It has come to the attention of the Managing Director, Tom Copeland, that due to the current economic climate, sales volume may be 20% below target this financial year. Tom is worried that this may severely impact profit projections. The company can accept as much as a 10% variance in profit projections; however, more than this could severely affect the company’s ability to pay obligations and invest. Reliable data to determine whether the risk has eventuated should be available by midway through the second quarter (Q2), when sales data for the company’s product are in.

You have also received the following feedback from team members:

• Full-time workers and salespeople are resentful of time wasting and distracting contract employees.
• Overtime not used but employees resentful of suggestion it might not be approved if needed.
• Training suited the needs of many sales team members but was not relevant to about half the team members.
• Sales team members were happy with the incentives program and tried hard to make sales in the third quarter (Q3); however, they were also resentful at the threatening tone of emails and soon lost enthusiasm.
• Effect of one-day training wearing off.
• Fifty percent of direct wages costs are attributable to short-term contract employees whose contracts have expired and who are no longer needed.
• Employees are concerned about lack of attention paid to wastage: water; electricity: paper; raw materials.
• Employees feel left out of budgetary decision-making in general.

The Managing Director would like you to submit a revised contingency plan and contingency implementation plan to bring income and expenses under more
effective control.

You must identify 3 risks (2 must be financial risks)  and develop a range of mitigation strategies for each of them 

At least 2 of all your recommendations must recommend alterations to the budget

Documents required to submit

• Revised Contingency Plan
• Revised Contingency Implementation Plan