Many people wonder why it’s necessary to perform business impact analysis (BIA) when they’ve already invested a large amount of time on a risk assessment. The answer is simple: because the purpose of a BIA is different, and wrong results could incur unnecessary expenses or create inadequate business continuity strategies. To that end, let’s take a look at five tips for successful business impact analysis.
Five tips for successful business impact analysis:
- Treat it as a (mini) project: Define the person responsible for BIA implementation and their authority. You should also define the scope, objective, and time frame in which it should be implemented.
- Prepare a good questionnaire: A well structured questionnaire will save you a lot of time and will lead to more accurate results. For example: BS (British standard) 25999-1 and BS 2599902 standards will provide you with a fairly good idea about what your questionnaire should contain. Identifying impacts resulting from disruptions, determining how these vary over time, and identifying resources needed for recovery are often covered in this. It’s also good practice to use both qualitative and quantitative questions to identify impacts.
- Define clear criteria: If you’re planning for interviewees to answer questions by assigning values, for instance from one to five, be sure to explain exactly what each of the five marks mean. It’s not uncommon that the same event is evaluated as catastrophic by lower-level employees while top management personnel assess the same event as having a more moderate impact.
- Collect data through human interaction: The best way to collect data is when someone skilled in business continuity performs an interview with those responsible for critical activity. This way lots of unresolved questions are cleared up and well-balanced answers are achieved. If interviews are not feasible, do at least one workshop where all participants can ask everything that is concerning them. Avoid the shortcut of simply sending out questionnaires.
- Determine the recovery time objectives only after you have identified all the interdependencies: For example, through the questionnaire you might conclude that for critical activity A the maximum tolerable period of disruption is two days; however, the maximum tolerable period of disruption for critical activity B is one day and it cannot recover without the help of critical activity A. This means that the recovery time objective for A will be one day instead of two days.
More often than not, the results of BIA are unexpected and the recovery time objective is longer than it was initially thought. Still, it’s the most effective way to get you thinking and preparing for the issues that could strike your business. When you are carrying out BIA make sure you put in the effort and hours to do it right. Looking to learn more about business continuity? Contact us today.