Information assets comprise essential tools in business. Information serves to indicate the future of business. It further prevails on the ways through which a company can overcome externalities. Essentially, information assets have a great impact on a business structure. Business Impact Analysis (BIA) is an examination process that entails the establishment of assets, which can be used to overcome business challenges. It is an identification of the resources that are available to a business organization which can be used to mitigate disasters within the subject corporation. Business impact analysis involves several processes. To begin with, the development of an effective BIA entails the development of component priorities. It further entails the identification of component reliance and dependencies. It is also required, that the organizational personnel is made aware of their responsibilities in the recovery efforts.[“Write my essay for me?” Get help here.]
Methods for Establishing Component Priorities
The establishment of component priorities is a process that involves several stages. The first stage identifies business functions and processes. This is the determination of the functions that are conducted within the business. It describes the time duration that is taken to perform the particular function. Likewise, it involves the indication of the department that oversees the identified process (Taylor, 2013). Essentially, business functions and processes in component priorities explain the description of the activities in the business that are being assessed. They comprise a limited and specified area of an organization that is engaged. The business functions allow for the establishment of the ways by which the BIA is going to be conducted. It further allows for the determination of the BIA scenarios and components to be engaged in the analysis (Million, 2012). Some of the business functions include manufacturing, operations, research and development, finance, human resources and information technology.
BIA entail more than one component. To begin with, the exploratory component ensures that the vulnerabilities of the identify business processes and functions are identified. This involves the projection of the long-term and short-term risks that may occur in the execution of the pre-established business components (Million, 2012). The planning component in BIA entails the development of the strategies which can be employed to overcome the risks that may occur in the execution of the business processes. Unlike the exploratory component, the planning component allows for examination of methods through which the identified risk can be pre-empted. However, should the risk manifest itself, then planning component allows for the establishment of methods through which the impacts can be mitigated. Some of the business disruption scenarios include physical damage to a business building, restricted access to the business structure, the breakdown of the company’s machinery, utility outages such as power outage and the absenteeism of employees who play an indispensable role in the execution of the business processes. [Need an essay writing service? Find help here.]
The determination of the financial and service impacts of components that are not available should be ascertained (Jones, 2008). This is significant in the development of component priorities. Some of the financial and service impacts to consider include regulatory fines contractual penalties, increased overhead expenses, customer dissatisfaction and the postponement of new business plans. Essentially, these serve to indicate how the operations of the business process will be affected should the risk manifest itself. It addresses both the external and internal impacts that the company or business will suffer as a result of the risk (Taylor, 2013). The recovery time frameworks prevail on the amount of time that should be engaged in remedying the disruption of a business. It is an examination of the amount of time that the disruption may last. It further prevails on the best ways through which the time consumed can be reduced. The recovery time frameworks are a collection of initiatives that serve to indicate and reduce the amount of time spent on mitigating a business disruption.
Methods for determining component reliance and dependencies
Business impact analysis should address component reliance and dependencies. Component dependencies are those inputs required to enhance the efficiency of identified business function. Essentially, it describes the materials needed for the component to function. In an organizational structure, component dependencies allow for the efficient flow of work (Jones, 2008). The development of a BIA is enshrouded in the assumption that all parts of a business are dependent on each other. Therefore, every asset in a business is just as important as the next. The identification of component dependencies reinforces the disaster recovery plan. It further augments the entire analysis process. In the establishment of component dependencies, there is a need to determine the financial implications of all the organizations that collude with the business. There is further the need to determine the critical resources that will be required in the disaster mitigation processes.
An efficient BIA should be able to address the resources that will be employed in the recovery processes. Each resource should be quantified financially. In developing BIA, there is a need to estimate the financial costs that the business will be subject to in attempts to mitigate the impacts of a disaster. Some of the resources that require analysis comprise facilities, personnel, equipment, data files, vital records, and system components. The identified estimations on resource costs should be both realistic and within the financial limits of the subject institution. This enhances the efficiency of the strategies identified in the BIA.
Human resources play an indispensable role in the mitigation of disasters within a business. The development of the BIA starts with the recovery coordinator (Taylor, 2013). He is tasked with the duty of ensuring that the program is properly managed and effective in the long run. Other human resources that need to be addressed in the development of the BIA include the chief financial officer, the chief information officer, the risk management officer, the IT recovery team, the facilities manager, the security officer and senior management individuals from the affected business areas. In the recovery process, human asset is pivotal (Million, 2012). The human assets that are used in the recovery skill include human knowledge, skill, experience and talent. Individuals in the company who have had experiences with a similar disaster case in the past will provide a source of insight. Skilled and talented individuals play a big role in ensuring that all avenues are exhausted in the remedying of the disaster in the business. The human assets control the entire process. They ensure that the financial resources succinctly address the needs of the institution. Human assets serve to establish the success of the intervention processes. Lastly, human assets prevail on ways through which a similar disaster can be pre-empted in the future. [Click Essay Writer to order your essay]
In the development of the business impact analysis, it is pivotal that all members of the business organization are involved. This is to ensure that every aspect of the business is addressed in the BIA. Furthermore, a business organization ought to involve external personnel, who are separate from the business, to enhance the efficiencies of the identified intervention strategies. External professionals such as business consultants have the experience and skill that is essential in the remedying of a disaster. All personnel ought to be educated on the structure of the organization’s BIA. This is to ensure that they are all aware of their roles in the mitigation initiatives.
Jones, R. (2008, July 30). Building a Business Impact Analysis: The Keystone to Effective Business Continuity.
Million, W. A. (2012). Business Resilience Solutions. BRS-TEAM, 1-18. Retrieved August 31, 2016
Taylor, P. B. (2013). Business Impact Analysis for the City of Virginia Beach. Virginia: VB Communications & IT.