What is a contingency plan in project management?

A contingency plan in project management is a defined, actionable plan that is to be enacted if an identified risk becomes a reality. It is essentially a “Plan B”, to be put in place when things go differently than expected.

What is a contingency plan example?

A simple example of a contingency plan is to back up all website data in case your site gets hacked. If this scenario happens, you can then restore the data after regaining access and changing passwords. If you’re not prepared, you might have to recreate your entire website from memory.

How do you write a contingency plan for a project?

8 steps for contingency planning

1. Make a list of risks.
2. Weigh risks based on severity and likelihood.
3. Identify important risks.
4. Create contingency plans for the biggest risks.
5. Get approval for your contingency plan.
6. Distribute your contingency plans.
7. Monitor your contingency plans.
8. Create new contingency plans if necessary.

Why is contingency planning important in project management?

A contingency plan is executed when the risk presents itself. The purpose of the plan is to lessen the damage of the risk when it occurs. Without the plan in place, the full impact of the risk could greatly affect the project. The contingency plan is the last line of defense against the risk.

What are key components of a contingency plan?

The key elements of a contingency plan are “protection, detection, and recoverability.”

What contingency means?

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.

What are the key elements of any contingency plan?

What are the steps in contingency planning?

How to Develop a Contingency Plan in 7 Steps

1. Create an official policy.
2. Gather your resources.
3. Use risk assessment.
4. Draft your plan.
5. Test your plan.
6. Update your plan.
7. Brainstorm unlikely scenarios.

What are the 5 steps of contingency planning?

For a thorough look at the contingency planning process, consider the steps below:

• Create an official policy.
• Gather your resources.
• Use risk assessment.
• Draft your plan.
• Test your plan.
• Update your plan.
• Brainstorm unlikely scenarios.

What are the five main stages of contingency planning?

The following are the five basic steps of contingency planning for epidemic, pandemic, or other emergency situations.

• Program Management.
• Planning.
• Implementation.
• Testing & Exercise.
• Program Improvement.

What makes a good contingency plan?

Your contingency plan should include a step by step guideline for what to do in case the event has occurred and how to handle the situation. Furthermore, it should also include information about the key personnel to reach out to including their up to date contact information.

How is contingency used?

In the case of an owner’s budget for a collaborative delivery project, the purpose of a contingency is to incorporate an additional allotment of funds within the final approved budget that can be used when and if the scope of a project changes with an associated cost increase in the delivered project.