Why do businesses do contingency planning? Is it worth it?

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VIDEO CHAPTERS
0:00 Introduction
0:30 Why Contingency Planning is Important
0:51 Contingency Planning is part of the Way Businesses Manage Risk
1:16 What is Risk in Business?
2:00 Different Ways Businesses Deal with Risk
2:43 Examples of Common Approaches to Day-To-Day Risk Management
3:54 Contingency Planning is part of Risk Management
4:16 What is Contingency Planning?
4:55 When Contingency Planning Was Needed...
6:35 An Example of an Industry Where Contingency Planning is Essential
7:32 Where Contingency Planning Might be Needed Now!
8:20 Evaluating the Need for contingency Planning

VIDEO SUMMARY

This video, presented by tutor2u's Jim Riley, discusses the important concept of contingency planning in business strategy. Contingency planning is a way to manage risk and uncertainty, and involves preparing for the unexpected. Examples of risk management include taking out insurance, spare capacity, investment appraisal and market research. The video also provides examples of businesses that have failed to adequately prepare for risk and experienced large financial and reputational costs as a result. Finally, the video emphasises the importance of contingency planning to large businesses, and the need for businesses to identify and plan for the major risks that could impact them.