When developing contingency plans, firms typically focus on the events that are most likely to occur rather than on the events that could cause the most harm.

Question

Quizplus · Accepted Answer

Firms developing contingency plans focus on both the likelihood of events occurring and the potential impact those events could have on the business, including events that could cause significant harm, even if they are less likely to occur.

When Developing Contingency Plans, Firms Typically Focus on the Events