What defines a contingency plan in resource management?

A contingency plan is crucial in resource management as it serves as a framework for managing unexpected scenarios. This type of planning involves identifying potential risks and developing strategies to address them when they arise, ensuring that an organization can respond effectively and maintain operations during unforeseen circumstances. By preparing for various scenarios, a contingency plan helps minimize disruptions and preserves resources, allowing for a swift recovery when issues occur.

In contrast to the other options, which do not align with the concept of contingency planning, the correct answer emphasizes the proactive approach involved. Rather than striving for profitability or incurring unnecessary costs, a contingency plan is about resilience and adaptability in the face of challenges. It is not a disregard for unexpected events; rather, it is a structured way to anticipate and manage them effectively.