What Is Contingency Factors?


1 Answers

Arianna Vaccaro Profile
Arianna Vaccaro answered
Contingency factors play an important role in contingency planning within an organization. They are what makes a company more prepared for the unexpected situations that can arise all too often within the corporate world. Having a good contingency plan may be what makes the difference between a company coming through a difficult trading period and not making it.

• Contingency planning is vital as it prepares a company for any unforeseen or unexpected circumstances that may arise.

• Contingency factors are what are taken into consideration within this overall planning phase. When carrying out this phase, staff will need to look at particular factors that could prove a risk to the company's normal operations.

• Contingency factors may include social, economic, cultural or political factors that could affect the company. For example, this type of planning may be more important for a company that deals with suppliers or clients from countries where there is political instability for example.

• Contingency factors can either influence a business directly or indirectly. This is why getting the plan in place is important as it will reduce potential risk to the company if any factors arise that prevent it from achieving its full potential.

• Part of contingency planning will also involve looking at ways contingency factors could be managed or reduced so as to reduce the potential risk to the company.

Answer Question