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What does business impact analysis mean?>>>>>>>>>>>>>>>>>>>>>>>>>>

The BIA is a systematic process for identifying and assessing the potential impact of a disruption to critical business operations as a result of a disaster, accident or emergency.

A BIA is an essential component of a company’s business continuance plan. It includes an exploratory component to uncover vulnerabilities and a planning component to develop mitigation strategies. The result is a business impact analysis report that describes the potential risks to the organization under review.

One of the basic assumptions behind BIA is that each component of the organization depends on the continued functioning of every other component, but that some are more important than others and require a greater allocation of resources following a disaster. For example, an organization may continue to operate more or less normally if the cafeteria has to close, but would grind to a halt if the information system crashed.

How is a BIA conducted?

A BIA is generally a multi-phase process that includes the following steps:

  • Gather information
  • Evaluating the information gathered
  • Prepare a report to document the results
  • Presenting the results to senior management

There are no formal standards for a BIA, and the methodology may vary by organization.

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