Financial Contingency is a planning process used by businesses to prepare for unexpected and usually negative events such as natural disasters, economic downturns, or product recalls. The goal of financial contingency planning is to ensure the company’s financial resources are sufficient to handle these situations. It involves assessing the potential risks, creating a plan to address them, and taking steps to reduce their impact on operations. By preparing for the worst-case scenario, businesses can maintain continuity and protect their profits when disaster strikes. In short, Financial Contingency is your business’s life insurance policy — it’s important to have one in place!