Optimizing Your Business Impact Analysis (BIA)

Optimizing Your Business Impact Analysis (BIA)

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Introduction Experience includes: Over 25 years in business continuity, emergency management and public safety software and consulting.

Senior Consultant for FEMA Integrated Public Alerts and Warnings (IPAWS) and Wireless Emergency Alerts (WEA) program Senior Fellow: Center for Digital Government

Patent Holder: Emergency Notification Technology MBA: Vanderbilt University BBA: Harding University

Lorin Bristow Vice President, Public Sector Software

Current Position: Vice President, Public Sector Software, Agility and BOLDplanning © 2022 Agility Recovery all rights reserved

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Agenda • The Basics: What is a Business Impact Analysis (BIA)?

• Why do a BIA

• Elements of a BIA • Optimization Tips

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What is a BIA and why should we conduct one?

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What is a BIA?

Business Continuity Management Lifecycle YOU ARE

HERE

Elements of BIA

Presenting Results

Initiation

BIA

Analysis

Establishing the Process

Discovery

What is a BIA? A Business Impact Analysis (BIA)...

• • • • •

Evaluates effects of events on operations over time An inventory of critical functions and/or processes Prioritization of all functions & their interdependencies Defines key recovery metrics (RTOs, RPOs, etc.)

Captures required resources (internal and external)

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Why do a BIA? Why do a BIA? • Identifies and prioritizes the processes key to survival

• Aids in resource allocation • Justifies the spend on recovery strategies • Helps with other areas of the BCM lifecycle

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What are the elements of a BIA?

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Elements of BIA

Presenting Results

Initiation

BIA

Analysis

Establishing the Process

Discovery

Elements of BIA

Presenting Results

Initiation

BIA

Analysis

Establishing the Process

Discovery

What should we do in the “initiation” and “process establishment” phases of the BIA?

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Elements of a BIA Initiation (developing the mindset) • Management Support and Involvement • Form BIA project team & have an executive sponsor • Define goals, objectives, timeframes and scope

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Secure Leadership Support • Not just "buy-in"

• Deep commitment • Technique: Let them wrestle with the possibilities

Optimization Tip:

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Elements of a BIA Establishing the process • Agree to how data will be gathered • Time commitments for departments / deadlines

• Budget time for interviews or workshops – allot enough time • Set expectations for follow up

• Set metric standards • Establish relevant Impact categories and criteria

• Consistent recovery time objectives in line with business objectives

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Calculate an RTO If the process was unavailable what would be the impact?

3. Customer Impact Operational Efficiency - Value of rework/work around and additional expenses incurred during an Incident, ie, overtime, temps - How difficult will it be to catch up on the backlog of work?

1

Low

2 Medium

2. Operational Impact

3 High 4 Critical

Less than $25,000

>$25,000 - < $50,000 >$50,000 - < $100,000 > $100.000

Financial 1

1. Financial Impact

Low

Negligible or no effect on earnings, capital, or financial loss/delay

2 Medium

Marginal effect on earnings, capital, or financial loss/delay

3 High

Potentially large effect on earnings capital or financial loss/delay

4 Critical

Significant effect on earnings, capital or financial loss delay

Elements of BIA

Presenting Results

Initiation

BIA

Analysis

Establishing the Process

Discovery

What can we do to maximize data collection success?

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Secure Employee Support • Managers and team members will likely be responsible for inputs

• Educate them on the basics: • What

Optimization Tip:

• Why • How

• When

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Elements of a BIA Data Collection / Gather Information Gathering the information (data collection) • Create a consistent questionnaire for everyone

• Set up BIA workshops and/or interviews • Quantify as much as possible – gather FACTS • Quantify responses OVER TIME (Impacts/RTOs)

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Focus on Data Collection • Ensure your tool or spreadsheet includes all you need and nothing you don’t

• Sample data, helper tips and examples are crucial

Optimization Tip:

• Consider software tools for collection and progress assessment

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Elements of a BIA Data Collection / Gather Information Include in the BIA Questionnaire: •

Busines Function Name and description

•

Interdependencies

•

Business Impact/Criticality Assessment o

•

i.e. The Financial and Operational impacts, and Regulatory Legal and Compliance impacts

RTO – Target time to recover the business function after an incident (or the service or product)

Validate with business units and IT

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Elements of a BIA Data Collection / Gather Information Include in the BIA Questionnaire: •

MTD - Maximum Tolerable Downtime

•

RPO Assessment

•

Dependencies - Resources needed over time

•

Recovery Strategy / Manual work-around

Validate with business units and IT

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Elements of BIA

Presenting Results

Initiation

BIA

Analysis

Establishing the Process

Discovery

What should we consider in analyzing and presenting results?

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Elements of a BIA Analysis • Review and organize the collected information • What are the most critical business functions and systems?

• Timelines • Gaps that exist today • Note trends/strategy observations that you have uncovered

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Elements of a BIA – Presenting Results BIA Report • Executive Summary ✓ Objectives and Scope ✓ Methodology Used ✓ Participants ✓ Summary Results ▪ ▪

Most Critical Items Concerns

• Recommendations • Supporting Documentation

Present the BIA Results • Present your findings in a succinct way to company leadership

• Work on clear statements and visuals • Focus on high level findings

Optimization Tip:

• Reinforce how findings will feed into recovery strategies

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In Summary • Don’t skip the BIA

• Secure leadership and employee support with simple, clear education • Focus on data collection (comprehensive, but streamlined and explained) • Leverage software without undue focus on the tool • Don’t wait for the BCP to present BIA results

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Thank You!

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