A business impact analysis (BIA) is a process that identifies and assesses the effects that accidents, emergencies, disasters, and other unplanned, negative events could have on a business. The BIA (sometimes also called business impact assessment) predicts how a business will be affected by everything from a hurricane to a labor strike1.
One of the data that would be used when performing a BIA is the expected costs for recovering the business. This data can help to estimate the amount of resources and funds that would be needed to restore the normal operations and functions of the business after a disruption. The expected costs for recovering the business can include:
The costs of repairing or replacing damaged or lost assets, such as equipment, inventory, or facilities
The costs of hiring or training additional staff, or outsourcing some tasks or services
The costs of implementing alternative or backup systems or processes, such as cloud computing or manual procedures
The costs of communicating and coordinating with customers, suppliers, partners, regulators, and other stakeholders
The costs of complying with legal or contractual obligations, or paying fines or penalties
The costs of mitigating or preventing further losses or damages, such as insurance premiums or security measures23
The expected costs for recovering the business can help to determine the priority and urgency of the recovery activities, and to allocate the available resources and funds accordingly. The expected costs for recovering the business can also help to evaluate the cost-effectiveness and feasibility of the recovery strategies and options, and to justify the investment in the business continuity planning and management4.
The other options are not the data that would be used when performing a BIA, but rather the data that would be used for other purposes or processes. A cost-benefit analysis of running the current business is a data that would be used to compare the advantages and disadvantages of different business decisions or alternatives, such as launching a new product or service, or expanding to a new market. A cost-benefit analysis can help to assess the profitability and viability of the current business, but it does not measure the impact of a disruption on the business5. A cost of regulatory compliance is a data that would be used toestimate the amount of resources and funds that would be required to meet the rules and standards set by the authorities or agencies that govern the business, such as laws, regulations, or policies. A cost of regulatory compliance can help to ensure the legality and accountability of the business, but it does not measure the impactof a disruption on the business. A projected impact of current business on future business is a data that would be used to forecast the potential outcomes and consequences of the current business activities or strategies on the future business performance and growth, such as sales, revenue, market share, or customer satisfaction. A projected impact of current business on future business can help to plan and optimize the future business, but it does not measure the impact of a disruption on the current business. References =
Business Impact Analysis | Ready.gov
Business Impact Analysis Toolkit | Smartsheet
Business Impact Analysis (BIA): Prepare for Anything [2023] • Asana
How To Conduct Business Impact Analysis in 8 Easy Steps - G2
Cost Benefit Analysis - ISACA
[Regulatory Compliance - ISACA]
[Impact Analysis - ISACA]
[CRISC Review Manual, 7th Edition]
