Examples identifying contingencies

Figure 5-17. Identifying contingencies. Examples 1 and 2 show the steps for handling contingencies.

These are actions that are preplarmed and are set in motion as soon as the risk is identified. Certain resources are identified ahead of time in contingency planning and they have to be available at short notice when a disruption occurs. Having "back up" suppliers is an example of contingency planning. 

If the yields are accepted without full-scale testing, questions can and should arise as to how much contingency exists in the yields (since after all, they were obtained by correlations of similar coals, or perhaps by small-scale tests for your coal, for example). For at least one study, initially presented yields of this sort were found to represent a conservative case and upon request, yields were revealed that were closer to licensor expectations with no contingency. Some design contingency must be provided, but to do this intelligently, any yield contingency must be identified. 

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