What should an organization establish to address unforeseen risks?

A contingency plan is essential for organizations to effectively manage unforeseen risks, as it outlines specific actions to take if a crisis or unexpected event occurs. By having a contingency plan, an organization prepares in advance for various scenarios that could disrupt operations, enabling it to respond quickly and minimize potential damage. This proactive approach enhances resilience and ensures business continuity.

The other options relate to important aspects of organizational management but do not specifically focus on unforeseen risks like a contingency plan does. An operational audit is more about evaluating the efficiency and effectiveness of existing operations, while a resource allocation plan focuses on how an organization distributes its resources effectively. A strategic growth plan concentrates on long-term goals and expansion strategies and does not address immediate risk management needs. Thus, while all these plans contribute to overall organizational health, the contingency plan is uniquely suited for addressing unforeseen risks.