A contingency plan is a plan devised for an outcome other than in the usual (expected) plan. It is often used for risk management for an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments or businesses.

What is meant by contingency plan?

Contingency planning is defined as a course of action designed to help an organization respond to an event that may or may not happen. Contingency plans can also be referred to as 'Plan B' because it can work as an alternative action if things don't go as planned.

What does a contingency plan include?

Your contingency plan should include a step by step guideline for what to do in case the event has occurred and how to handle the situation. Furthermore, it should also include information about the key personnel to reach out to including their up to date contact information.