{"id":17125,"date":"2019-08-02T21:41:47","date_gmt":"2019-08-02T10:41:47","guid":{"rendered":"https:\/\/creately.com\/blog\/?p=17125"},"modified":"2024-10-02T17:35:55","modified_gmt":"2024-10-02T06:35:55","slug":"business-contingency-plan-templates","status":"publish","type":"post","link":"https:\/\/creately.com\/blog\/business\/business-contingency-plan-templates\/","title":{"rendered":"The Easy Guide to Creating a Business Contingency Plan"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p>How to avoid disasters? Be prepared for them.&nbsp;<\/p>\n\n\n\n<p>When things are going well, you often forget to plan for the bad times. But when disaster strikes, you could lose everything in a heartbeat.<\/p>\n\n\n\n<p>An earthquake can bring your whole shop to the ground, your biggest client can choose your competitor over you, your system suddenly can crash making you lose important data etc. There are endless possibilities of disasters if you really think about it.&nbsp;<\/p>\n\n\n\n<p>That\u2019s why lack of a plan can be a disaster of its own.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s see why you need a business contingency plan and how to create one in a few simple steps.&nbsp;&nbsp;<\/p>\n\n\n\n\n\n<h3 class=\"wp-block-heading\">What is a Business Contingency Plan?&nbsp;<\/h3>\n\n\n\n<p>But first, let\u2019s define what a contingency plan is.&nbsp;<br><\/p>\n\n\n\n<p>A contingency plan is a proactive strategy that describes the course of actions or steps the management and staff of an organization need to take in response to an event that could happen in the future. It plays a significant role in <a href=\"https:\/\/www.investopedia.com\/terms\/b\/business-continuity-planning.asp\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"business continuity (opens in a new tab)\">business continuity<\/a>, risk management and disaster recovery.&nbsp;<br><\/p>\n\n\n\n<p>It helps you stay prepared for unforeseen events and minimize their impact. It also outlines a plan for carrying out the normal business operations after the event has occurred.&nbsp;&nbsp;<br><\/p>\n\n\n\n<p>It\u2019s also known in names such as plan B, backup plan, and disaster recovery plan. In case your primary plan doesn\u2019t work, it\u2019s time to execute the plan B. <br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Benefits of a Contingency Plan&nbsp;<\/h4>\n\n\n\n<p>Without a contingency plan you\u2019re opening yourself to unnecessary risks. Here are some important benefits of a contingency plan that you cannot look away from.&nbsp;<br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Helps react quickly to negative events. As a contingency plan lists the actions that need to be taken, everyone can focus on what to do without wasting time panicking.<\/li>\n\n\n\n<li>Having a contingency plan in place allows you to minimize damage that could happen from a disaster and minimize the loss of production. For example if you have emergency generators set up, even during a blackout, your team can work seamlessly.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">How to Make a Contingency Plan&nbsp;<\/h3>\n\n\n\n<p>An effective contingency plan is based on good research and brainstorming. Here are the steps you need to follow in a contingency planning process.&nbsp;<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Step 1: List down the key risks<\/h4>\n\n\n\n<p>Identify the major events that could have a negative impact on the course of your business and on the key resources, such as employees, machines, IT systems etc.&nbsp;<br><\/p>\n\n\n\n<p>Involve other team heads, subject experts, and even outsiders like business consultants to get a deeper understanding of things that may cause problems and jeopardize the direction.<br><\/p>\n\n\n\n<p>Use <a href=\"https:\/\/creately.com\/lp\/create-mindmaps-online\/\">mind mapping tool<\/a> to organize and categorize the information you gather from the brainstorming session with the staff. You can easily share this with everyone in the organization to get their input as well. <br><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/creately.com\/demo-start?tempId=yOaRlppQSzv\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"912\" src=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Mind-Map-for-Risk-Identification-1024x912.png\" alt=\"Mind Map for Risk Identification\" class=\"wp-image-17126\" srcset=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Mind-Map-for-Risk-Identification-1024x912.png 1024w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Mind-Map-for-Risk-Identification-300x267.png 300w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Mind-Map-for-Risk-Identification.png 1675w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Mind Map for Risk Identification (Click on the template to edit it online) <\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Step 2: Prioritize the Risks Based on Their Impact&nbsp;<\/h4>\n\n\n\n<p>Once you have created a list of all the possible risks that could occur in different areas of your business, start prioritizing them based on the threat they pose.&nbsp;<br><\/p>\n\n\n\n<p>The risk impact probability chart is a handy tool you can use here. It helps you evaluate and prioritize risks based on the severity of their impact and the probability of them occurring. <br><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/creately.com\/demo-start?tempId=tHxXFcjllPe\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Risk-Probability-and-Impact-Matrix-1024x1024.png\" alt=\"Risk Probability and Impact Matrix\" class=\"wp-image-17127\" srcset=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Risk-Probability-and-Impact-Matrix-1024x1024.png 1024w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Risk-Probability-and-Impact-Matrix-150x150.png 150w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Risk-Probability-and-Impact-Matrix-300x300.png 300w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Risk-Probability-and-Impact-Matrix-80x80.png 80w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Risk-Probability-and-Impact-Matrix.png 1500w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Risk Probability and Impact Matrix (Click on the template to edit it online) <\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Step 3: Create Contingency Plans for Each Event<\/h4>\n\n\n\n<p>In this step you\u2019ll create separate plans that outline the actions using <a href=\"https:\/\/creately.com\/usage\/action-plan-template-example\/\">action plan template<\/a>, you need to take in case the risks you identified earlier occur.\u00a0<br><\/p>\n\n\n\n<p>Consider what needs to be done in order to resume normal operations after the impact of&nbsp; the event.&nbsp;<br><\/p>\n\n\n\n<p>Here you\u2019ll need to clarify employee responsibilities, timelines that highlight when things should be done and completed after the event, restoring and communications processes and the steps you need to have taken in advance to prevent losses when the event has taken place (i.e. insurance coverage).\u00a0<\/p>\n\n\n\n<p>You can use a visual format here to highlight the course of actions and <a href=\"https:\/\/creately.com\/lp\/timeline-maker-online\/\">timeline maker<\/a> to create timelines. It would be easier for everyone to comprehend.<\/p>\n\n\n\n<p><strong>Template 1<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/creately.com\/demo-start?tempId=rsx07OjfJly\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"930\" src=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-Example-1024x930.png\" alt=\"Business Contingency Plan Example\" class=\"wp-image-17128\" srcset=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-Example-1024x930.png 1024w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-Example-300x273.png 300w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-Example.png 1761w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Business Contingency Plan Example (Click on the template to edit it online) <\/figcaption><\/figure>\n\n\n\n<p><strong>Template 2<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/creately.com\/demo-start?tempId=6ksYBY3tXnk\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"805\" src=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Busine-Contingency-Plan-Template-1024x805.png\" alt=\"Business Contingency Plan Template\" class=\"wp-image-17129\" srcset=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Busine-Contingency-Plan-Template-1024x805.png 1024w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Busine-Contingency-Plan-Template-300x236.png 300w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Busine-Contingency-Plan-Template.png 1680w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Business Contingency Plan Template (Click on the template to edit it online) <\/figcaption><\/figure>\n\n\n\n<p><strong>Template 3<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/creately.com\/demo-start?tempId=FBGWEZ5AbfI\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"630\" src=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-1024x630.png\" alt=\"Business Contingency Plan\" class=\"wp-image-17130\" srcset=\"https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-1024x630.png 1024w, https:\/\/d3n817fwly711g.cloudfront.net\/uploads\/2019\/08\/Business-Contingency-Plan-300x185.png 300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Business Contingency Plan (Click on the template to edit it online) <\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Step 4: Share and Maintain the Plan&nbsp;<\/h4>\n\n\n\n<p>Once you have completed the contingency plans using <a href=\"https:\/\/creately.com\/usage\/work-plan-template\/\">work plan template<\/a>, make sure that they are quickly accessible to all employees and stakeholders.\u00a0<br><\/p>\n\n\n\n<p>Review your contingency plans from time to time and update them as needed. And it\u2019s a best practice to inform your employees of the changes as well, as it may include updates to their roles and responsibilities.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What\u2019s Your Take on Contingency Plans?<\/h3>\n\n\n\n<p>That is how you make a detailed contingency plan. List down the major incidents that could harm your business operations, prioritize them based on their impact and probability, create an action plan explaining what you should do in case they occur, and review and update them frequently.&nbsp;<br><\/p>\n\n\n\n<p>What is the contingency planning process at your organization? Let us know in the comments section below. <br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to avoid disasters? Be prepared for them.&nbsp; When things are going well, you often forget to plan for the bad times. But when disaster strikes, you could lose everything in a heartbeat. An earthquake can bring your whole shop&#8230;<span class=\"continue-reading\"> <a href=\"https:\/\/creately.com\/blog\/business\/business-contingency-plan-templates\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":24,"featured_media":28668,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[869],"tags":[1258,1260,1261,1259],"class_list":["post-17125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-contingency-plan","tag-contingency-plan-template","tag-contingency-planning-process","tag-how-to-make-a-business-contingency-plan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Business Contingency Plan | A Step-by-Step Guide<\/title>\n<meta name=\"description\" content=\"Learn what is a business contingency plan and how to make one in a few simple steps. Free business contingency plan templates to get a headstart.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/creately.com\/blog\/business\/business-contingency-plan-templates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Business Contingency Plan | A Step-by-Step Guide\" \/>\n<meta property=\"og:description\" content=\"Learn what is a business contingency plan and how to make one in a few simple steps. 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