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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.
The plan should be a dynamic document that is updated regularly to insure it remains current and relevant.
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