Cracking the code: The keys to a successful business impact analysis

Abstract

The business impact analysis (BIA) is a major component of risk management and business continuity planning. It is the process of assessing the impact over time of a disruption on the organisation’s people, products, services, and to its customers. This paper offers guidance on establishing and completing a comprehensive BIA that represents the organisation, department or process to achieve compliance and, ultimately, resilience. To remain competitive, organisations must examine and adapt their BIAs when circumstances change, whether internally or externally. This paper provides a formula to ensure the BIA is developed methodically. By considering organisational culture and standards, internal and external assessment requirements, and standardised analysis calculations, the organisation will create a BIA that closely reflects its environment and yet still provides scope for improvement. The paper also considers metrics and planning activities to support BIA design. By following this guidance in this paper, organisations will be better able to crack the BIA code and take a value-added approach to business continuity planning.