What best describes a contingency plan?

A contingency plan is specifically designed to address potential future events or emergencies that could disrupt standard operations or cause unforeseen challenges. This type of plan lays out procedures and actions that should be taken if an unexpected situation arises, ensuring that an organization can respond effectively and minimize negative impacts.

The essence of a contingency plan is its proactive nature; it anticipates risks and prepares for them, which is critical for organizational resilience. For instance, a business might create a contingency plan for a natural disaster, outlining steps for maintaining operations, protecting employees, and communicating with stakeholders. This ensures that when an unexpected event occurs, the organization has a clear strategy to follow, which can help to mitigate disruptions and maintain continuity.

While other options may represent important aspects of business strategy and operations, they do not capture the essence of a contingency plan. A long-term strategy for growth focuses on future goals and direction rather than immediate responses to emergencies. A detailed budget for the year outlines financial planning but does not involve preparatory actions for unforeseen events. A guide for daily operations pertains to routine tasks and management but lacks the flexibility and forward-thinking aspect inherent in a contingency plan.