Contingency Plan: Having a Plan B

The video tutorial explains the concept of contingency plans, emphasizing their importance in crisis management. It differentiates between contingency and crisis management plans, highlighting that contingency plans are pre-decided strategies to handle potential risks. The tutorial outlines four key steps in creating an effective contingency plan: risk identification, risk evaluation, risk response development, and risk response control. It stresses the importance of having a well-prepared plan to manage risks and ensure project success.

What is the primary difference between a contingency plan and a crisis management plan?

• A crisis management plan is prepared before any project starts.

• A crisis management plan is only for positive incidents.

• A contingency plan is developed after a crisis occurs.

• A contingency plan is prepared in advance, while a crisis management plan is developed during a crisis.

What is a contingency plan primarily designed to address?

• Only positive outcomes in a project.

• Only financial risks in a project.

• Both usual and unusual risks that may occur during a project.

• Only negative incidents in a project.

What is the first step in creating an effective contingency plan?

• Risk evaluation

• Risk response development

• Risk identification

• Risk response control

How are risks categorized during the evaluation step?

• By their financial impact

• By their location

• By their duration

• By their probability and severity

What is the purpose of risk response development?

• To eliminate all risks

• To develop strategies to respond to identified risks

• To ignore low probability risks

• To focus only on external risks

What is the role of mitigation in risk response development?

• To focus only on internal risks

• To ignore the risk until it happens

• To reduce the effect of a risk before it occurs

• To increase the impact of a risk

Why is it important to have a well-prepared contingency plan?

• To avoid any project planning

• To have a backup plan ready for potential risks

• To focus only on positive outcomes

• To ensure that no risks occur