business (noun, busi-ness, /ˈbɪznɪs/) impact (noun, im-pact, ˈɪmpækt/) analysis (noun, anal-y-sis, /əˈnæləsɪs/)
Definition: is a systematic analysis, a process of determining and evaluating the potential effects of the business’s exposure to an interruption of its critical operations in a result of an accident, a crisis, or a disaster. A business impact analysis is a crucial component of any business plan, which includes two major components: an exploratory one (which reveals and presents any potential vulnerabilities) and a planning one (which develops effective strategies in order to minimize the potential risks). BIA typically considers such potential risks and impacts as increased expenses, lost sales, regulatory fines, customer dissatisfaction, business plan delays, lost income, etc. It results in a business impact analysis report, which signifies the potential risks based on the specific field in which the business operates.
In a Sentence:
- Based on the recent business impact analysis, we are protected from the majority of significant risks thanks to our insurance.
- With the new management team, our business impact analysis turned out to be more detailed and realistic.
- In order to determine how soon we will be able to resume our normal daily operations, we need to conclude an urgent business impact analysis.
Synonyms and related words: business analysis, business plan, risk assessment, business impact analysis report, situation analysis
