Creating a Contingency Plan

Since systems are exposed to many commotions such as failure, short time system downtime, and more severe as equipment damage, having an effective contingency plan is required in order to reduce these risks.

A crucial part of the contingency planning is the risk analysis or to develop standards of evaluating risks and create recovery solutions. In an E-Business implementation project first decisions have to be taken to mitigate the problem and start with prioritizing them. The most critical risks defined in the project are system failure, short system go-down, and hardware problems. They are the most important units to continue running the business.

Next step would be to find simple, but feasible solutions. When the disaster or disruption occurs it is better to have an easy to implement solution. If a system failure occurs the best solutions to implement would be selling off some units that prevent improvements and switching to the primary business model to reduce the need of a system. A recovery strategy for this type of risk would be combining all methods to provide a recovery capability over all range of occurrences, a more large level of contingency plan.
In case of a short system go-down, the solution would be to perform some or all of the affected processes manually while the system is fixed.

And lastly if the business encounters hardware problems after evaluating hardware relation to applications area and identifying the downtime allowance, a contingency strategy to implement would be equipment replacement. Substitutive equipment should be purchased in advance and stored at an offsite location. Another option would be a disaster recovery solution.

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