No matter the size of your company or how long it has been in the market, it will never be prepared for a crisis unless risk analysis is done comprehensively and constantly monitored.
A very important tool that complements this analysis is the Business Impact Analysis, or BIA, an essential technique for Risk Management and ensuring the continuity of an organization’s business.
The good news is that the Business Impact Analysis is one of the new features that will be available in version 10 of Suite SA, making the management of your company even more complete!
What is BIA Analysis?
Business Impact Analysis (BIA) is a tool capable of identifying and assessing the effects of business interruptions. Additionally, it assists in defining goals and contingency recovery strategies to mitigate losses and restore normalcy as quickly as possible.
Its implementation allows managers to determine and evaluate the potential effects that an interruption, even if resulting from minor factors, can have on critical business activities.
It also helps understand the impacts, as mentioned earlier and establish tolerance for possible work interruptions, indicating the needs and minimum infrastructures for contingency actions, keeping vital processes in continuity.
It’s a dynamic process that should accompany market and business transformations; therefore, the plan should be regularly reviewed and updated or whenever significant changes occur in the processes.
In summary, the BIA’s main objective is to provide information and insights to help companies make data-driven decisions.
Advantages of the method
The main advantage is to prepare your business for adverse situations that may cause unplanned downtime or even crises.
However, it also contributes in various ways, such as:
– Assists in prioritizing activities that are part of the company’s core business, making it easier to select the essential sectors and plans for the business. Some areas require more attention and investment because the impacts on them can generate significant losses or amplify risk scenarios.
– Considering unforeseen events in operations, Business Impact Analysis can include emergency plans, organizing a roadmap that will assist in decision-making if events occur.
– The analysis is the basis for risk assessment, therefore, it is the most suitable document for conducting a detailed analysis of risks and impacts.
– Maps and identifies vulnerabilities of the company in general and specifically, covering areas and operations. By recognizing the organization’s weaknesses, efficient recovery methods become possible to keep the business running smoothly.
– By using BIA, responses to unforeseen situations become faster, as they will be properly identified. As a result of this mapping, productivity has a positive impact, possibly leading to an increase.
Risk Management or BIA?
The functionalities and objectives of both can easily cause confusion.
However, it’s worth remembering that Risk Management aims to identify, assess, manage and monitor the risks that can affect the organization as a whole or specific parts.
Business Impact Analysis (BIA), on the other hand, is an analysis of business impact, aiming to identify and assess the effects that an adverse event can have on the organization’s critical processes.
Both are essential in the Business Continuity Management process. Risk Management contributes to the prevention and minimization of risks, while BIA assists in defining contingency strategies necessary to maintain business continuity in case of interruptions.
In practice, Risk Management will identify, assess, manage and monitor the risk of fire in an organization, for example. While BIA will assist in defining contingency strategies in case the fire actually occurs, determining what will be necessary to maintain business continuity after losses or disruptions.
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In Suite SA 10, Business Impact Analysis (BIA) is one of the new solutions offered. With a simple and intuitive interface, it allows the association of processes from the Risk Manager module, alteration of previously registered standard criteria, among other possibilities.
The solution aims to contribute to a comprehensive risk analysis of the organization, centralizing its management tools.
Want to learn more about our solutions? Visit our website!
Author:
Bianca Wermann
Journalist, Communication and Marketing Analyst at Interact Solutions
