SELF IMPROVEMENT - What Are The Factors That Influence Contingency Planning?

Nouman Umar answered

The contingency planning is very important thing in the modernmanagement. The multinationals are very focused to the contingencyplanning factors and they have the departments which are working for thecontingency planning. Contingency planning is important to meet the unforeseen factors of the business. 

So contingency planning is all about the risk determination in any form of business whether it is in the form of tough competition, political factors, cultural factors, social factors and natural factors which can directly or indirectly can influence the business. So the contingency planning is very important for the business. So this helps the business to reduce the risk for the business. Especially for those countries who are doing business in the countries where the political system is not stable. 

So this is why the contingency planning is important in the business. Companies make plans for the future and try to highlight the issues which have possibilities to have influence the business in any form this is called the contingency. They make plans how to reduce a certain risk, how can they avoid the risk or they can decrease the ratio of the risk. So this is an important part of the planning and is usually done at the top management.