Contingency Planning Quiz

What is the primary goal of Contingency Planning?

• To increase company profits

• To prepare for events that could hurt the business

• To expand the business globally

• To reduce employee workload

How do contingency plans help businesses after a disaster?

• They increase marketing efforts

• They reduce time, cost, and stress

• They hire more employees

• They focus on product development

What might a contingency plan include if a warehouse floods?

• Hiring new staff

• Moving stock to a temporary site

• Launching a new product

• Increasing advertising

What is a downside of making detailed contingency plans?

• They are too simple

• They can be expensive and time-consuming

• They are not effective

• They are not necessary

What is a characteristic of unpredictable issues?

• They are always minor

• They are easier to plan for

• They can cause more damage

• They are not important

What should businesses focus on according to the evaluation section?

• Low-impact, low-probability risks

• High-impact, high-probability risks

• All possible risks equally

• Only predictable risks

What is the key to effective contingency planning according to the evaluation?

• Over-planning for all events

• Ignoring rare events

• Balance

• Focusing only on predictable issues

What is the relationship between contingency planning and risk management?

• Contingency planning is unrelated to risk management

• Contingency planning is a part of risk management

• Risk management is a part of contingency planning

• They are the same thing

What does risk management try to do?

• Increase profits

• Prevent problems

• Expand the business

• Reduce employee numbers

How is risk management described in the document?

• Knowing what to do in a crash

• Calling emergency services after a crash

• Wearing a seatbelt

• Setting up systems before anything happens