Business Continuity and Disaster Recovery - Business Impact Analysis

Business impact analysis is a critical part of the business continuity planning process. This step quantifies data and gets into the real world issue of potential losses that can negatively impact your business. It is used to understand the most important impacts and how to best protect your people, processes, data, communications, assets and the organization?s goodwill and reputation.

Organizations often think in terms of disaster recovery. Business continuity and the business impact analysis is more focused on keeping the business up and running and less focused on recovery after a disaster. The business impact analysis also is not focused only on the potential disasters, but on all potentially critical discontinuities. Key elements of the Business Impact Analysis are to identify critical business functions, establish the maximum acceptable outage time for each of these functions and then to determine the impact of not performing those functions. This can be measured against regulatory, legal, financial, operations or customer service requirements.

Once the adequacy of security and controls is evaluated and critical business functions and outage times are defined, the business continuity planner needs to develop an understanding of the probability of threats factored by the severity or impact and to start to develop a cost benefit analysis of the largest impact and highest probability threats.

It?s virtually impossible to create an absolute value and prioritization of threats and impacts. Generally, a relational system is used to drive out the key priorities. Often, each threat is evaluated according to its probability and assigned a 1, 5 or 10 rating. Then, each threat is evaluated according to its impact on critical business functions and on the business overall. For example, a discontinuity in a critical business function of less than one hour might receive a value of 0. A discontinuity of one to eight hours might be ranked a 1, eight to twenty four hours might be ranked a 2 and over 24 hours might be ranked a 3. Obviously, these rankings need to be developed on a company specific basis. Probability factored by impact creates the relational prioritization list.

This approach to risk evaluation and control allows management to start to quantify the risks and potential impacts on the organization in a thoughtful and analytical way. This results not only in higher quality decisions, but also provides an audit trail that demonstrates that management is paying attention to its risk management responsibilities. These responsibilities might be established by regulatory or legal bodies, demanded as a contractual commitment by customers or simply expected by shareholders as sound and prudent management. The key corporate goals are to protect people, protect assets, protect data and to protect the brand and reputation of the organization.

About The Author

Robert Mahood has significant technology and management experience in data communications, internet, storage, disaster recovery and data recovery. He is currently the president of Midwest Data Recovery. www.midwestdatarecovery.com

bmahood@midwestdatarecovery.com, 312 907 2100 or 866 786 2595

More Data Recovery Articles

Business Continuity and Disaster Recovery - Selecting A Business Continuity Strategy
The risk analysis and business impact analysis have identified risks to key business functions. Also, the potential impacts and probabilities of these risks as well as the costs to prevent or mitigate damages and the time to recover will have been established.

Business Continuity and Disaster Recovery - The Business Continuity and Disaster Recovery Plan
Essentially, the plan addresses the who, what, where, why and when of recovery. Goal number one is to reduce the risk profile of the business.

Business Continuity and Disaster Recovery - Reducing Your Risk Profile
Like all plans, there is an ultimate goal to achieve. The goal in a business continuity plan is simply that: to continue your business in the face of a disaster or a disruption.

Data Recovery
Every person who uses a personal computer will eventually face the challenge of data recovery. Computer hardware and software can be temperamental from time to time.

Learn How To Make Data Backup Over The Internet!
Why should you backup your data on the Internet?There are several reasons.* The backup is located at a secure place for away from your computer.

Computer Data Recovery Options
Losing files on your computer can be a frightening experience if the files are of importance to you personally or professionally. Computer data recovery techniques include the most simple of operations, like simply retrieving an accidentally deleted file, to very complex file retrieval procedures that only professionals should attempt to do.

Do I Really Need To Backup?
Okay, computers a machine, right? Okay, maybe not yours. You have this special relationship, but that a subject for another article.

Comparing Data Recovery Software
Software programmers recognize the importance of data files, and thankfully, they have been able to create products that demonstrate their understanding of how often people accidentally delete or lose important data. Thanks to software programmers and development companies, people have a variety of data recovery software programs available to purchase in the event they've lost vital data.

Want To Beat The Odds? Disaster Recovery Planning is Essential
Statistics show two out of five businesses go out of business within five years of experiencing a major disaster.These statistics are staggering.

Are The Words Business Continuity and Disaster Recovery Planning Rolling Off Your Lips?
It might be more fun to talk about those free online business cards that are saving the company money, or those nifty designer business checks that are helping to solidif your branding efforts at the next staff meeting, but what really should be rolling off your lips are the words ?business continuity and disaster recovery planning?. Nothing is more important to a company than having a comprehensive recoveery plan in place prior to when disaster strikes.