Business Impact Analysis (BIA)

Definition(s):

A method of identifying the effects of failing to perform a function or requirement.

Source: FCD-1

A Process of analyzing activities and the effect that a business disruption might have on them.

Source: BCI

Business Impact Analysis or BIA is a phase within the BCM planning process. It is the process of analyzing the effect of interruptions to business operations or processes on all business function.

Note (1): The BIA should identify all critical business functions, qualify and/or quantify losses as a result of such interruptions, determine the tolerable downtime and minimum resources needed to recover the critical business functions.

Note (2): Typically, for the first BCP project the organization is involved in, all business units should be involved during the BIA. For subsequent BCP projects and if there are no significant organizational changes, then only business units with critical business functions will be involved.

Source: BCM Institute

Business Impact Analysis (BIA) is a process used to identify and assess the potential effects of an interruption to business operations as a result of a disaster, accident, or other unforeseen event. It is used to assess the potential financial, operational, and reputational impacts of a disruption, as well as to identify and prioritize the critical activities, processes, and systems that must be recovered in order to maintain operations.