Contingency plans are strategies developed to address potential future events or emergencies that could disrupt normal operations. These plans outline specific actions to take if certain risks materialize, ensuring that an organization can respond effectively and minimize negative impacts. For example, a business might create a contingency plan for a natural disaster like a flood or earthquake, detailing how to protect employees, secure assets, and maintain communication. By preparing for unexpected situations, organizations can enhance their resilience and ensure continuity in their operations.