What is a contingency plan?

A contingency plan is specifically designed as a protocol to address potential risk events when they occur. This type of plan outlines the steps an organization will take to respond to unforeseen circumstances, such as natural disasters, sudden leadership changes, or market fluctuations. It includes alternative strategies that can be implemented to ensure business continuity and minimize disruption. The creation of a contingency plan is crucial for risk management and helps organizations prepare for unexpected challenges, ensuring they can maintain operations and protect their assets.

In contrast, the other options describe different concepts. Improving employee performance relates to strategies for training and development, while workplace diversity deals with policies aimed at creating an inclusive environment. Benefit programs pertain to employee compensation and perks, rather than risk management strategies.