10+ Contingency Plan Templates - Word, PDF (2024)

FAQs

How to make a contingency plan template? ›

The best contingency plan template should be comprehensive yet simple to use. It should identify and categorize potential risks, specify preventive measures, and clearly outline the response plan. A helpful business contingency plan also offers a mechanism for tracking progress and reviewing the plan's effectiveness.

A contingency plan is a predefined set of actions that you will implement in response to specific future events that put your project or business at risk. A simple example of a contingency plan is to back up all your website data.

A favorable ruling in a lawsuit or an inheritance would be an example of contingent assets. Contingency plans might involve purchasing insurance policies that pay cash or a benefit if a particular contingency occurs. For example, property insurance might be purchased to protect against fire or wind damage.

Contingency planning consists of four major components: The Business Impact Analysis, the Incident Response Plan, the Disaster Recovery Plan, and the Business Continuity Plan.

Indeed Editorial Team. Updated 23 March 2023. Contingency plans are tools that help businesses manage when unforeseen events disrupt a primary plan.

What is a good contingency plan? Good contingency plans address the many possible disasters that may happen. It might address natural disaster scenarios or supply chain issues. A good contingency plan helps you address many different types of disruptions.

Contingency planning has three components: an estimate of what is going to happen, a plan based on this estimate of what the response should be; and some actions identified to be best prepared.

NIST Special Publication 800-34, Contingency Planning Guide for Information Technology (IT) Systems provides instructions, recommendations, and considerations for government IT contingency planning. Contingency planning refers to interim measures to recover IT services following an emergency or system disruption.

To develop a contingency plan, first conduct a risk assessment: identify your business-critical operations, identify the threats to those operations, and analyze the potential impact of each threat. Then, include the following points for each threat: Scenarios. Triggers.

What is a good contingency percentage? ›

How much contingency do I factor in? Industry standard for construction risk contingency is 3-10% of total hard costs. Some developers budget contingency for soft costs as well, typically 1% percent of total project costs or 10-20% of total soft costs.

To get started with contingency planning, businesses must first conduct a risk assessment in which they identify and analyze their potential risks. Then, keeping their strategic objectives in view, they should prioritize them in order to determine which events they need to plan for.

There are tons of contingencies, but the four most common are appraisal, inspection, loan, and home sale.

The key difference between a contingency plan and a mitigation plan is that a contingency plan is reactive, while a mitigation plan is proactive. Contingency plans are used to address risks that have already occurred, while mitigation plans are used to prevent risks from occurring in the first place.

A typical contingency budget will range from 5-10% of a project's budget. Assess all risks associated with the project to estimate the contingency budget.

Contingency planning has three components: an estimate of what is going to happen, a plan based on this estimate of what the response should be; and some actions identified to be best prepared.

The easiest way to do this is to multiply the probability percentage by your estimated cost impact, providing a risk contingency for each line item. For example, a risk probability of 20% multiplied by a cost impact of $40,000 equals a risk contingency of $8,000.