Contingency plan for small business

Contingency plans protect a company from unforeseen threats.Contingency plans protect a company from unforeseen threats.

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A contingency is an unexpected event or situation that affects the financial health, professional image, or market share of a company. It is usually a negative event, but can also be an unexpected windfall such as a huge order. Anything that unexpectedly disrupts a company's expected operation can harm the company even if the disruption is because of a windfall. That is why companies create contingency plans for many possible situations, so company management has a pre-researched plan of action to immediately follow. Some threats usually covered in contingency plans are crisis management, business continuity, asset security, mismanagement and reorganization.

Crisis Management

Many types of crises that can affect the well-being of a company include natural disasters, terrorist attacks, fire in the warehouse, on the job injuries or even angry customers. Plans to deal with crises generally include department by department SWOT analysis (strengths, weaknesses, opportunities, threats) that attempt to identify vulnerabilities and potential challenges.

Continuity Plan

Business continuity plans cover a range of situations, including the death of a key executive or manager, crisis events that threaten to shut down business operations for an extended period of time, and any other financial situation or unexpected event that threatens to destroy or injure the company. Continuity plans generally involve insurance policies that provide for the cost of keeping the company in operation, and the cost and hiring of consultants that are specialists in solving the types of problems besetting the company.

Asset Security

Theft or destruction of intellectual property, such as trade secrets or computer programs, key machinery or equipment, or any other valuable assets a company needs for its operations and maintenance of its market position are generally covered by a security plan. This also includes the security of the company's internal computer network and confidential files. A security plan attempts to block any negative contingencies that might occur, but when they do, the company's contingency plan prescribes backup of certain customer and corporate records, and intellectual assets. Legal strategies are also included in a contingency plan for the purpose of helping to mitigate the damage created by such events.

Mismanagement

Fraud, theft, operational errors, mismanagement and personal scandal are all crises that require special public relations strategies as well as various types of insurance. The handling of these crises involves careful attention to legal considerations and liability to the shareholders and if not handled immediately with efficiency and confidence, they can ruin the company's professional image and ability to do business. For this reason, companies create a system of checks and balances to prevent such problems in addition to creating detailed action plans to deal with these contingencies.

Reorganization

After the worst has happened, the company's contingency plan also covers how the company will re-establish normal operations and reorganize to limit any future contingencies. Reorganization to meet new challenges is important whether the company is dealing with negative events or the unexpected pressure of having to rapidly expand production to function in spite of the demands of a windfall order.


Wiley Prepare for the Worst, Plan for the Best: Disaster Preparedness and Recovery for Small Businesses
Book (Wiley)
2007-07-25 10:51:58 by outsource-IT?

What happens if he goes out partying one weekend

And gets killed in a car wreck?
Smart business people have a contingency plan for events like that. If I had 3 IT guys I wouldn't worry, but I don't want to hire 2 more for a small business. Finding short term help on CL is one type of contingency plan, but I was wondering is there are any businesses that offer this type of service.
I'm not concerned about docs and passwords, we have full backups stored offsite in our bank vault.

2008-06-11 16:12:25 by HR_Mgr

HAHAHA you fucking moron

You are REALLY ignorant about how hotels run. There's a beautiful thing called attrition. If groups cancel, WE STILL GET MONEY. If corporate business cancel in our busiest transient season (now through the end of Oct), we can fill the room blocks with transient guests. So trust me, I'm not worried.
You have to understand that major 300m+ businesses like the one I work for have plans in place for slow economic times. Defense was one of the governement entities that was actually BUSIER, you think that's the only one? Of course not. Since room blocks are usually booked out a considerable time out and in the contracts attrition is included so you STILL get money if they cancel, it's easy to change the businesses you target

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