Business Impact Analysis Essay Example | Topics and Well Written Essays - 1750 words

Business Impact Analysis - Essay Example In this scenario, BIA is based on a critical assumption and that is every area and task of a company depends on the continuous working of every other task; however some tasks are more critical and important than others as well as need a greater investment following a failure. In addition, the BIA also determines the expenditures associated with losses, for instance substitution of equipment or machinery, loss of cash flow, loss of income, funds paid to pull alongside a backlog of work, and so on. Moreover, a BIA report also determines the significance of business tasks and processes as well as recommends suitable financial support for actions to look after them. In this scenario, BIA determines the possibilities of breakdowns or losses in terms of their influence on business revenue, safety and security, marketing and advertising, compliance, legal aspects and quality assurance. Hence, BIA can be considered as the backbone of the whole business continuity plan or, as a minimum, it sh ould be managed and controlled in the approved manner. In fact, a well-planned and well-executed BIA can formulate the differentiation between a strong, completely developed business continuity plan, and an ordinary one. Methods for Establishing Component Priorities A company can prioritize its functions and components on the basis of their criticality. In this scenario, critical applications and systems are used in the processing of sensitive information. In addition, the applications and systems that an organization uses to process sensitive information can be prioritized as: Critical: Critical business applications and systems are believed to be the highest priority functions for the reason that they have highest impact on an organization’s potential and processes for recovery.... sensitive information can be prioritized as: Critical: Critical business applications and systems are believed to be the highest priority functions for the reason that they have highest impact on an organization’s potential and processes for recovery. Additionally, human resources of an organization are fully aware of these critical processes within their department. In addition, the solution is to collect all necessary information and build up a complete look at their critical applications and process from the company’s point of view. For instance, they should determine that what applications and processes must be present for their organization to run a business? Hence, these processes must be recovered to sustain as close to regular operation as possible. In this scenario, the highest permissible time limit is determined in hours (Pabrai, 2013; ttgtMedia, 2007). Essential: Every organization has some functions which lie between critical and important, hence for these business functions organizations can decide to make use of a central kind that can be acknowledged as â€Å"vital† or â€Å"essential.† Though, it is difficult to distinguish between critical and vital functions but an organization can choose that certain processes are completely critical and others are very significant and they should be handled soon after the critical processes. In this scenario, vital business processes can comprise several business aspects such as payroll, which is not a critical business function in terms of being capable of getting the business support and operating right away however these functions can be significant to the organization’s capability to work further than the disaster recovery phase. These business processes should be recovered immediately when resources