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A mitigation plan outlines strategies to reduce the likelihood of a risk event occurring and minimize its impact if it does occur.Ī common use case for a mitigation plan is in the technology or marketing space, where risks such as cybersecurity breaches, user experience issues, or product launch delays can impact project success. In contrast, a mitigation plan is designed to proactively identify and address risks before they occur.

A contingency plan would outline steps to be taken to ensure the project remains on budget, the staff isn’t overworked, and the scope doesn’t creep out of hand.

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A contingency plan is typically implemented when a specific risk event occurs, and it outlines a series of actions to be taken to mitigate the impact of the event.Ī common use case for a contingency plan is during a marketing campaign, as there are many variables that could impact the project’s timeline, such as changes in budget, workload capacity, or overall scope. While these plans are often used interchangeably, there are key differences between them that make them better suited to specific use cases.Ī contingency plan is a backup plan designed to address unexpected events or risks that could impact the project’s timeline, budget, or quality. In project management, contingency plans and mitigation plans are both essential tools for managing risks and ensuring the successful completion of projects. Overall, having a contingency plan in place during a website launch can help ensure that pre-identified risks don’t derail the project’s success, ultimately leading to a smooth and successful launch. This could involve using social media channels or email newsletters to inform customers of the problem and provide updates on the status of the website. The plan may also include strategies for communicating with customers or stakeholders to manage expectations and mitigate the impact of the issue. For instance, if the website experiences technical difficulties, the contingency plan would include strategies to resolve the issue quickly, such as working with the web development team to identify the problem and implement a fix. But if any of these occur, a contingency plan can help you adjust. Some identified risks could be website crashes, cybersecurity breaches, or user experience issues.

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If it occurs during your project, you may have a contingency plan on how to incorporate it into the training phase of your project.Īnother excellent example of when a contingency plan would be appropriate is during a website launch since those are typically complex and multifaceted projects involving several stakeholders - including web developers, designers, marketers, and content creators.

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For example, say you’ve identified that a new training software should be released soon. It should be noted that contingency plans are not only put in place to anticipate when things go wrong - they can also be created to take advantage of strategic opportunities. We’ll walk you through when you should use a contingency plan, the difference between contingency plans and mitigation plans, how to do contingency planning, four steps you can take to develop your own contingency plan, and why Wrike is the ideal tool to help project managers create and implement contingency plans.Ĭontingency plans can only be created for identified risks, not unidentified or unknown risks - if you don’t know what your risk is, it’s impossible to plan for it. The Project Management Institute defines contingency planning as, “involv defining action steps to be taken if an identified risk event should occur.” Contingency plans in enterprise project management are a component of risk management, and should be part of the risk management plan, which may include risk management software.īy creating a business contingency plan, project managers can identify potential risks and develop strategies to mitigate them, reducing the likelihood of project delays, budget overruns, and other negative outcomes.

It is essentially a “Plan B”, to be put in place when things go differently than expected.

What Is a Contingency Plan in Project Management?Ī contingency plan in project management is a defined, actionable plan that is to be enacted if an identified risk becomes a reality.

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