Contingency Planning

Decision-making Tools

Tamitra Rosetta Harris

American InterContinental University

HCM640-1204B-01- IP Unit 5

Professor Robert Rodriguez

Introduction

Contingency planning can be defined differently within different organizations. Contingency planning is known as management policies and procedures designed to maintain or restore business operations. It is a recovery plan that will be taken if things do not go as planned or if disaster occurs and the business products are destroyed because of a flood, fire, computer virus, or a major failure. This process can include relocating information systems and operations to alternative locations. There are 7 steps in a Contingency Planning Process (What is a Contingency Planning in Strategic Evaluation?, 2009).

Step 1

The first step of a Contingency Planning process is to develop a contingency planning policy statement. This step establishes a formal policy that provides that authority and guidance necessary to develop an effective contingency plan. The organization should identify beneficial and unfavorable events that can cause a distraction to the strategies. The organization should define how the contingency planning process will be structured, managed and undertaken. This can include scheduling of planning meetings and management support team for the process (What is a Contingency Planning in Strategic Evaluation?, 2009).

In a surgical center, the management will use this step to start identifying what is good in the organization and what can possibly be a threat or a hazard. This will be a form of brainstorming in order to start the contingency planning process.

Step 2

The second step in the contingency planning process is to conduct a business impact analysis (BIA). This helps identify and prioritize information systems and components that supports the organizations mission...