A Contingency Plan and a Mitigation Plan are both proactive risk management measures designed to manage and prepare for identified risks, but they serve different functions:

Contingency Plan
What it is: A contingency plan is a predetermined set of actions or procedures that an organization would implement if a specific identified risk became a reality. In other words, it’s your “Plan B” in case something goes wrong.

The purpose of a contingency plan is to reduce the impact of a risk on operations, goals, or objectives. It is about having a backup plan that can be quickly activated to respond to a risk event.

When Enabled: Enabled only when the risk event occurs. The contingency plan is dormant until then.

Content: Typically outlines the actions to be taken immediately prior to, during, and after the risk event. It may contain elements such as emergency response, communication procedures, resource allocation, and timelines.

For example, in an IT project, a contingency plan for a potential system failure could outline steps to switch to a backup system, notify users, and resolve the issue.

Mitigation Plan
What it is: A mitigation plan is a set of steps taken ahead of time to reduce the likelihood or impact of a risk occurring.

The goal is to eliminate or reduce the risk’s probability or impact before it becomes an issue. This is a proactive rather than a reactive measure.

When Activated: Takes effect as soon as the risk is identified and remains active to either reduce the likelihood of the risk occurring or to minimize the impact of the risk if it does occur.

Proactive steps that are integrated into the project plan or operational procedures are included in the content. Specifies risk-reduction actions, responsibilities, and timelines.

A mitigation plan for a potential system failure in an IT project might include regular system health checks, the implementation of high-availability configurations, and continuous monitoring.