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Business Impact Analysis

Definitions:

Business Impact Analysis (BIA): Examines the potential result of disruption to key business functions and collects the information necessary to determine short-term and long-term recovery objectives. A BIA includes analysis of both operational and financial impacts that could stem from the loss of key business functions. The following negative outcomes should be considered as part of a BIA:

  • Personnel impacted (potential for outsourcing, overtime labour)
  • Lost or delayed sales
  • Regulatory fines
  • Financial and relationship penalties for not fulfilling contractual obligations
  • Customer dissatisfaction
  • Customer loss
  • Delay of new business plans

Business Function: An operation or process that is necessary to the ongoing success of an organisation. Examples of business functions include:

  • Customer service call centres
  • Print and web advertising plans
  • Maintenance of relationships with suppliers
  • Employee recruitment

Recovery Time Objective: The time within which a business function must be restored after a business interruption occurs in order to prevent irreversible damage.

For a Business Impact Analysis template, please email: info@sirelark.com

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