You are the Security Manager of MegaBucks Industries, Inc. You recently completed a refresher course on Contingency Planning, and, based on this course, have made an appointment with CEO to discuss this topic. You realized that MegaBucks Industries, Inc. has no plans to handle the issues you reviewed in class. How would you describe what Contingency Planning is to the CEO and what items would you suggest the company work on to handle potential issues? Solution A contingency plan is the plan which is devised for an outcome other than in the expected plan. It is utilized for risk management whenever an exceptional risk that, though unlikely, may have catastrophic effects. Contingency plans are devised by governments as well as businesses.The requirement for drawing up contingency plans flows from a full analysis of the risks that your organization faces. It\'s useful in thinking about new as well as ongoing projects: what will happen if \'Plan A\' doesn\'t work out as expected? Sometimes Plan A only means \'business as usual.\' At other times, with more advanced risk management plans, Plan A could be the first response to deal with an identified risk , and if Plan A does not work, you may utilize your contingency plan. Principles in risk assessment process: Identify the risks involved Prioritizing the risks The Risk Impact/Probability Charts enables you find this balance. With the help of these, you can analyze the impact of each risk, and also estimate a likelihood of its occurring. You can then find out which risks need the expense and the effort for risk mitigation. Business processes crucial to long-term survival.