Business Impact Analysis (BIA) Example

1. Introduction

• BIA Title: BIA for IT Services
• Date of Analysis: November 10, 2024
• Purpose: The purpose of this BIA is to assess the potential impacts of disruptions to the IT services of the organization, identify critical business functions, and establish priorities for recovery to ensure business continuity.

2. Business Functions Overview

• Key Business Functions:
• IT Infrastructure Management
• Network Operations
• Data Backup and Recovery
• Application Support
• User Help Desk Services
• Function Owner: Each function is overseen by the IT Manager, with individual team leads responsible for specific functions.

3. Impact Assessment

• Financial Impact:
• IT Infrastructure Management: A disruption could lead to financial losses due to halted business operations and penalties for failing to meet service level agreements (SLAs). Estimated loss: $100,000 per day.
• Network Operations: Loss of connectivity could lead to halted business activities and reduced productivity, resulting in an estimated loss of $75,000 per day.
• Operational Impact:
• Data Backup and Recovery: A failure in data backup could lead to loss of critical data, causing delays in project timelines and impacting operational continuity.
• Application Support: Disruptions could lead to unavailability of critical applications, affecting departments dependent on those applications for day-to-day operations.
• Reputational Impact:
• User Help Desk Services: If help desk services are unavailable, it could lead to customer dissatisfaction, reduced employee morale, and damage to the organization’s reputation.
• Legal and Regulatory Impact:
• Data Backup and Recovery: Data loss could lead to non-compliance with data protection regulations, resulting in potential legal action and fines.

4. Data Collection

• Data Sources: Data was collected through interviews with IT department heads, surveys conducted with department heads of other business units, and a workshop involving key stakeholders.
• Stakeholders Involved: IT Manager, Department Heads, Compliance Officer, Business Continuity Planner.

5. Impact Severity and Recovery Requirements

• Impact Severity:
• IT Infrastructure Management: High impact if unavailable for more than 4 hours.
• Network Operations: Medium impact if unavailable for up to 1 day; high impact beyond that.
• Data Backup and Recovery: High impact if disrupted for more than 1 hour.
• Recovery Time Objective (RTO):
• IT Infrastructure Management: 4 hours
• Network Operations: 8 hours
• Data Backup and Recovery: 1 hour
• Recovery Point Objective (RPO):
• IT Infrastructure Management: 30 minutes
• Data Backup and Recovery: 15 minutes

6. Prioritization of Business Functions

Criticality Ranking:

1. Data Backup and Recovery
2. IT Infrastructure Management
3. Network Operations
4. Application Support
5. User Help Desk Services

Priority for Recovery:

• 1st: Data Backup and Recovery
• 2nd: IT Infrastructure Management
• 3rd: Network Operations

7. Recovery Strategies

Recovery Actions:

• IT Infrastructure Management: Establish redundancy by implementing backup servers in an off-site location.
• Network Operations: Partner with a third-party service provider to provide temporary network connectivity in case of disruptions.
• Data Backup and Recovery: Implement automated backup systems with real-time data replication.
• Resources Needed: IT personnel, backup hardware, third-party network providers, and cloud storage.

8. Roles and Responsibilities

• BIA Team: IT Manager, Business Continuity Planner, Network Team Lead, Data Protection Officer.
• Process Owners: IT Manager for IT Infrastructure, Network Team Lead for Network Operations, Data Protection Officer for Data Backup.
• Stakeholders: Heads of all business units, Compliance Officer, Senior Management.

9. Documentation

• Impact Analysis Summary: The impact of disruptions on IT services could lead to significant financial losses, operational halts, and regulatory penalties. Recovery plans are prioritized based on impact severity and recovery requirements.
• BIA Report: The comprehensive BIA report includes identified critical functions, impact assessments, RTOs, RPOs, and recovery priorities.

10. Review and Update

• Review Frequency: The BIA will be reviewed annually or whenever significant changes occur in IT infrastructure.
• Update Log: Last updated on November 10, 2024, to reflect changes in recovery priorities and new IT infrastructure.

11. Conclusion

• Summary: The BIA for IT Services identified key areas that require immediate attention in case of disruptions, such as Data Backup and IT Infrastructure. By defining RTOs and RPOs, the organization is better prepared to recover from incidents and ensure business continuity.