Contingency is the ability to avoid a future event, incident, or circumstance that cannot be predicted without certainty.
Contingency is usually estimated as a percentage, an example may be a capital project that has a 15% contingency for unforeseen expenses. Understanding how to handle such incidents through risk analysis and incident planning is key to successfully ensuring a project’s success. It can also be translated to information systems remaining online in the midst of critical operations. Applying a risk percentage to a critical information system is next to impossible due to potential lives at stake.
The term Contingency Planning in the medical field ties to such critical processes and is a requirement of HIPAA compliance and it is not based on any hard and fast numbers. It is a component that directly ties to complex continuity planning including business continuity (BC) and disaster recovery (DR) metrics that are difficult to assess independently.