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Business Continuity > Importance of a Business Impact Analysis -By: Ron French, CBCP-

The main focus of any business continuity plan should be the emphasis on the company’s readiness to continue its primary business operations affected by a business interruption of any type, source, or impact. The first step in developing a sound and viable business continuity plan is the identification of an organization’s risks. This is conducted through a formalized risk management program to identify, control, and minimize the impact of known and uncertain risks. A Business Impact Analysis (BIA) is subsequently conducted after a risk assessment.

The importance of a comprehensive BIA as part of any viable business continuity plan cannot be emphasized enough. The BIA provides part of the foundation on which the organization’s BCP rests. A BIA ensures the rapid recovery and continuous performance of essential business functions through all circumstances in an emergency with the pre-identification of the right people, right resources, and right planning. Essential functions are those functions that enable an organization to provide vital services, and sustain its industrial / economic base during an emergency.

A BIA is the methodical, approach to examine, identify, and prioritize mission essential: (1) Functional processes and recovery time lines, (2) Vital hard copy and electronic records, (3) External and internal operational inter-dependencies, (4) Personnel requirements, (5) Office resources & supplies, and (6) data system requirements. The identification and prioritization of recovery time lines of mission essential business functions is a prerequisite for a viable business continuity planning program. A software enabled BIA can be more easily conducted, updated, and maintained with the BDA Global “Continuum” software than with any manual BIA methodologies.

A critical part of a solid business impact analysis is the identification essential functions that require vital inter-dependencies that are external to the organization such as vital supplies and utilities. This analysis also requires the review of internal inter-dependencies such as personnel and equipment support within the same organization. This analysis must ensure the proper execution, sequence, and recovery timing of essential business functions, operations, and support.

BIA data maintenance is critical to ensure rosters of essential and support employees, operational dependencies, resources, vital records, etc., are current. Failure to identify current essential functions and other BIA requirements will result in the inability to identify the vital requirements and resources needed to support essential functions in an emergency or disruptive event. BIA data should be reviewed on a regular basis to ensure it is current.

Posted by Gaston Boisson on Sep 23, 2009 at 11:51 am