Contingency Planning (A2 Business)

What is the term that occurs when a business plans for possible but unlikely events?

• Strategic Drift

• Contingency Planning

• Flux

• Emergent Strategy

• None of the above/answers

Fill in the blank. Contingency planning occurs when a business _______ for possible but unlikely events

• Plans

• Waits and sees

• Reduces probability of risk

• Shares or deflects risk

• None of the above/answers

True or False. Contingency Planning occurs when a business plans for impossible and unlikely events.

• True

• False

Select ALL the ways businesses deal with risk:

• Make contingency plans - prepare for it

• Ignore it (wait and see)

• Use insurance

• Treat risk as an opportunity

• Reduce probability of risk

What is a negative tradeoff of Contingency Planning?

• Might be a waste of time because the things being planned for may never happen

• If an event occurs, the business will be ready and able to react quickly

• A business will be able to continue to successfully operate

• A business will need to wait and see.

• None of the above/answers

True or False. A business can plan for every eventuality.

• True

• False

True or False. Managers must decides what the key issues to focus on for contingency planning.

• True

• False

Select ALL the factors in choosing key issues for contingency planning:

• Perceived likelihood of happening

• Likely impact on business if it happens

• Costs of planning

• None of the above/answers

US grocery store, HEB, is an example of a company that planned for what possible event?

• IT meltdown

• Covid 19

• Cyber Attack

• Brexit

As of April 2020, which of the following applies to UK grocery stores (e.g. Tesco) and the event of Brexit?

• High likelihood, high impact

• Low likelihood, low impact

• High likelihood, low impact

• Low likelihood, high impact