Three reasons organizations use contingency plans

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Bradshaw Inc. (BI) is a talent agency that provides management services to artists who are actors and singers. BI attributes its success to Tim Bradshaw, the founder and president, who started BI 40 years ago and has established a good reputation among artists. Tim also has a good network of movie and music producers, which ensures that he is able to introduce his artists to the right people and ensure the artists get good services.

Tim is 67 and still works very hard, overseeing BI's finances as well as supervising all 12 talent agents that work for BI. Tim still likes to attend most networking events, and he insists on being the primary contact for the movie and music producers.

Recently, Tim had a stroke and was unable to work for one month. Tim is eager to make up for the time he was away from work. When Tim returned to work, Savina Latko, the highest rated agent at BI, suggested that she and Tim prepare contingency plan in case Tim has more health issues and is unable to return to work in the future. Required:

a) Provide three reasons organizations use contingency plans and explain why they are important.

b) Indicate whether BI should prepare contingency plan. Support your response with three risks specific to BI's operations.

Reference no: EM132689839

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