Final answer:
Contingency planning is the proactive process of preparing for unexpected events, which includes processing abstract information, anticipating novel situations, and ensuring timely responses to potential crises. It is essential despite sometimes being time-intensive and costly.
Step-by-step explanation:
Contingency planning is a critical process organizations undertake to prepare for unforeseen events. It involves the ability to process abstract information and anticipate situations that have never yet arisen. This type of planning recognizes the importance of preparing in advance rather than waiting for a crisis to occur, as a lack of preparedness may result in being unable to mount a timely response.
It's a common misconception that contingency planning isn't essential because it may not be used. However, the purpose of contingency planning is to make individual sacrifices for the greater good, even if those plans are not mandated. It also reflects the understanding that awaiting a clear-and-present crisis is not advisable. Although contingency planning can be time-consuming and sometimes expensive, this cost must be weighed against the potential risks of being unprepared in an emergency.