Organizations experience unexpected events that disrupt operations and plans. Significant contingencies should be anticipated and plans should be developed for responding when a specific contingency or a category of contingencies occurs. The process of developing contingency plans is called contingency planning.

Contingency plans should be developed by a team representing diverse areas of the organization.

1) The first step in contingency planning is preparing a "comprehensive list of the potentially serious incidents that could affect the normal operations of the business" or organization.

2) A contingency plan should then be developed that includes actions "to move the organization from its disrupted status towards a return to normal operations" or to a new level of improved operations.

also see Business Continuity Plan

from http://www.contingency-planning-disaster-recovery-guide.co.uk/
http://www.contingencyplanning.com
http://www.business-continuity-world.com