Contingency Planning:
Once the events are evaluated and categorised, and the levels of risk attaching to them have established.
The organisation should then commence planning to reduce or eliminate them. Obviously, those events categorised within the high / extreme category would take precedence over those categorised within other areas.
Examples of contingency planning could be:
- The introduction of policies to avoid the event happening
- Seeking insurance to assist should an event occur
- Seeking additional funding
- Rental/hire of equipment / stock
- Restructuring labour costs
- Reducing or recycling wastage
- Where the risk is so extreme, withdraw from the business totally