What is a primary purpose of contingency plans?

A primary purpose of contingency plans is to address potential unforeseen circumstances that may disrupt operations or hinder progress. These plans are essential in risk management, as they outline strategies and actions that an organization can take in response to various emergencies or unexpected events. By having effective contingency plans in place, a business can ensure continuity of operations, minimize the impact of adverse events, and maintain stability in times of crisis. This proactive approach enables organizations to be better prepared for challenges such as natural disasters, economic downturns, or sudden changes in market conditions, ultimately supporting their resilience and overall strategic goals.