Contingency Planning (HL IB Business Management)

Time

• Helps businesses to respond immediately
  • Clear staff roles & responsibilities 
  • Resources are identified and available 
  • Procedures are shared in advance

• A time-consuming process
  • Risk assessment takes valuable management time
  • Plans need to be revisited regularly 
  • Staff require training

Cost

• Can reduce costs 
  • Emergency equipment/resources are purchased in advance
  • Financial losses are likely to be lower

• Spending on resources needed in a crisis may be wasted if not needed
• Difficult to budget for unknown crisis situations 

Safety

• Procedures keep stakeholders such as staff and customers safe
  • Training increases awareness
  • Legal obligations should be met (e.g. fire regulations)

• Bureaucratic and difficult to implement swiftly
• Leadership and compliance from staff or other stakeholders is needed

Risk

• Most likely threats are considered in detail
  • Reduces legal risks if procedures are followed

• Requires up to date and complete information to be effective
• Human reactions such as fear and panic cannot be fully mitigated