Business Impact AnalysisVulnerabilities, Loss Potential and MitigationDonald L. Schmidt, ARM, CBCP, MCP, CBCLA, CEM®Preparedness, LLChttps://preparednessllc.com

Learning Objectives

Identify how a BIA can expose vulnerabilities and identify opportunities to mitigate risk

1Identify how a BIA can help you calculate business interruption loss potential

2Identify how to use the BIA to order the recovery of business processes

3

What’s a Business Impact Analysis?Management-level analysis that identifies, quantifies, and prioritizes the IMPACTS from interruptions or disruptions of an entity’s resources.

Prioritizes RECOVERY(“Recovery Time Objectives”)

Identifies RESOURCES: personnel, facilities, equipment, infrastructure, technology, information, and supply chain

Identifies VULNERABILITIES that are opportunities for risk mitigation

• Review financials; ask senior managers to define priorities

• Query knowledgeable experts• Whiteboard processes

• Supply chain → manufacturing/service → delivery

• Identify resource requirements

• Identify internal and external dependencies

• Ask “what if?” and “when?” to probe for vulnerabilities; identify recovery time objectives; and develop continuity strategies

• Walk the process from receiving to shipping

Conducting the BIA

Vulnerability Assessment & Risk Mitigation

• Sole or single source suppliers

• Single points of failure• Assets highly susceptible to

damage• Inadequately protected

assets

Every vulnerability is an opportunity for risk mitigation!

Calculating BI Loss Potential

Scenario: facility loss, regional disaster, “MFL”, supply chain …

Scope: company, product/service line(s), campus, facility …

BIA: Understand revenue and profit producing processes and their resource requirements; develop continuity strategies; calculate BI based on DOWNTIME BEFORE STRATEGIES IMPLEMENTED

Prioritizing Recovery

Revenue Strategic Initiatives

Market Share

Customers Relationships Deadlines Regulations

BIA Resource

Donald L. SchmidtPreparedness, LLC781.784.0672DLS@PreparednessLLC.comhttps://preparednessllc.com