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For the play of this title, see The Contingency Plan. A contingency plan is a plan devised for an outcome other than in the usual (expected) plan.It is often used for risk management when an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments or businesses. contingency plan is a plan devised for an outcome other than in the usual (expected) plan.
A contingency fund is simply a reserve fund set aside to handle unexpected debts that are outside the range of the usual operating budget.This model of maintaining reserve money as protection against possible loss in the event of an emergency situation can be utilized in a number of situations. contingency fund is simply a reserve fund set aside to handle unexpected debts that are outside the range of the usual operating budget.