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Contingency Plans and Risk Analysis

1What is a contingency plan? What is risk analysis? What similarities and differences occur in the contingency plan and a risk analysis? Why are they important to a lodging organization?

2What are the steps in contingency plan development? What individuals should be involved in the development of a contingency plan? Why is it important to involve these individuals?

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1. A contingency plan is an alternative course of action adopted by most businesses that can be implemented in the event that the primary approach fails to function that way it should. Risk analysis is the process of defining and analyzing the dangers to individuals, businesses and government agencies posed by possible natural and human caused adverse events.
Both approaches involve identifying potential negative situations within an organization that can adversely affect the normal flow of business operations. Like risk analysis plans, contingency plans may be developed in non emergency situations. Whether organizations are developing contingency plans or analyzing risks one of the first questions personnel needs to ask themselves is: What are you protecting? Both types of plans involve determining the relative importance of the risks faced by businesses. Risk analysis and contingency plans do not plan for every crisis a business may face but they both focus on certain disastrous events that can occur within a business. Within risk ...

Solution Summary

This solution provides a discussion of contingency plans and risk analysis.