Final answer:
Contingency planning identifies alternative courses of action that can be quickly taken if problems occur with the original plan.
Step-by-step explanation:
Contingency planning identifies alternative courses of action that can be quickly taken if problems occur with the original plan. It is like a backup plan that can be implemented in case the original plan fails or faces unexpected challenges. This ensures that the organization is prepared to deal with any contingencies and minimize their impact on the overall operations.
For example, if a company is organizing an outdoor event and there is a possibility of rain, they can have a contingency plan in place to move the event indoors or reschedule it to a different date.
Contingency planning is an essential part of risk management and helps organizations to be proactive in addressing potential issues, maintaining business continuity, and reducing the negative impact of unforeseen circumstances.