In business or in daily life, when dealing with the things we know, we can plan accordingly and expect them to go asplanned. However good business or personal plans may be, they can sometimes41because of unexpected eventsor circumstances, which are often called contingencies. Success sometimes reflects the number of calculated risks we arewilling to take, both personally and professionally. That is why contingency planning is so important for it allows activerisk management and42preparation rather than reactive decisions when faced with an emergency, which can resultin failure.In business a contingency, either externally or internally, is generally negative, and it may influence the financialhealth, professional image, or market share of a company.43, such unexpected development can likewise be asurprising windfall, for example, a giant order. Anything44that upsets a company’s normal operation can hurt thecompany regardless of the possibility that the interruption is a direct result of a windfall. It should, therefore, be a normalpart of the business planning process to45potential threats and opportunities. Seeing to this can ensure thatspecific contingency plans and resources are well-prepared to deal with them.