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Business Impact Analysis Vulnerabilities, Loss Potential and Mitigation Donald L. Schmidt, ARM, CBCP, MCP, CBCLA, CEM® Preparedness, LLC https://preparednessllc.com
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
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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
