Notification: Notification: Visit our COVID-19 resource center - Learn More >

What is a business impact analysis?

When it comes to business continuity planning, it’s clear that the business impact analysis (BIA) is an essential component of your plan. But what exactly is a business impact analysis?

Simply put, a business impact analysis is a thorough, methodical process for analyzing the impact of interruptions on the daily operations of your business.

A business impact analysis will:

  • Identify all of your business functions
  • Understand how critical each process is to the healthy operation of your organization
  • Show the dependencies critical processes have on other processes and resources
  • Explore the type and severity of impact a disruption to your processes
  • Gauge the amount of time your organization can go without a given process
  • Outline the resources required to recover processes to a minimum level within the maximum allowable downtime
  • Prioritize the allocation of recovery activities and resources in advance of a potential disruption
  • Create a recovery strategy

Once you’ve completed your business impact analysis you will have a solid foundation for the rest of your business continuity plan.