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Contingency Management Plan

Updated on April 17, 2016

A contingency management plan is a plan that you make in order to deal with a problem that might happen. it involves anticipating emergencies and planning to control them through making provisions that may have to be applied to contain the event and mitigate the consequences and enable early return to normal operations. The hazards and effects management process notes that the top event when a hazard is released could escalate with disastrous consequences should the barriers in place fail. Recovery preparedness measures were therefore considered necessary to prevent or mitigate the effect of the escalation of the top event. one of such recovery preparedness measures is a contingency management plan.

Contingency is define as an event that might happen in the future, especially one that might cause problems. such an event could be a disaster event or an emergency. And disaster is a very bad accident that causes great damage or loss of life. An event such as flood or storm that produces suffering or unfortunate consequences. While An emergency situation is a sudden abnormal or unplanned situation, which requires immediate attention and may endanger human life, the environment, or have an adverse effect on company/public asset or reputation. it is a situation that must be dealt with immediately.

Categories of Disasters

* Enemy Attack- damage causing factors of which are blast, thermal and nuclear radiations, biological and chemical agents. They are usually overt actions, but often with little or no warning.

* Sabotage- fire, explosion, nuclear radiation, biological and chemical agents. sabotage are enemies and use enemy tactics; but their acts are covert and without warning.

* Natural/operational- earthquakes, storm, flood, fire, explosion. these are inherent hazards that people are aware of. They may give signs of being about to happen, or give no warning.

A common feature is that there may be no warning of imminent danger; there is also the feature that their effects could be devastating.

The Need For Planning

The motto of the boys cscout movement "be prepared" is worthy of application in the matter of disaster and emergencies, considering that they may give no warning of being about to happen, and usually do not. Disaster are known to occur, and the fact that they occurred a number of times is a fair indication that they could occur again. That and the fact also that they are sudden, fast and with very severe consequences. Making no plans in anticipation of an event usually result in panic and frantic action being taken to contain the situation. The result in the circumstances is that time is lost during the ad hoc planning for the event; efforts and resources are duplicated; thus involving more cost, much more than would have been required; meanwhile eacalation continues, causing more damage and loss of life, adding to the cost of the event

Preparation For Emergency Control

Every industry, whether the industry handles dangerous stuff or not, needs an emergency control plan. Certain industries have severe operational hazards that are obvious and are generally well controlled, e.g drilling operations. some others believe that they are relatively free of the possibility of a crippling catastrophe because they employ no highly flammable materials, or manufacture no highly dangerous products.

The truth is that any building housing some number of people may become a site for disaster in the event of some unforeseen panic producing emergency. Much the same basic control measures possible for emergency conditions will generally apply. A sound approach so to plan survival and recovery measures for all installations. Understanding the threatening dangers and knowing how to reduce and control them

Preparation For Control Has Two Facet:

* The specific disaster control organization, plans and training and

* The fundamental organization structure, operational relationships, leadership, morale and disciple, and quality of the physical facilities of the concern as established for general operation.

A well organized, smoothly functioning company with adequate and planned facilities will adjust to a new situation more quickly and effectively than would a firm lacking those characteristics. Even so the planned organization needs to prepared for an emergency because its customary procedures may proves wholly inadequate and too slow to cope with a sudden emergency. When a disaster occurs the special control organization should go into operation immediately. The normal administration would take over gradually in accordance with their responsibilities. The fact is that even good administrators cannot on the spur of the moment make as good or take effective actions as are possible with careful previous planning. Nor can they instantly create specially train crews whose services may be invaluable in an emergency.

Planning Concepts

Disaster planning is based on the following concepts:

1. Vulnerability Assessment- This involves a determination of the categories of disaster and the damage causing factors to which the installation may be exposed, internally and externally. The nature of the operation, plant and equipment, location, products, and employee and community relations could make a plant vulnerable to explosion, fire, flood, sabotage, or enemy attack.

2. Surviving Planning- The planning goal must be realistic, based on a relative rather than absolute safety. it should be the best available. Some installations may be exposed to situations that could result in total destruction, in which case survival planning is entirely dependent upon the protection of vital records and personnel continuity measures. other installations may experience moderate to light damage, and must plan for continuity of operations even with greatly reduced capabilities. realism is assured if planning is for the most serious eventualities and if plans are made for operation under disaster conditions without normal conveniences and hampered by special personnel and morale problems. planning must be phased with definite planning goals and reasonable achievement dates.

3. Self Help- For large organizations, each installation is responsible for planning and putting into effect measures necessary to assure its survival. They know their operations and vulnerabilities best.

4. Determination And Existing Capabilities- A sound disaster emergency plan utilizes to the maximum the existing operational structure, proven supervisory and technical skills, and material and equipment on hand. Maximum effectiveness is attained when the unknown and variable factors in the situation are reduced to a maximum through prior planning. The disaster organization should not be a substitute for, but an extension of , the organization that has proven effective in routine operations. Personnel who give directions in an emergency should be those from whom others are accustomed to receiving directions. The skill to from whom others are accustomed to receiving directions. The skill to perform specialized emergency tasks should be derived from professional and vocational interest. Emergency equipment should augment or supplement equipment on hand.

5. Operational Readiness- Only sound plans in a state of operatioal readiness will increase the probability of survival. operational readiness implies preparing the plan, training presonnel in emergency responsibilities, testing the plans, evaluating the tests, revising the plan as necessary, and constant retesting of the plan to ensure its adequacy and workability in event of disaster. Readiness cannot be accomplished if personnel are not familiar with the contents of the plan and their responsibilities. Therefore, also implied here is the dissemination of information as needed to the individual employee, preferably by his supervisor


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