What do you mean by Business Impact Analysis? (BIA)
Business Impact analysis is the process of determining the criticality and predicting the consequences of its disruption to business and associated resources required to ensure business continuity during and after a business disruption.
When do we need to perform Business Impact Analysis?
As per industry standard recommendations updating and performing a business impact analysis on an annual basis is important. But it totally depends on how the organization is changing and evolving.
Significance of Business Impact Analysis
BIA aids in response and decision-making in case of disaster events that may result in operational disruptions, resource allocation during non-operative periods, recovery plans. BIA is important to stabilize the business disruption.
Which teams are involved in performing a BIA?
The people involved in the BIA plan are the program sponsor and manager who collectively determine the in-scope for all the departments. Department leaders and SMEs should be present for individual interviews conducted for a risk assessment summary.
How do we perform a Business Impact Analysis?
There are 5 phases involved in BIA :
- Defining goals, scope and initiation of BIA
- Acquiring information from various sources such as users, timing, impacts, compliance or legal impacts.
- Analysis of the collected information
- Documentation of findings
- Presentation of the report to the management.