What is the difference between a contingency plan or a risk plan?

Question

Homework

Answer 1

contingency
- something that may happen: an event that might occur in the future, especially a problem, emergency, or expense that might arise unexpectedly and therefore must be prepared for
- something set aside for unforeseen emergency: provision made against future unforeseen events, e.g. an allocation of funds...
risk
- chance of something going wrong: the danger that injury, damage, or loss will occur
- hazard: somebody or something likely to cause injury, damage, or loss
- chance of loss to insurer: the probability of loss to an insurer, or the amount that an insurer is in danger of losing
- possibility of investment...

Answer 2

A contigency plan is a plan to be operative contingent up on happening or not happening of an uncertain event. For example
A drama is set to take place at a theatre. There is likely hood of a main actor not reaching in time since he may be coming from a distant place. In such an eventuality the manager of the show keeps a spare actor ready to face the contingency of the main actor not turning up in time.

The risk plan on the other hand is planning for managing the risk inherent in the transaction/event. If a trekker is going in a Himalayan trek, he takes adequate stock of medicines for the likely injury. He plans his schedule in such a way as to take care of delay due to landslides etc will not distrub his return journey. He keeps 2 days spare.

A contingent plan comes into operation only up on happening or not happening of an event. If no unanticipated incident happens the plan is not operative.

Answer 3

Plan can go into effect contingent up on an event. Is the contingency plan.

Expectation of lots of snow falling, this may include shutting the operation and sending personal home on prediction of snow storm moving in.

Hurricane approaching. Plan will be to evacuate ahead of the storm.

Rick plans are developed to avoid the risk it self or reduce the risk of certain events occurring.

Venting a boiler at certain pressure manually or automatically to avoid boiler explosion.

Shouting down in safe mode a reactor of any kind before a runway reaction can cause great damage to property-personal.