CONTINGENCY MANAGEMENT

PLAN
HSE LEVEL 3

BY: Dr. Amaechi Chinyere F.

Tel.: 08161116220,
sswatch0114@gmail.com
Background
Contingency management is a relatively young field, which became
popular after some major disasters such as Category 5 hurricanes and the
bombing of the twin towers in New York. With these, organizations began
to adopt Contingency management while taking into account
vulnerabilities to natural and manmade disasters.

Also, in the face of growing global legislations and the expansion of the
global market, companies must institute proper planning to ensure that
they protect their information and maintain business continuity.

Contingency management Plan is therefore the logical first step in

mitigating business risks and minimize potential losses.
Objective
 Participants may rank among the successful(s) in their
endeavours
 To realise the importance of planning in every success

 To realize the importance of regular performance

review
 To be able to respond swiftly to major unforeseen
events that might have direct impact on a company’s
long-term goals
Definitions
Contingency

• Unforeseen event

• Emergency situation

• Incident at the workplace

• The possibility of something awry to happen

Definitions Cont.d
Management
Proper organisation of processes/procedures
Due supervision
Ideal running of affairs
Good administration

Plan
Diagram
Sketch
Map
Orderly Arrangement
Preparation or being on the alert
Contingency Management Plan

Contingency Management Plan is a management approach

based on the belief that if you want to operate your business
effectively in the long run, you must be fully prepared for
emergency events or disruptions and plan towards any eventuality.

• It involves anticipating emergencies and planning to control

them through making provisions that may be applied to contain
the event, mitigate the consequences and enable early return to
normal operations
 Categories of Disasters
Disaster producing events or activities to plan for are:

Enemy attack: e.g. blasts, thermal and nuclear radiation, biological

or chemical agents.

Sabotage: It could be fire, explosion, nuclear radiations, biological

and chemical agents. Saboteurs are enemies and use enemy tactics

Natural/Operational: This will include; earthquake, storm, flood,

fire explosion etc.
For this purpose, you can use:
 Risk-assessment procedures to identify dangers/hazards and
vulnerabilities
 Devise measures to prevent accidents
 Device measures to limit their impact

Components
Key components in contingency management are:
 Business continuity planning and
 Disaster-recovery programs
Contingency plan’s four major components
Emergency response
Crisis management
Business recovery, and
Business resumption.
The fundamental elements of each component and the need for an
effective integrated contingency planning process is implied.
You will note that emergency response, crisis management, business
recovery, and business resumption processes have much in common
however, each is handled as a standalone process.
• Business continuity planning
Business continuity planning is planning and implementing prevention
activities and preparing for anticipated risks.

• Disaster-recovery programs
Disaster-recovery programs involve procedures that are related to preparing
for recovery or continuation of business operations after a disaster had
occurred. It is a subdivision of business continuity planning.

Critical components of effective contingency management include:

 Data security
 Well-prepared backup sites
 Access to those backups after a disaster eg, plane crash & the black box
and
 Pre-selected personnel to deliver critical services.
Benefits
• The rising levels of risks increasingly challenge businesses around the world today.
• The increasing reliance of businesses on technology, along with the increased
exposure to the risk of natural and purposeful disaster, means that businesses are
more likely to suffer from significant adverse events from time to time.
Other agents of contingency (change in business) include:
- The economy
- Social attitudes
- Government
- Competition
Therefore, a proper and effective contingency management approach is necessary for
survival.
Adopting a contingency management approach can be effective in reducing shock
associated with disruption.
Need for Planning
• Disasters and emergencies may give no warning before happening
• The fact that they are sudden, fast and with very severe consequences
demand that plans are put in place to avert the undesirable
consequences.
• Making no plans in anticipation of event usually results in panic and
frantic actions being taken to contain the situation.
• The result in the circumstance is that, time is lost during the ad hoc
planning for the event, efforts and resources are duplicated, thus
incurring more costs.
• Escalation may continue causing more damage and losses including loss
of human life all of which add more to the cost.
When to have a Contingency Plan (CP)..- A Refugee situation
Contingency plans are developed and repeatedly reviewed as part of the APA (Advanced
Preparedness Action) when risks are “medium” (CP to be considered) or high (CP is
mandatory).
The goal of contingency planning is to agree on a scenario, response strategy (eg for the
first 2-4 weeks, coordination arrangements and resource needs between all partners)
(UNHCR 2015b, UNHCR 2015i).
Contingency plans should address the following: (UNHCR 2015b, 2015i):
 Situation and risk analysis (including gender analysis)
 Context and scenario-specific response strategy
 Operational delivery
 Coordination and management arrangements
 Operational support arrangements
 Preparedness gaps and actions
 Funding requirements / source
Principles of a Contingency Plan
The following key principles should be considered when preparing a contingency plan
(UNHCR 2015b, UNHCR 2015i):
 Contingency planning must be realistic, simple and easy to carry out by all staff and
not to be confined to specialists or experts
 The contingency plan needs to be flexible and specific rather than broad
 Contingency plans should use resources efficiently to meet the humanitarian needs
 Importance should be given to the process, rather than only the written document
 A successful plan should include detailed information (e.g. descriptions of water
systems, geographical areas, construction techniques, piping materials, generators
and required fuel etc.for water supply systems). The plan can even go as far as to
include market studies for hygiene promotion items or material for Operation and
Maintenance such as chemicals and spare parts.
Should the emergency indeed occur, the contingency plan can be immediately
transformed into a Preliminary Response Plan or a Refugee Response Plan, which can
also serve as funding appeal (UNHCR 2015b and UNHCR 2015i
Preparation for Emergency Control

Every industry irrespective of its nature or products needs an emergency control plan.

Certain industries have severe operational hazards that are obvious and generally well
controlled. For instance; drilling operations.

Some others believe that they are relatively free from possible crippling catastrophe
because they employ no highly flammable materials, or manufacture highly dangerous
products.

However, every building housing few number of persons may become a site
for disaster in the event of some unforeseen panic producing emergency.

It is advisable to plan survival and recovery measures for all installations.

Understanding the threatening dangers and knowing how to reduce and

control them before the emergency happens can reduce their effect.
Preparation for control Cond.
This has two facets:
 The Specific Disaster control Organisation: plans, training, and
 The fundamental organization structure: operational relationships,
leadership, morale, discipline, and quality of physical facilities of the
concern as established for general operation.
NOTE IMPACTS ON
1. A structured & organized company
2. A non structured organisation
When a disaster occurs, the special control organization should respond
swiftly.
Truth is that, even good administrators cannot instantly create specially
trained crews whose services may be invaluable in an emergencys
Planning Concepts
Disaster planning is based on the following concepts:
1.Vulnerability Assessment
2. Surviving Planning
3. Self Help
4. Determination and Exploitation of existing
capabilities
5. Operational Readiness
PHASES IN DISASTER PLANNING
Phase 1: Estimate the situation
Phase 2: Developing the plan
Phase 3: Testing, Evaluation, Revision of the Plan

DISASTER PLAN TESTING

The following steps are essential for testing a disaster plan
1. Developing a technique for testing the plans
(a)Understand reasons for testing which are:
(b) Methods of Testing the Plan
Note
Conditions under which plans are tested should approximate realism. Simulated
attacks, sabotage, or natural disaster. Other employees or participants should not
have prior information concerning the type of situation to be simulated.
2.Methods of Disseminating Information about Disaster
Plan
 Key personnel and supervisors should be briefed and should
understand the plan as it affects them as individuals and their area
of responsibility. Each should have a copy of the plan.
 Supervisors should briefing their team one-on-one.
 This briefing should be limited to the understanding of the plan.
 Notices on bulletin boards should be limited to action type
information.
 Posting of complete plans on bulletin boards is inadequate
3. Utilisation of disinterested persons
4. Deficient or unworkable procedures should be noted and
indicated
5. No definite time element can be established for frequency of
tests.
DISASTER CONTROL ORGANIZATION.
The first measure is to establish an organization for the purpose.
Director of Disaster Control
He is the company’s Emergency Controller. He spends quality time in the
facility.
Assistants and Deputies
The Director appoints one or more assistants for emergency control
measures in plants.
Shift superintendent.
These are persons who have experience and ability in leading people to take
the place of their immediate superior if he is absent for any reason.
Alternates: These are alternates for the director and for each of his
assistants in case any of them is absent when disaster occurs, or is disabled
by the disaster.
DUTIES OF THE DIRECTOR DURING EMERGENCY (Disaster Control
Council)
The Director will be responsible for the following functions during a disaster or
emergency, therefore, the persons in charge of the functions will be directly
responsible to the director, and each should have a deputy
 Communication
 Fire fighting
 Rescue and salvage services
 Guard services
 First Aid and Medical services
 Warden services
 Demolition and Repair
 Transportation
 Investigation
 Public Relation
Understanding Emergency Preparedness vs Contingency Planning
In emergency situations, time pressure constitutes one of the most acute
challenges.
Emergency (the crisis/pandemonium that accompany a difficult and
dangerous situation) preparedness (the readiness to attack/confront the
situation), and contingency planning (planning for the unforeseen) give room
to dealing with anticipated problems before the onset of a crisis.
The aim of emergency preparedness include the following:
 To build resilience
 to achieve a practical level of prepardness and
 to strengthen the coping capacity of local actors.
These help to reduce:
 vulnerability
 guarantees a prompt and suitable response to an emergency, and
 to avoid preventable loss of life and reduce suffering.
When is Emergency Preparedness Initiated?
Emergency preparedness is initiated long before
the actual response and involves elements such
as:
 Risk analysis
 Response planning
 Preparedness actions and
 Scenario-based contingency planning
ERP Framework
Depending on the nature of the humanitarian crisis (refugee
situation vs. non-refugee or internal displacement situation), two
different frameworks are used to guide emergency preparedness.
They both adopt a forward-looking, “no regret” approach and
include the same components but are designed for use by different
stakeholders:
 the Preparedness Package for Refugee Emergencies (PPRE) is
used in refugee situations. Since response to refugee crises
always lies under the responsibility of UNHCR, this framework is
designed for the use of UNHCR offices, in partnership with host
governments, UN and NGO partners (UNHCR 2015c).
ERP Framework
 The Emergency Response Preparedness Framework (ERP) of the
Inter-Agency Standing Committee (IASC) is used in situations that
involve Internally Displaced People (IDPs). Such situations require
concerted actions by different agencies and organisations,
coordinated by IASC.
 The ERP framework supports inter-agency country teams, UN
Resident Coordinators and Humanitarian Coordinators in collectively
preparing a well-orchestrated humanitarian response (UNHCR
2015a, UNHCR 2015c).
Contingency as a new behavioral treatment for drug abuse
in people with severe and persistent mental illness

In contingency management interventions for substance misuse

treatment, urine samples are collected multiple times each week (to
detect brief periods of abstinence) and abstinence is reinforced
each time negative samples are submitted.

The reinforcers are monetary based – caseh or a prize.

In effective contingency management interventions, the magnitude
of reinforcement provided (voucher amounts or draws for prizes)
increases with sustained periods of abstinence
 CONCLUSION
It’s important to note that a complete contingency planning program
has three major elements:
•1. Emergency response
•2. Crisis management
•3. Business continuity: business recovery and business resumption
Executive management has the obligation to ensure contingency
planning is properly considered and addressed within the company.
The consequences of not planning for contingencies can be
catastrophic, with numerous liability issues
THANK YOU