You can instruct QTP to recover unexpected events or errors 
that occured in your testing environment during test run. 
Recovery scenario manager provides a wizard that guides you 
through the defining recovery scenario. Recovery scenario 
has three steps 
1. Triggered Events 
2. Recovery steps 
3. Post Recovery Test-Run 

the answer given by sridhar is right, but let me explain 
breifly,
see recovery scenario manager is used to handle unexpected 
events or errors that occur during test run.
so for this inorder to over this problem., we have a 
recovery scenario wizard which is available in QTP tool. 
where the main objective is to 
1) if any event or error occurs--"how to handle them?" i 
mean v can define easy steps when a pop window is displayed 
in between a test run then we instruct QTP how to identify 
that particular popup 
2)  As soon as identifying what to do next? supressing that 
particular popup window is the next step. so we ill define 
some steps to supress that particular pop up window.
3) and now the third level,.. ie, post recovery when an 
error or a popup window is identified, and supressed 
successuflly the next steps are nothing but post reovery 
steps, in other words instructing QTP whether to stop the 
test run or to move on to next step, or to move on to next 
iteration etc,... save the recovery scenario with ".qrs" 
extenstion and associate the recovery scenario to the QTP 
tool (file-->Test settings-->recovery tab---> add the 
recovery what ever we have saved and run the test. 
any doubts regarding recovery u can raise