| Business Impact Analysis | ParkinsonHowe

Business Impact Analysis

The objectives of a business impact analysis is to understand how quickly each critical business activity needs to be recovered. With this information we can guide and develop recovery strategies.

The BIA should contain:

  • Identify the key dependencies for each critical business activity and identify associated risks for each asset
  • Assist in better understand the impacts of disruption and determine the maximum acceptable outage of a department or location
  • Determined the minimum level of activity and the recovery objective of each department or location
  • Determine the whether the supply chain for the department or location is key to the recovery
The BIA review is essential to ensure that sensible recovery time objectives are set for each activity/process. If recovery time objectives are set too tight, it can result in inefficient and excessive recovery strategies. It is also important that the recovery time objectives are consistent with one other, so that activities are prioritised and resources allocated efficiently.

Our approach to this task is review the intelligence gathered from those who know the organisation best – its managers and employees.

As part of the BIA, we will review the Continuity Requirements established from the BIA. The CRA should have collected the information on the resources required to resume and continue the business activities to support the organisation’s objectives and obligations. It should have provided:

  • Resource information from which an appropriate recovery strategy can be determined;
  • Identified resource requirements resulting from activity dependencies that exist both internally and externally.
Understanding continuity requirements is a key stage in the life-cycle. It confirms to an organisation what they need and when they need it, to keep the business running. Our experience shows that for some functions increased resources may be required or in some cases alternative suppliers. It is therefore vital to get the schedule of requirements correct.