Contingency Plan and Risk Analysis

This blog by the team of homeworkhelpexperts.com would discuss about the contingency plan and risk analysis. This would highlight similarities and differences and their importance for an organisation.

Contingency plan refers to the framework that is planned and implemented by the organizations for facing the adverse situation to minimize negative impact of the failure plan on the organizational functions and growth. So, it works as an alternative for directing the firm’s management in negative situations (Payne, 1999). On the other side, risk analysis refers to the technique and process that is used or followed by the firms to assess present or future threats and vulnerability that may affect success of the firm or project (Westfall, 2008).



Similarities and Differences

Similarities

Risk analysis and contingency plan both are related with the frameworks that are used by the firms to minimize the chances of failure of the firm or any project. Along with this, main aim of both frameworks is to increase the chances of success of organizational operation or any project (Melnick and Everitt, 2008).

Differences:

Risk analysis and contingency plan both are different terms. Risk analysis is used to assess threats for the firms and face them effectively. At the same time, in the condition of failure of any plan or project, contingency plan is followed and implemented by the firm. Risk analysis is related with the running plans. On the other side, contingency plan is related with the adverse condition of any plan (Koenig, 2003).

Importance of Risk analysis and Contingency Plan

To assess available threats and adopt present opportunity in the marketplace for the firm, risk analysis plays an important role. Additionally, to analyze barrier that may affect organizational growth and success, risk analysis is useful for lodging organizations. At the same time, contingency plan supports the dealing with risks that can be faced by the firm in the future (Bowers, 2011). So, both are important for lodging organizations to run their business without any loss or failure.

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References
Bowers, A. R. (2011). Clinical Risk Assessment and Management of Service Users. Clinical Governance: An International Journal, 16(3), pp. 1-24.
Koenig, D. T. (2003). The engineer entrepreneur. New York: ASME Press.
Melnick, E. L & Everitt, B. (2008). Encyclopedia of quantitative risk analysis and assessment, Volume 1. USA: John Wiley and Sons.
Payne, C. F. (1999). Contingency plan exercises. Disaster Prevention and Management, 8(2), pp. 111–117.
Westfall, L. (2008). The Certified Software Quality Engineer Handbook. USA: ASQ Quality Press.