It also contributes to development of professional accountancy which ensures high-quality practices by accountants who are professional. The organization promotes the value of accountants worldwide by ensuring issues of public interest are addressed (Jackson, P. M. 2006). The vision of the organization is to ensure that the accountancy profession is recognized globally as a leader in development of sustainable organizations, robust economies and performing financial markets. Need for Contingency planning Contingency planning is needed by the organization in cases of inevitable situations. Computer hardware for the organization might become faulty or stolen.
The contingency plan is to insure the hardware and the benefit is that the firm can be compensated in case of occurrence of such inevitable situations. The organization needs contingency planning in data backup and procedures of its storage. It also needs to contingency planning to ensure that there is an office for emergency recovery in case of any risks. It also needs the planning in order to secure support for payroll and benefits of employees. In an emergency situation, the organization may need contingency planning in provision of information through development of emergency websites.
Contingency planning has several advantages. It minimizes loss that would have otherwise been incurred by the organization. If data is lost by the organization, its recovery would prove a hard task to undertake. In the event that an organization experiences a disruption, be it a natural disaster or power outage, a contingency plan functions to minimize losses ascribed to production. The contingency plan may be comprised of emergency power generators, reroute data, employee escape routes, as well as supervisory duties ascribed to contingency members of the team.
Operational plans that seek to ensure that production runs smoothly irrespective of unforeseen circumstances may potentially be the difference between a firm that ends up surviving a disaster and another that ends up folding. Associated costs may be ascribed to contingency planning as well as its maintenance; however, examined against the production loss, it is bound to be minimal. In the wake of a disaster outbreak, people end up panicking if an out and out action plan that can be followed is not in place. An elaborate contingency plan makes it possible for employees to make quick recoveries as opposed to awaiting instructions.
With adequate knowledge regarding their plan of action, it is possible to maintain order.
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Jackson, P. M. (2006). Nonprofit risk management and contingency planning: done in a day strategies. Hoboken, N.J.: Wiley.
Karlsson, M. (2004). Organizing technology planning: a contingent approach. Goteborg, Sweden: Dept. of Operations Management and Work Organization, School of Technology Management and Economics, Chalmers University of Technology.
Pacifici, R. E. (2000). Theorizing the standoff contingency in action. Cambridge: Cambridge University Press.
Waters, S., & Waters, S. (2009). The contingency plan. London: Nick Hern.