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The Importance of contingency plans in the Covid era

3 min read

The Importance of contingency plans in the Covid era

By definition, the contingency plan is an instrument that establishes a set of strategies meant to avoid a possible threat and minimize the risks towards the main gears and processes of a company.

It’s true that many companies had already implemented risk management, conformity and resource processes, mainly regarding financial issues, as a way to deal with predictable and governable challenges. But was any of them prepared for such an impactful global event as the one we’re experiencing right now?

Pandemics are rare and unpredictable which means we are never fully prepared to react accordingly. In a short span of time the epidemiological event grew exponentially, and we were confronted with a succession of unexpected events that demanded a swift response.

Companies had to create, or adapt, their contingency plan in order to react to the unprecedented circumstances that arose from the need to prevent and control Covid-19. Some of these companies were already partially prepared and were able to stand out from the rest due to their ability to react and adapt quickly to the current delicate moment.

For those who already had contingency plans, the main difference was the way they reacted quickly and organically, whilst keeping in mind the fast-changing context we are all operating in. Adding to this, these companies also have to keep in mind the need of downgrading the impact caused by the public health crisis which encapsulates unsurmountable economic and social repercussions.

In this “Covid Era” the main concern is to safeguard health. Adding to this there is the need to comply with the rules and instructions given out by competent authorities whilst at the same time making it all compatible with the companies’ objectives and business operations. Therefore, companies and organizations take on a vital role in protecting the health and safety of their employees, but are also a crucial player in limiting the negative impact that the Coronavirus exerts both in society and in the economy making contingency plans extremely important. We need to react quickly, and during a pandemic, time is of the essence.

The magnitude of the Covid 19 crisis, and the speed at which its impact is perceived demands an immediate plan of action in order for companies to secure their day to day operations as well as their continuity. This means that (re) defining the Plan is an ongoing dynamic process subject to changes and that at any given time, implementing new measures, or redefining old ones, might be needed.

Whilst being created and/or implemented, these measures must be carefully thought-out in light of the circumstances of the current crisis, its reasonableness and adequacy regarding the ever-changing context must be evaluated, as well as the impact arising from them. This pandemic has made it necessary to identify and update additional measures in a “blink of an eye”

When structured around a continuity plan, these measures are facilitators and allow us, amongst other things, to:

  • Have a holistic view of the company due to the existence of crises management committee already in place.

  • Make decisions easily, quickly and articulated due to the involvement of all relevant parties.

  • Analyse and determine possible impacts in business operations.

  • Understand the impact to the interested parties as the context changes.

  • Reinforce control over the processes and critical indicators.

  • Define adaptation mechanisms to new and changing contexts.

  • Define transversal action plans, in accordance with the defined strategies, namely in organization, staff, technology, facilities and communication.

  • Assure that the available resources (human, technological and logistical) can support the business continuity.

  • Maintain and secure the technical infrastructure, adapting it to the new demand, minimizing loss of efficacy.

  • Support Communication technology.

  • Create and implement specific tools to the crisis management.

  • Communicate swiftly and conveniently.

  • Determine mitigation strategies to guarantee business continuity.

Coronavirus is in itself a massive disruption to normal, but maybe it’s time to acknowledge and accept that disruptive is the new normal.

This pandemic made us think and think again, and consolidated the idea that if an organization intends to improve the way they deal with disruption in the future, it is not enough to think and strategize the way they normally would. They will need to re-think their strategy to anticipate disruption instead of simply reacting to it.

Hasty reactions, without a solid and though out background supporting it, may result in more issues to solve.

Planning is absolutely necessary when facing a pandemic and its after math, and it is important to be aware that a contingency plan might make the difference between a company caving in or surviving.

Sandra Trindade

Sandra Trindade

Risk Analyst

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