A contingency plan is to cope with events whose occurrence you cannot predict timing and severity. It is often used in product development, where it can help to ensure that a project stays on track despite unforeseen setbacks. A contingency plan typically includes a range of possible courses of action, each designed to deal with a different type of event. For example, a plan might consist of steps to take in the event of a supplier failure, a natural disaster or a technical problem. By having a contingency plan, organisations can increase their chances of successfully developing new products.