Emergence plan
| Emergence plan |
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| See also |
Emergence plan is a type of reorganization plan after the company declared bankruptcy. If the company wants to exit bankruptcy status it should prepare emergence plan which will restore financial liquidity, remove problems and open it to new opportunities. Such a plan is accepted by bankruptcy court.
Purpose of emergence plan is preparing organizational and technical solutions focused on providing continuity of essential processes, which being realized in company or organization in case of crisis contingency. The main goal of emergence plan adhibition is reinstate previous operational efficiency as fast as it is possible. Emergence plan should minimalize damages connected with contingency having negative impact on proper functioning of organization or company. Proper preparation of emergence plan can provide security and stability of the organization or company.
Emergence plan in strategic planning
Emergence plan has also wider meaning in strategic planning. In strategic planning term emergence is related to opportunities that emerge in company environment. But to utilize opportunities the company has to be prepared, it has to create the conditions that will enable using them. The emergence plan describes what conditions, when, why and how should be created in order to utilize potential opportunities in the company.
Developing the emergency plan
Article on the "Ready.gov" side describes: "Developing an emergency plan begins with an understanding of what can happen. Review your risk assessment. Consider the performance objectives that you established for your program and decide how much you want to invest in planning beyond what is required by regulations. Document available resources. Determine whether external resources have the information they would need to handle an emergency. If not, determine what information is required and be sure to document that information in your plan. Prepare emergency procedures for foreseeable hazards and threats.Develop hazard and threat specific procedures." [1]
Every emergence plan should contain
Every emergence plan (irrespective of size or type of organization/company operations) should contain:
- Direct procedures in case of emergence causing danger or losses
- Directions of actions for the sake of providing proper functioning of the organization/company
- Procedures of actions leading to restoring state before the emergence
Research clearly proves that proper preparded emergency plan usage can provide adequate level of safety and stability.
Example
Let's assume that a major part of the company employees travel by airplane which due to accident gets crashed. The company might got dramatically charged or even ruined due to this kind of loss. According to that, many companies dispose certain procedures in case of emergency. A plan can also include typical strategies to minimalize potential dramatic impact of the emergency, such as requirements of separate travelling or limitation of the employees which are able to travel at once in one airplane.
Cantor Fitzgerald, the financial company, is the perfect example of emergency plan implementation. During the two hours company lost 658 employees from 960 and large part of offices and trading objects due to September 11 attacks. Despite of catastrophe and dramatic losses, a company was able to resume activity in a week. Today it is the successful company. [2]
References
- Contingency plan @ Wikipedia
- (2018) Emergency Response Plan, Department of Homeland Security
- Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard business review, 72(1), 107-114.
- Swanson M., Bowen P., Phillips A. W., Gallup D., Lynes D.(2010) Contingency Planning Guide for Federal Information Systems
Footnotes
- ↑ Emergency Response Plan 2018, Department of Homeland Security
- ↑ Contingency plan 2018, Wikipedia
Author: Martyna Miszczak
