Contingency Funding Plans

Contingency Funding Plans are strategies that organizations, particularly financial institutions, create to ensure they can access funds during unexpected situations, like economic downturns or sudden cash shortages. These plans outline ways to secure money quickly, whether through loans, selling assets, or tapping into emergency reserves. Essentially, they prepare businesses to manage risks related to cash flow and maintain stability, ensuring they can continue operations and meet obligations even when faced with financial challenges. Having such a plan is crucial for resilience and maintaining trust among clients and stakeholders.