In developing a budget and finance plan, a structured approach should be established for significant reflection about how the agency will manage a resource disruption or an event that requires substantial unplanned resources, towards establishing practices and protocols for early risk detection and systematic crisis response. For example, human services are counter-cyclical, meaning the demand on them grows at the same time as resources become harder to come by. Anticipating the impact of a major recessionary event or climate enables early engagement of stakeholders towards the development of recession budgets, rainy day funds, risk-sharing mechanisms such as risk corridors and emergency funds.
In the event of a trauma to the system and the demands placed upon it, such as a natural disaster, business continuity plans and resources should already be in place as well as protocols to track and otherwise account for crisis-related spending decisions.
Having these plans already in place is of major benefit when the trauma is already unfolding. Working proactively to manage
financial risks also builds credibility with those stakeholders in advance of the resource disruptions or demand spikes themselves