The fetal umbilical cord is wrapped around some part of the baby in almost half of all deliveries. Usually, that poses no particular problem.
After the baby’s head is out, should the cord be wrapped wrapped loosely around the neck you can easily slip it over the neck and out of the way before delivery of the rest of the baby. If it is wrapped tightly, you won’t be able to easily slip it over the head, and in that case, you’ll need to clamp and cut it before delivery of the rest of the baby.
If the nuchal cord issue is not resolved, delivery of the rest of the baby will put tension on the cord, sometimes enough to break it. Then, you’ll have two loose ends of severed cord, both actively bleeding, until you are able to retrieve them and clamp them. In the meantime, the baby can lose quite a bit of blood.
This video demonstrates the use of these interventions.