Executives and entrepreneurs use Business Impact Analysis (BIA) to estimate the effects of operational setbacks on their businesses.
Business leaders use BIAs to evaluate a wide range of causes and effects: BIA is essential to business continuity planning and facilitate long-term business operation strategies.
A business impact analysis is used to predict the impact that an interruption to a business function might have.
It varies from a risk assessment in that a risk assessment is generally conducted to identify threats whereas a BIA explains the impact event can have on a business' operations.
An analysis is conducted by gathering information, evaluating the findings, creating a report and presenting findings to business management.
A template, usually in spreadsheet format, can be used to help collect data in a manageable way. We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities.
Now that you understand the basics of a business impact analysis, let's lay out an example in an easy-to-follow template that you can adapt for your own business needs.
Let's look at the case of a small business and fill in some possibilities to consider.
This is a more narrative-type format of the business impact analysis template in spreadsheet form.
Once assimilated, the report can be presented to business leadership so that recovery plans can be implemented.