Business Impact Analysis Template

Business impact analysis is one of the core elements of business continuity plan. Business Impact analysis aims at exploring vulnerabilities that can affect business continuity and helps in preparing a master plan that minimises risk of those vulnerabilities. Counting upon this analysis, organisations prepare their business impact analysis report which identify and categorise the organisation-specific potential risks.

Different component of a business process are interrelated. The logic behind business impact analysis is to identify the potential risks that have potential to affect the functionalities of multiple departments. Some components of a business might have more complexities compared to others. In case of a disaster, these components require higher funds to be restored. Business impact analysis quantifies the importance of separate components of a business and helps business to allocate separate funds for each component. Business impact analysis enables a business process to find out the components where restoration is costly and enables it to remain prepared.

Business impact assessment as a part of broader disaster recovery plan identifies costs related to recovery when there is a failure. The cost includes loss in cash flow, funds required for replacement of equipment, loss of profit, extra salary paid to clear the backlog etc. This analysis also helps in comparison related to allocation of fund. For example, rebuilding customer confidence is a much more costly affair compared to rebuilding cafeteria.

There are several Business Impact Analysis templates available which make your task of spotting out vulnerabilities, risks and threats easier.