While business owners and managers may have thoughts about how to handle a crisis, they are not always comprehensive. By instilling a contingency plan, those in charge are forced to evaluate all possible ramifications in the event of a disaster. Devising a contingency plan is a methodical process. Evaluating the effects of steps A and B leads to the realization that steps C and D will also occur. Actually, sitting down to create a contingency plan means looking at the big picture rather than a series of disconnected steps.
When a disaster occurs, people panic if they do not have a clear plan of action to follow. A well-documented contingency plan allows employees to move quickly into recovery mode rather than waiting for instruction.