{"id":33224,"date":"2020-12-20T23:15:09","date_gmt":"2020-12-20T23:15:09","guid":{"rendered":"https:\/\/staging-mondaycomblog.kinsta.cloud\/?post_type=pm&p=33224"},"modified":"2026-03-08T09:31:17","modified_gmt":"2026-03-08T14:31:17","slug":"contingency-plan","status":"publish","type":"post","link":"https:\/\/monday.com\/blog\/project-management\/contingency-plan\/","title":{"rendered":"What is a Contingency Plan & How Do You Create One? [2026]"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"","protected":false},"author":234,"featured_media":151755,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"pages\/cornerstone-primary.php","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_title":"What is a Contingency Plan & How Do You Create One? [2026]","_yoast_wpseo_metadesc":"Learn the importance of contingency planning and how to create an effective contingency plan, with practical tips and a useful template.","monday_item_id":18059523764,"monday_board_id":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[13904],"tags":[14015],"class_list":["post-33224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management","tag-project-risk-management"],"acf":{"lobby_image":false,"post_thumbnail_title":"","hide_post_info":false,"hide_bottom_cta":false,"hide_from_blog":false,"cluster":"","banner_url":"","main_text_banner":"","sub_title_banner":"","sub_title_banner_second":"","banner_button_text":"","below_banner_line":"","display_dates":"updated","use_customized_cta":true,"display_subscribe_widget":false,"custom_schema_code":"","landing_page_layout":false,"featured_image_link":"","cta_button":{"title":"Sign up for high quality content","url":"https:\/\/forms.monday.com\/forms\/3ce1811bf93765f24eaf8a119ac6436f?r=use1","target":""},"post_date":"20240827","activate_cta_banner":true,"cta_banner_text":"

Don\u2019t miss <\/strong> more quality content!<\/p>\n","sidebar_color_banner":"","custom_tags":[14015],"faqs":[{"faq_title":"FAQs","faq_shortcode":"contingency plan","faq":[{"question":"Is a contingency plan the same as a backup plan?","answer":"

A contingency plan is sometimes called a backup plan because it involves an alternative list of actions or activities to do in case of an emergency or if an unexpected risk occurs to a business.<\/p>\n"},{"question":"What should a good contingency plan include?","answer":"

A good contingency plan should include a comprehensive business impact analysis, identifying key risks and their potential effects on normal operations. It must also outline actionable response plans, recovery strategies, and the roles and responsibilities of team members during an emergency.<\/p>\n"},{"question":"What comes after a contingency plan?","answer":"

After creating a contingency plan, the next step is to implement and regularly test the plan to ensure its effectiveness. Continuous monitoring and periodic reviews are essential for updating and refining the plan based on new risks and evolving business needs.<\/p>\n"},{"question":"Who writes a contingency plan?","answer":"

Typically, a contingency plan is written by a team of experts, including senior management, risk management professionals, and department heads responsible for critical business functions. Collaboration with various stakeholders ensures the plan covers all aspects of business operations and provides a comprehensive emergency response strategy.<\/p>\n"},{"question":"How long is a contingency plan?","answer":"

The length of a contingency plan varies depending on the complexity and size of the organization, as well as the scope of risks addressed. Generally, it is detailed enough to cover all essential business operations, but compact enough to be practical and actionable during an emergency.<\/p>\n"}]}],"disclaimer":"","hide_time_to_read":false,"cornerstone_hero_cta_override":{"label":"","url":""},"parse_from_google_doc":false,"content_doc":"

The vast majority of failed projects and bankrupt companies had a plan and followed it. So why do these projects and companies end up failing?<\/span><\/p>\n

Unexpected things happen that companies don\u2019t plan for, and many fail to adapt in time.<\/span><\/p>\n

The key: having a sound contingency plan. A contingency plan is all about expecting the unexpected and preparing to deal with worst-case scenarios ahead of time. This article will cover why you need a contingency plan, and walk you through step-by-step instructions for creating one. We\u2019ll also provide a contingency planning template you can implement and use on monday.com immediately.<\/span><\/p>\n

Get started<\/span><\/a><\/p>\n

What is a contingency plan?<\/b><\/h2>\n

A contingency plan, also known as an alternate plan or plan B, is a predefined set of actions that you will implement in response to specific future events that put your project or business at risk.<\/span><\/p>\n

A simple example of a contingency plan is to back up all your website data. That way, if your website gets hacked, it will be easy to restore the data after regaining access and changing passwords.<\/span><\/p>\n

Without that backup, the team might have to recreate the entire website from memory or build a website from scratch. That\u2019s a significant expense and can mean several extra days (or weeks!) of downtime.<\/span><\/p>\n

A contingency plan is about managing and lowering risk and setting yourself up for speedy disaster recovery.<\/span><\/p>\n

What are the two types of contingencies in project management?<\/b><\/h2>\n

There are two types of contingencies that you should plan for: <\/span>budget contingency<\/span><\/a> & schedule contingency.<\/span><\/p>\n