5.7 Crisis Management & Contingency Planning
- costs
- risks
- time
- safety
benefits to contingency planning cost
- less expensive than if you didn’t have a backup plan during an emergency
- allocate funds to crisis
- avoid making expensive mistakes during crisis time
- prompt response
- reassures stakeholders risks
- reduce chance of crisis occurring (things like workplace fires or accidents) safety
- people and property
disadvantages to contingency planning cost
- money money
- insurance
- planning for ‘what ifs’ is costly time
- spend time planning crisis instead of working on your business
- lost of crisis’ planned never happen risks
- you may underestimate cost of some things (i.e. terrorist attack)
- you cannot predict all crisis
- need to be regularly updated and reviewed ⇒ but expensive and time-consuming safety
- money of training