What Is An Example Of A Contingency?

What do you mean by contingency planning?

A contingency plan is essentially a “Plan B.” It’s a backup plan in place for when things go differently than expected.

In other words, a contingency plan in project management is a defined, actionable plan that is to be enacted if an identified risk becomes a reality..

What business activities should be covered by contingency plans?

A good contingency plan should include any event that might disrupt operations. Here are some specific areas to include in the plan: Natural disasters, such as hurricanes, fires, and earthquakes. Crises, such as threatening employees or customers, on-the-job injuries, and worksite accidents.

How do you test a contingency plan?

Methods for testing contingency plans to determine the effectiveness of the plans and to identify potential weaknesses in the plans include, for example, walk-through and tabletop exercises, checklists, simulations (parallel, full interrupt), and comprehensive exercises.

What is the importance of contingency plan?

“The purpose of any contingency plan is to allow an organization to return to its daily operations as quickly as possible after an unforeseen event. The contingency plan protects resources, minimizes customer inconvenience and identifies key staff, assigning specific responsibilities in the context of the recovery.”

Which of the following is an example of a contingent liability?

Description: A contingent liability is a liability or a potential loss that may occur in the future depending on the outcome of a specific event. Potential lawsuits, product warranties, and pending investigation are some examples of contingent liability.

How do you use contingency in a sentence?

Contingency sentence examplesThis type of contingency was not one we planned for. … During exercises, the government’s premier contingency operations compound in the Appalachian Mountains of Tennessee was populated only by maintenance crews and a few relaxed guards.More items…

Are future uncertainties considered contingent liabilities Why or why not?

A contingent liability is a potential loss that may occur at some point in the future, once various uncertainties have been resolved. This liability is not yet an actual, confirmed obligation.

What are contingency factors?

A contingency factor is anything that cannot be accurately predicted or forecast in the future. A contingency is the unexpected, or things that are out of your control. Natural disasters, economic crisis and other major events all fall into this category.

What is security contingency plan?

Contingency planning – for purposes of information security – consists of a coordinated strategy of various plans, procedures, technical measures and initiatives for ensuring the recovery of information systems, operations, and data after a disruption of services. … traditional automated procedures.

What is another word for contingency?

Some common synonyms of contingency are crisis, emergency, exigency, juncture, pinch, straits, and strait. While all these words mean “a critical or crucial time or state of affairs,” contingency implies an emergency or exigency that is regarded as possible but uncertain of occurrence.

How do you use contingency?

A contingency is an event you can’t be sure will happen or not. The noun contingency describes something that might or might not happen. We use it to describe an event or situation that is a possible outcome but one that’s impossible to predict with certainty.

What is a contingency an existing situation?

What is a contingency? a. An existing situation where certainty exists as to a gain or loss that will be resolved when one or more future events occur or fail to occur.

What is contingency?

1 : a contingent event or condition: such as. a : an event (such as an emergency) that may but is not certain to occur trying to provide for every contingency. b : something liable to happen as an adjunct to or result of something else the contingencies of war.

How do you set up a contingency plan?

Here are the steps you need to follow in a contingency planning process.Step 1: List down the key risks. … Step 2: Prioritize the Risks Based on Their Impact. … Step 3: Create Contingency Plans for Each Event. … Step 4: Share and Maintain the Plan.

Which of the following is an example of an estimable probable contingency?

Only contingencies that are probable and can be estimated are recorded as a liability and an expense is accrued. An example of an estimable probable contingency is a warranty. Contingencies that are probable but cannot be estimated are disclosed in the notes to the financial statements.

What are the key elements of any contingency plan?

The key elements of a contingency plan are “protection, detection, and recoverability.”…CONTINGENCY PLANNINGexists;is communicated to employees; and.is tested regularly.

What is an example of a contingency plan?

A contingency plan is a plan devised for an outcome other than in the usual (expected) plan. … Contingency plans are often devised by governments or businesses. For example, suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard.