Business Impact Analysis Financial Loss

The business impact analysis business impact analysis or bia refers to the process of determining assessing and evaluating the potential effects of an interruption or stoppage of critical operations functions and processes of the business due to an accident emergency or disaster.

Business impact analysis financial loss. Operations may also be interrupted by the failure of a supplier of goods or services or delayed deliveries. Potential loss scenarios should be identified during a risk assessment. A bia often takes place prior to a risk assessment.

The bia focuses on the effects or consequences of the interruption to critical business functions and attempts to quantify the financial and non financial costs associated with a disaster. Business impact analysis and risk assessment are two important steps in a business continuity plan. What the business impact analysis is analyzing are the operational and financial impacts of a disruption of business functions and processes.

These include everything from lost sales and income delayed sales or income increased expenses regulatory fines contractual penalties to a loss of customers or their dissatisfaction and a delay of new business plans. A business impact analysis bia predicts the consequences of disruption of a business function and process and gathers information needed to develop recovery strategies. Business impact analysis is the process of figuring out which processes are critical to the company s ongoing success and understanding the impact of a disruption to those processes.

A business impact analysis bia template is used to evaluate and document the potential negative impact to an organization in the event of an emergency disruption. Inability to take and process new customer orders customers will buy product service from alternate source s opportunity loss from lack of future sales 6 financial loss categories in a bia cont d.