What is the key focus of a business impact analysis?

The central focus of a business impact analysis (BIA) is to assess the potential effects of disruptions on business operations. This process involves identifying critical business functions and evaluating how various types of interruptions—such as natural disasters, cyberattacks, or supply chain failures—could impact those functions. The BIA helps organizations understand the consequences of disruptions, which in turn allows them to develop strategies for minimizing risks, prioritizing recovery efforts, and ensuring business continuity.

By determining which operations are most vulnerable and which have the greatest impact on profitability and service delivery, a BIA facilitates informed decision-making regarding resource allocation and risk management planning. This foundational understanding is crucial for creating robust disaster recovery and business continuity plans that protect both the organization and its stakeholders.