Contingency plans

Abstract

What will happen if Plan A doesn't work?  Uncertainty is a part of projects and cannot be avoided. There are things that we know can go wrong and things that we do not know about.  The main part of the uncertainty is the anticipation of risks, both desired and undesired.  The classic risk management process is risk identification, assessment, treatment, and control.  Contingency plans are about how to deal with the risk.

"The purpose of treat risk is to develop options and determine actions to enhance opportunities and reduce threat to project objectives. Risk treatment includes measures to avoid the risk, to mitigate the risk, to deflect the risk or to develop contingency plans to be used if the risk occurs". 

Contingency plans are your Plan B and ask the questions "What if....?". The risk could be anything from major crises, natural disasters to more common problems. Then there is the question of who creates these plans? Is it the top management, owner, or even the summer intern? There is not just one way to create a contingency plan, and therefore not just one role in a company that creates such plans. The overall responsibility and management are assigned to the most relevant person and that person is responsible for consulting and informing.  Steps to take in the creation of such a plan may vary from business to business and from project to project. According to the ISO 21500 Standard, the primary inputs are risk register and project plans and the primary outputs are risk responses and change requests. 

What is a Contingency Plan

A Contingency Plan is about controlling possible risks that may happen before or during a project to minimizing consequences. With other words creating a "Plan B". Contingency plans are good to implement in regards to all projects, doesn't matter if they are big or small projects. In everyday life many things can go wrong and the same can be said about projects. Doesn't matter if they are major issues or big, its always good to be prepared and know what to do in case something goes wrong. Even though you create a contingency plan it is not guaranteed that you are prepared for everything that might go wrong, that depends on how well you brainstorm and how good of a team you have. Then it's good to know the basic steps to help create such a plan.

How Do You Create Contingency Plan

The steps in creating contingency plan differ from department to department and from project to project. However they all have similar base and will help with risk management. 1. Identify business operation ○ What is the contingency plan for? What is it you will be identifying. The whole project, some part of it? ○ For example: 2. What are the Risks or Threats? a. What can go wrong? What are your week links? Can be everything like, deadline not met, system failure, weather or what ever comes to mind. 3. What will cause the risk or threat to happen? (trigger) 4. What are your reaction if that were to happen?(Action) 5. If it were to happen how much of a delay would it be to your project? (sleppa) 6. Who is responsible for activating the plan if an event occurs? a. TIP: try not to put a name in the contingency plan rather a job title or department. As we know people come and go within companies and projects. Additional step would be analyze the impact and probability of the impact and rate them in the likelihood of happening and therefore give them a PP number. - Mynd PP með tölum -

You can also just add them to a chart without giving them number of effectiveness. - Mynd af matrixi

Useful Tools

ow do you set up you contingency plan? There are many different ways on how to construct a good contingency plan. A common way is to use excel or similar software. - Mynd excel - - Mynd annað -

Gannt Charts have sometimes been used in then they can show in case scenario x happens the project will be delayed y

Models and forms to use: Asana - asana.com - Búa til í kringum dæmið Create dash boards