While some companies have developed contingency plans, most have not.
This lack of preparedness not only threatens the viability of sectors in Canada but, as in the case of manufacturing, it also jeopardizes the delivery of critical goods that depend on complex supply chain systems.
Next, identify the threats that could harm each critical operation.
These could include the loss of key staff, technical failure, or a change in government policy, for example.
That's why it's important to make contingency planning a routine part of the way you work.
In this article, we explore how to create and maintain robust contingency plans, so that you've always got a backup option when things go wrong.State what needs to be done within the first hour, day and week of the plan being implemented.This could be as simple as, "Inform employees of the situation immediately." But you may need far more detailed timelines for certain situations, such as data breaches, serious workplace injuries, or leaks of hazardous materials.Fires, floods, tornadoes – these are the type of events that we often associate with contingency planning.But what if your main supplier suddenly goes bankrupt, your entire sales force comes down with food poisoning, or your website is held to ransom by hackers?This reveals which risks require the expense and effort of risk mitigation.Business processes that are essential to your organization's survival, such as maintaining cash flow and market share, are typically at the top of the list. But in some cases it may be safer or more cost-effective to tackle it in other ways: to avoid the risk, by investing in new equipment, for example; or to share the risk, by purchasing an insurance policy.(Our article, Risk Analysis and Risk Management, covers this process in more detail.) Chances are, you'll end up with a long list of potential threats.It may be unrealistic to attempt contingency planning for all of them, so you need to prioritize.Risk Impact/Probability Charts are a good way to do this.These charts help you to analyze the impact of each risk, and to estimate how likely it is to happen.