Business Impact Analysis

by ryan on March 5, 2017




Business Impact Analysis Process

 

Business impact analysis is a process used for determining the way in which various risks may affect a future business plan as well as certain specific business operations. Assuming that a business would work perfectly well and is financially solid, if some unforeseen events, whether internal or external in nature, affected part of the operation in a negative way, the entire organization may be compromised.

Business Impact Analysis

Business impact analysis is generally used as a part of business continuity planning (BCP) which is a carefully thought out process used to identify these risks in the first place.

Throughout the whole BCP process the company would analyze the way in which it can continue operations despite various adverse conditions such as earthquakes, floods threat or other local or global incidents and events.

Of course, it is also very important to assess exactly which events would influence the operation more so that the correct measures may be applied to minimize or perhaps to entirely avoid the effects that any unwanted consequences may have. Basically, once a threat or a risk is detected, the next step is to use business impact analysis to work out exactly how it would affect the continuity of the business plan.

Business Impact Analysis – Identifying Steps

Disaster recovery professionals then work to identify the best course of action that needs to be taken in order to counter or respond in

an efficient way to a specific threat or situation so that the negative impact may be minimized. They may under certain conditions modify business priorities by bringing to the forefront the most important issues so that a kind of dynamic balance may be obtained that would assist the operation in successfully exiting a crisis with minimal extra investment and maximal efficiency.

Questionnaires and even in-person interviews may be set up in order to gather as much valid information as possible for the efficient response to various internal or external threats. In certain cases, it may be a good idea to include questions regarding incident descriptions in the surveys.

These can involve situations in which for example data files have been lost, primary business processes have been negatively affected by a disaster or important staff personnel may be unavailable for any particular reason. The data gathered from the interviews can then be used in putting together an efficient plan that would help solve many crucial problems and assist the company in moving on.

Because of the serious implications that business impact analysis may have on the continual growth and development of the business plan and the organization itself, the process has to be taken very seriously. Even though putting together surveys and gathering information may be a tedious and at times troublesome task, the value of the process is essential in finding new plans and ideas that would be as accurate and efficient as possible.

Business Impact Analysis Conclusion

Gathering all the correct information and documenting all findings is also a crucial part of the pre-planning preparations. Simple, efficient and flexible plans can then easily be formulated and reviewed together with business unit leaders in order to put the company back on track and accomplish all the required goals.




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