Final answer:
Contingency planning is an organization's method for dealing with emergencies. It involves identifying potential risks, developing strategies to mitigate those risks, and establishing protocols for responding to emergencies.
Step-by-step explanation:
Contingency planning is an organization's method for dealing with emergencies. It is a process of creating a plan of action to minimize the impact of unforeseen events on the organization and ensure business continuity. It involves identifying potential risks, developing strategies to mitigate those risks, and establishing protocols for responding to emergencies.
For example, a business might have a contingency plan in place to deal with a natural disaster such as a hurricane. The plan might include steps to secure the physical premises, backup data and systems, and establish communication channels with employees and customers.
In conclusion, the statement is true. Contingency planning is an essential part of effective risk management for organizations.