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Prevent Data Disaster: Essential Tips for Choosing the Right Recovery Software

In today’s digital age, data loss can be a nightmare scenario for individuals and businesses alike. Whether it’s due to accidental deletion, hardware failure, or a malicious cyber attack, losing critical data can have severe consequences. That’s where recovery software comes in. With the right recovery software, you can retrieve lost files and restore your data quickly and efficiently. But with so many options available in the market, how do you choose the right recovery software for your needs? In this article, we will discuss some essential tips to help you make an informed decision.

Assess Your Needs

Before diving into the vast array of recovery software options available, it is crucial to assess your specific needs. Consider the types of files you need to recover regularly and any unique requirements you may have. For example, if you work with multimedia files like photos or videos, look for recovery software that specializes in retrieving these types of files.

Additionally, evaluate your budget and determine how much you are willing to invest in recovery software. Some solutions offer basic functionality at a lower cost while others provide advanced features but come with a higher price tag. Understanding your needs and budget will help narrow down the selection process.

Research Different Options

Once you have identified your requirements and budget constraints, it’s time to research different recovery software options available in the market. Look for reputable companies that have been around for a while and have positive customer reviews. Pay attention to factors such as ease of use, reliability, customer support availability, and compatibility with your operating system.

Consider reading expert reviews or seeking recommendations from trusted sources who have experience with data recovery software. This research phase will give you valuable insights into each product’s strengths and weaknesses.

Compare Features

As you explore different recovery software options, compare their features side by side to determine which ones align with your needs. Look for essential features such as file preview, deep scan capabilities, and the ability to recover data from various storage devices like hard drives, USB drives, and memory cards.

Consider whether the software offers additional functionalities like creating disk images or securely erasing data. Some recovery software also provides cloud backup options or integrates with popular cloud storage services for added convenience.

Trial and Support

Before making a final decision, it’s crucial to try out the recovery software yourself. Many reputable companies offer free trial versions of their products, allowing you to test their functionality and user experience. Take advantage of these trial periods to ensure that the software meets your expectations and effectively recovers your lost files.

Lastly, consider the level of customer support provided by the recovery software company. Look for options that offer responsive customer support through email, live chat, or phone. Prompt assistance can make a significant difference when you are dealing with critical data loss situations.

In conclusion, choosing the right recovery software is essential in preventing data disasters and ensuring swift retrieval of lost files. By assessing your needs, researching different options, comparing features, and testing trial versions while considering customer support availability; you can make an informed decision that aligns with your requirements and budget. Don’t let data loss be a nightmare scenario – invest in reliable recovery software today.

This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.


disaster recovery plan business impact analysis

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Business Impact Analysis and Its Role in Disaster Recovery Planning

It is critically important for the survival of your business to identify processes, systems, and operations that are of eminent priority; that is the central focus of the business impact analysis (BIA). Its purpose is to determine how the interruption of your business operations may affect your organization. Potential effects include the loss of data, equipment, and revenue, loss of staff, reputational damage, and other types of business losses.

Business impact analysis is an important stage in developing a disaster recovery (DR) plan, the mission of which is to ensure operation of a company’s infrastructure and applications in case of a major outage. A comprehensive disaster recovery BIA report is one the most crucial elements required to devise an emergency response strategy.

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What Is BIA in Disaster Recovery?

One of the key elements of a business impact analysis is its priority setting. It is important to define the processes and operations that must be recovered as quickly as possible if a disaster strikes. To do this, you should identify the recovery time objectives (RTO) and recovery point objectives (RPO) .

  • RTO refers to the maximum amount of downtime your company can tolerate after a disaster. The idea is to find out the amount of revenue lost per unit of time, depending on the equipment and applications affected.
  • In turn, RPO refers to the acceptable amount of data that may be lost as a result of a disaster. Most likely, there will be a gap between the moment of failure and the last time you backed up your data. If a disaster strikes, data generated since the last backup is likely to be lost.

Knowing your goals regarding a recovery time frame can help you make the right decisions and choose appropriate procedures in the event of an emergency. In fact, RTO and RPO can fairly be called the foundation of a reliable business impact analysis, and therefore overall DR strategy.

To gain better understanding of the idea of BIA for disaster recovery, think about your business processes in terms of time sensitivity. If you are running an online store, special attention should be paid to operations involved in the processing of your customer’s orders and payments. Naturally, your marketing campaign matters, too, as it plays an important role in your store’s promotion in the long run. However, this shouldn’t become a priority if disaster strikes, as this isn’t a time-sensitive issue. If you try to evaluate your business processes from the viewpoint of time sensitivity, it can help you focus on your set of core goals and objectives. With that in mind, it doesn’t mean that other components of your normal workflow are not critical; it just means that they are not so time-sensitive.

Creating a Disaster Recovery BIA

Where to Begin

To prepare a comprehensive BIA for disaster recovery purposes, you should gain a full understanding of your organization’s material storage structure. To do this, you need to collect data. Prepare a detailed questionnaire and schedule interviews with key members of your team. Make sure to take all company levels and departments into consideration as you proceed. Broadly speaking, a company consists of interactive parts, all of which are supposed to work together seamlessly. The efficiency of your business is the sum of its parts. To conduct a BIA, you must know how these parts work, both individually and as a whole.

Your task is to identify processes that are essential to your company’s key services and products. After that, you should evaluate the impacts of a disruption of these processes and potential consequences over time. Equally important is to determine the minimum quantity of resources needed to restore your most vital business operations. Other factors to consider are as follows:

  • Categorize DR activities and determine priorities;
  • Identify dependencies between your business operations;
  • Conduct testing to determine the amount of time required to restore your most time-sensitive operations;
  • Determine resources required to resume operations of primary importance.

Considering the amount of data that should be collected, preparing a disaster recovery BIA is quite a time-consuming process, even when compared with other business continuity activities. You are supposed to maintain perfect knowledge of your business units and the functions they perform, how they interact, what technologies they rely on, and who is responsible for their functioning.

Disaster Recovery BIA Questionnaire

As mentioned above, one of the first steps in creating a disaster recovery BIA is to prepare a questionnaire. You will need to gather feedback from each department’s manager and key members. Quite often, BIA questionnaires are more or less the same, no matter what kind of business you’re running. Some of the key and most common issues to discuss are outlined below. Depending on your company’s specifics, you can add or delete them in accordance with their relevance.

Key topics for discussion

These are the factors worth considering if you want to create a comprehensive disaster recovery BIA:

Key business processes . Again, this aspect deserves special attention. List and prioritize processes required to maintain critical functions. A wise practice is to describe each process using a single phrase. This can help you grasp its basic role at a glance. Moreover, be sure to pay special attention to processes that involve cooperation with third parties, if any exist.

Dependencies . You need to find out which services or employees are required to restore a given process. This might relate to resources not only within your organization, but also beyond it. As an example, this is especially important for organizations that rely upon supply chains.

Criticality . Once you define your company’s processes and interdependencies between them, focus on how critical each of them is. This can help you set the right priorities in DR activities.

Recovery Time Objectives (RTO) . As explained above, it is important for you to identify RTO for each business process. You need to determine the maximum amount of downtime for each process before it causes serious consequences.

Staff . Identify the employee designated to oversee emergencies and other team members who are responsible for each particular business process, and provide their job titles and contact details. Also, check to see if there are any tasks that can be performed by only one employee in your company.

Alternatives . Find out if there is an alternative way to perform a given function or process. As an example, some tasks can be performed manually. If this is possible, try to estimate how much time this might take.

Equipment . Conduct an inventory of your computer equipment. You should be aware of the minimum hardware requirements needed to restore and maintain your most critical and time-sensitive operations.

Vital records . Make a list of records and documents, both electronic and paper, that are vital to your organization. If necessary, provide information on where they can be found.

Supplies . Create a list of your company’s suppliers and vendors. Provide their contact information so that they can be contacted in the event of an emergency. If possible, prepare a list of alternative supplying companies as well.

Budget . If possible, relate the workflow to the associated costs or revenue. For instance, you might need an offsite location to store your data or hard copy documents, and so on.

Final Thoughts

It would be hard to overestimate the importance of BIA for disaster recovery strategy. The key purpose of business impact analysis is to identify processes, systems, and functions that are of highest priority for the survival of your business. With a thoroughly prepared BIA in place, you can manage your resources more wisely and effectively.

In turn, NAKIVO Backup & Replication offers a wide range of tools to help you protect data in your physical, virtual, or cloud environments. Here are some of our product’s basic features:

  • Site Recovery – protect thousands of VMs across multiple locations by automating DR activities for a variety of incident scenarios.
  • Instant File Recovery – recover files, folders, and application objects to their original location in just one click, right from your compressed and deduplicated backups.
  • Backup to Cloud – send backups of your VMs to AWS or Azure Cloud to be certain they are safe, should your primary environment ever become unavailable.
  • Policy-Based Data Protection – create policy-based rules to automate routine data protection jobs.
  • Instant Verification – make sure your backups and replicas are available and fully functional.

The mission of NAKIVO Backup & Replication is to help you achieve 24/7 availability of your infrastructure and prevent loss of revenue. With our advanced functionality, you can rest assured that your most time-sensitive processes and operations are under complete protection.

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disaster recovery plan business impact analysis

Business Impact Analysis

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A business impact analysis (BIA) predicts the consequences of a disruption to your business, and gathers information needed to develop recovery strategies. Potential loss scenarios should be identified during a risk assessment . 

Identifying and evaluating the impact of disasters on business provides the basis for investment in prevention and mitigation strategies .

Business Disruption Scenarios to Consider

  • Physical damage to a building
  • Damage to or breakdown of machinery, systems or equipment
  • Restricted access to a site or building
  • Interruption of the supply chain including failure of a supplier or disruption of transportation of goods from the supplier
  • Utility outage (e.g., electrical power or water outage)
  • Damage to, loss or corruption of information technology including voice and data communications, servers, computers, operating systems, applications, and data

Potential Impacts

The BIA should identify the operational and financial impacts resulting from the disruption of business. Possible effects to consider include:

  • Lost sales and income
  • Delayed sales or income
  • Increased expenses (e.g., overtime labor, outsourcing, expediting costs, etc.)
  • Regulatory fines
  • Contractual penalties or loss of contractual bonuses
  • Customer dissatisfaction or defection
  • Delay of new business plans

Timing and Duration of Disruptive Event

The point in time when a business function or process is disrupted can have a significant bearing on the loss sustained. A store damaged in the weeks prior to the holiday shopping season may lose a substantial amount of its yearly sales. A power outage lasting a few minutes would be a minor inconvenience for most businesses, but one lasting for hours could result in significant business losses. A short duration disruption of production may be overcome by shipping finished goods from a warehouse but disruption of a product in high demand could have a significant impact.

Conducting the BIA

Use a BIA questionnaire  to survey managers and others within the business. Survey those with detailed knowledge of how the business manufactures its products or provides its services. Ask them to identify the potential impacts if the business function or process that they are responsible for is interrupted. The BIA also should identify the critical business processes and resources needed for the business to continue to function at different levels.

The BIA report should document the potential impacts resulting from the disruption of business functions and processes. Scenarios resulting in significant business interruption should be assessed in terms of financial impact, if possible. These costs should be compared with the costs for possible recovery strategies.

The BIA report should prioritize the order of events for restoring business functions. Business processes with the greatest operational and financial impacts should be restored first.

Last Updated: 09/07/2023

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How to perform a disaster recovery business impact analysis

Includes a sample business impact analysis form

Excerpted from Building an Enterprise-Wide Business Continuity Program

by Kelley Okolita (CRC Press, 2009).

What is a Business Impact Analysis?

The next step in the planning process is to perform a business impact analysis (BIA). The BIA becomes the foundation of the plan you will build for your recovery. This is the process that will determine what needs to be recovered and how quickly. It is one of the most difficult tasks to perform and one of the most critical to get right. The more time you have to bring a business function back in service following a disaster, the more your recovery options increase. The BIA is invaluable for identifying what is at stake following a disaster and for justifying spending on protection and recovery capability. Nobody but you will mind your own business.

Why Business Impact Is About Time Sensitivity, Not Criticality

I dislike the use of the terms “critical” or “essential” in defining the processes or people involved in this phase of the planning. I prefer to use the term “time-sensitive.” Generally speaking, organizations do not hire staff to perform non-essential tasks. Every function has a purpose, but some are more time-sensitive than others when there is limited time or resources available to perform them. A bank that has suffered a building fire could easily stop its marketing campaign but would not be able to stop processing deposits and checks written by their customers. The bank’s marketing campaign is essential to its growth in the long term, but in the middle of a disaster it will take a backseat, not because it is not critical but because it is not time-sensitive.

The organization needs to look at every function in this same light. How long can the company not perform this function without causing significant financial losses, significant customer unhappiness, or significant penalties or fines from regulators or from lawsuits?

How To Do This and Get It Right

It is all about impact. It is all about what keeps the business running and what can wait till later. When I was doing mid-range and client-server DR for a company, I had to speak to the business unit that managed the general ledger for the company. The general ledger is concerned with accounts payable and receivable. It is just like your checkbook. It is where a business keeps track of the monies coming in for payment of goods or services and those going out to pay for expenses such as payroll. In this company, the general ledger ran on an AS400, and my job was to figure out how long I had before I needed to bring back the system. When I met with the business unit, the first response was that it had to be back by day one after a disaster.

My response was that I was willing to build whatever recovery strategy the business needed and was willing to pay for, but before I priced this strategy, I wanted the team to think about something. This is a financial-services firm. If we did not run the general-ledger system for 30 days, it would be ugly. There is no question that we would have to cut manual checks to keep critical services going and have to maintain a manual general ledger until the system was brought back. I would not want to be the accountant who had to reconcile all the manual-ledger entries into the application once it was restored, but the firm would survive as a business if it did not run the general ledger for a month. How long do you think we would survive as a business if we did not answer our phones? Price our mutual funds? Process our customers’ transactions?

It is not about being important. When business is normal, the general ledger is very important. It is about what keeps us in business. It is about surviving. Disasters are not about business as usual. Management metric reporting is very important when business is normal. My CEO expects his management reports on his desk at 7:00 a.m. every business day. But if the home office burnt to the ground, I know he would be willing to forgo seeing them for a few days!

All business functions and the technology that supports them need to be classified based on their recovery priority. Recovery time frames for business operations are driven by the consequences of not performing the functions. The consequences may be the result of business lost during the down period: contractual commitments not met and resulting in fines or lawsuits, lost goodwill with customers, etc. Impacts generally fall into one or more of these categories: financial, regulatory, or customer retention. Remember, these were the same categories we talked about in Chapter 2.

What steps can you give your planning team to conduct a business impact analysis? It starts with simply identifying the processes or functions performed in their area. Working with the management team, list everything that is done by that group. Once the business processes are understood, each one must be analyzed against three areas: financial risk of not performing that function, regulatory risk of not performing that function, and customer or reputational risk of not performing that function.

Financial risks may include loss of revenue, loss of interest on bank balances, the cost of borrowing to meet cash flow, loss of revenue from sales, interest value on deferred billings, penalties from not meeting contractual commitments or service levels, opportunity lost during the downtime, and losses from processing transactions at market risk as of the date received.

Regulatory risk may include penalties for not filing financial reports or tax returns on time, fines or penalties for noncompliance with regulatory requirements in place for your business, or the need to pull products off shelves because of lost product-testing information.

Customer or reputational risk includes loss of customer confidence and market share, liability claims, customer dissatisfaction with service, media coverage of customer complaints, loss of goodwill, and loss of competitive advantage.

It is all about impact. What happens to the company if we do not do this?

Once your planning team has a list of functions and what happens if they are not performed, the next question to be answered is, how soon do we start to see the impact? Is it as soon as we stop doing something? A customer call center that has been evacuated due to a fi re stops performing its function immediately. Unless there is another call center someplace else that is fully equipped and staffed to take calls, the impact to your customers is immediate. How significant this impact is depends entirely on your business—how many calls you get and what the calls are about.

Let’s say your call center receives an average of 1200 calls per hour and on average, 72 percent of those calls result in a sale with an average value of $57. Do the math: 1200 x 0.72 x $57 = $49,248, the potential loss per hour that the call center is not operational.

If your customers or potential customers find your product or service and place their orders on your website and it goes down, you have an immediate impact. Again, how significant the impact is depends on your business—how many orders you take, how much each order is for, and whether the customers will wait and order from you later or take their business elsewhere.

After your planning team has a list of functions, an idea of what happens when they stop, and how quickly you start to see the impact, the next question to be answered is, how much impact? You can use quantitative measures such as actual dollars per minute, hour, or day of downtime or qualitative measures, which predict certain outcomes based on the knowledge or experience of the individual.

Once all that information is pulled together, you have a view of everything the company does, what impact it would have if the function could not be performed, how quickly that impact would be felt, and how significant the impact will be. This information is the start of what we need to develop the appropriate recovery strategies for each site we do business in.

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Business impact analysis and risk assessment

One of the first steps to perform when planning the implementation of a disaster recovery solution is a business impact analysis for all relevant applications. A business impact analysis should quantify the business impact of a disruption to each application. It should identify the impact your internal and external customers will face from not being able to use your applications and the effect that will have on your business with regards to cost, reputation, and compliance. The analysis should help you determine how quickly the application needs to be made available (RTO) and how much data loss can be tolerated (RPO). However, recovery objectives should not be defined without also considering the likelihood of disruption and the cost of recovery when calculating the business value of providing disaster recovery for an application.

The business impact of a disaster may not be constant. For example, the impact might be dependent on the timing of the disaster — disruption to your payroll system is likely to have a very high impact to the business just before employees are supposed to be paid, but it may have a low impact just after employees have been paid.

With all of this information, you can document the threat, risk, and impact of different disaster scenarios and the associated recovery options. This information should be used to choose the best disaster recovery strategy and tools for each application and to match the risk and impact (financial, among other types) of a disaster for each application.

The following table is a sample risk analysis for disaster recovery planning for determining maximum TCO.

Table 1 - Sample risk analysis for disaster recovery planning

Risk analysis for application <APPLICATION NAME>

After you have determined your maximum TCO, identify whether there is a disaster recovery solution that has a lower TCO than the cost estimated in the risk analysis (taking the probability of a disaster into account). If such a solution exists, then it makes sense financially to use that solution for that application.

In addition to the financial calculations, the RTO and RPO for each application need to be considered during this process. The more critical the application is, the more aggressive its RTO and RPO requirements, resulting in a higher TCO of an overall disaster recovery solution. Therefore, solutions that don’t offer the needed RTO and RPO should not be considered, even if they make sense based on the raw financial calculation.

How to match a disaster recovery solution to an application

There are a variety of disaster recovery solutions on the market. Currently available disaster recovery solutions have the following main differences:

Source application support limitations – Different disaster recovery products and services support a different subset of operating systems, central processing unit (CPU) architectures, applications, and hypervisors. For applications that are not supported by a disaster recovery solution, the solution will either not be able to correctly (if at all) copy the data to the disaster recovery site or run a working copy of that application in the disaster recovery site when needed (the latter sometimes can only be discovered during a disaster recovery drill).

Recovery infrastructure support limitations – Different disaster recovery solutions have different requirements for the disaster recovery site infrastructure. For example, not all recovery infrastructures support all of the operating systems of the source or can run with the required performance.

RPO – Choose a solution that provides the RPO required for the application.

RTO – Choose a solution that offers your required RTO.

TCO – Usually the more features and capabilities a disaster recovery solution has, the higher its TCO will be. For example, more aggressive RTOs and RPOs would increase the TCO.

Compliance – Applications that are covered by compliance certifications normally require their disaster recovery solutions to be covered by the requirements of the certifications.

Ease of operation – Choose a solution that does not require significant effort or uncommon skills to operate and manage during normal operation (outside of drills and disasters).

Ease of disaster recovery drills – Choose a solution that reduces the cost and simplifies the process for disaster recovery drills. This will encourage you to conduct the drills more frequently and improve your readiness for disasters.

Level of automation – Disaster recovery solutions that offer a higher level of automation (for example, they have application programming interfaces (APIs) for integration with other solutions) can be used to extend their capabilities and meet more of your disaster recovery needs.

This list of technical criteria should be used when evaluating which disaster recovery solution best meets your needs. Keep in mind that different applications (or groups of applications) are likely to have different requirements. It’s also important to pay attention to the small print and to confirm that the product will work as expected in real life scenarios.

Lastly, as a general best practice, narrow down your disaster recovery solutions to the ones you actually need. Operationally, each new solution will have separate overhead, an added learning curve, and additional implementation and maintenance efforts (such as monitoring the solution, upgrading versions, and applying security patches). Therefore, AWS recommends selecting a small number of disaster recovery solutions to cover all the required applications.

After you select the disaster recovery solution for each application, you need to plan the implementation project. Implementing disaster recovery for a large number of applications may be a lengthy and complex project.

To simplify and accelerate the project, include the following in your planning process:

Mapping – Map the applications, the resources within the applications, and what needs to be recovered for the application to run. AWS recommends preparing a complete list of such resources, grouped by applications. These resources include servers, appliances (such as NAS appliances and firewalls), and networks. As a part of this mapping, dependencies within and between applications need to be established and documented.

For each application, go through the risk analysis, define the disaster recovery tier, and determine the RTO and RPO.

Timeline – For both the planning and the implementation stages, a realistic timeline needs to be defined based on the number of applications and their complexity and also the skillset and experience of the people involved in the project.

People – The number of people that will be allocated for each stage of the project (including planning and implementation), who these people are, and the skillsets, roles, and responsibilities of each person.

Budget – How much the entire project is estimated to cost. The budget should take into account the cost of the licenses of the AWS services used as well as other costs, such as data transfer from the source site to AWS.

Solution – Choose solutions for each disaster recovery tier. Because this paper focuses on using AWS for disaster recovery, the prescribed suggestions are as follows:

For servers, use Elastic Disaster Recovery. Edge cases for which Elastic Disaster Recovery cannot be used include unsupported operating systems , non-ACID applications (such as MyISAM-backed MySQL databases), applications using shared storage that multiple nodes write to in parallel (such as Oracle RAC), systems that have distributed databases with multiple nodes that need to be in sync with each other (such as a Hadoop Cluster), and servers that the AWS Replication Agent can’t be installed on (for example, third-party appliances).

For NAS appliances, such as NetApp, use DataSync whenever possible.

For components of source applications that are not supported by either Elastic Disaster Recovery or DataSync, an application-level solution needs to be used. For example, Oracle has application-level solutions for replicating Oracle RAC databases, NAS appliances can be replicated by periodically copying all the changed files to AWS, and Hadoop clusters may require duplicating each node with another one running in AWS. Application-level disaster recovery solutions have multiple disadvantages, including scope (only relevant for specific applications or application components), cost, and ability to replicate over long distances. Therefore, we recommend trying other disaster recovery solution options prior to opting for an application-level solution.

Success criteria – For a disaster recovery implementation project, success is normally signified by a disaster recovery drill that achieves a failover according to the requirements of the disaster recovery plan.

Team resources – Assign team members who are skilled in the resources you mapped for replication. For example, if you have a mix of Linux and Windows operating systems, then you need people who understand both operating systems.

Timelines – Assign timelines to the implementation phase and to at least a single successful drill per application that will conclude the implementation. The disaster recovery implementation is done when all of the applications have had at least one successful drill.


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What Is a Business Impact Analysis (BIA)? Conduct Your Own in 4 Steps

You probably have an idea of the kinds of threats your business might face, but do you know what kind of damage they’ll cause? That’s where BIA comes in.


What Is a Business Impact Analysis (BIA)?

How bia fits into business continuity planning.

  • 4 Steps To Conducting a Business Impact Analysis

Some things in life are unavoidable. From natural disasters to acts of violence to the reliability of power grids, there are a host of external factors out of our control that can significantly impact vital business processes and operations. And while we can’t necessarily prevent these events from occurring, we can better understand, and thus better limit, their impact.

How ? With a business impact analysis .

A business impact analysis is one the most important elements of any emergency response strategy. It helps organizations define the critical processes and operations that must be recovered as quickly as possible if a disaster strikes. In a true emergency, it can be hard to know where to start. The downtime resulting from a widespread utility outage or IT failure, for example, can have far-reaching effects across many mission-critical business processes. With a business impact analysis, you can gain clarity on how to prioritize your recovery efforts to minimize the losses from a major business disruption.

In this blog post, we’ll explore what a business impact analysis is, why every organization needs one, and how you can conduct this assessment to inform your disaster recovery, business continuity, and emergency response plans.

A business impact analysis or business impact assessment (BIA) is a structured process that organizations use to determine how critical various business activities and resources are to continuing normal business operations.

The various organs of a business have different goals, dependencies, and resources that determine how they function. A business impact analysis… well, analyzes these organs and determines what happens to the rest of the business when one of them is disrupted or fails.

With these insights, businesses can develop business continuity and disaster recovery strategies to limit potential losses.

BIA vs. risk assessment

While a risk or threat assessment determines the types of threats a business is most likely to face, a BIA looks at the business consequences. For a BIA, the cause of the business disruption is less important. It could be an accident, natural disaster, cyberattack, or something else. A BIA only considers the business impact of the disruption, prioritizes resources, and determines the best approach to disaster recovery.

Business Impact Analysis Template

Unlike a business threat assessment , BIAs are concerned with the results of disruptions rather than the causes of those problems—though both processes are complementary to your business continuity strategy and work well in tandem.

A BIA identifies the financial and operational impacts resulting from the disruption of business functions and processes. Operational impact analysis may include:

  • Lost or delayed revenue
  • Increased expenses
  • Regulatory fines and legal fees
  • Contractual penalties
  • Brand and reputational damage
  • Customer churn or dissatisfaction

Of course, the business impact depends greatly on the duration and timing of the disruption. A 30-second power outage will have less impact than a 24-hour IT outage. A fire in a remote and partially empty warehouse will be less of an interruption than a fire in an active manufacturing facility. For a retailer experiencing an ecommerce site outage, the impact is obviously greater if it occurs during a big sale or seasonal event like Black Friday compared to a slower period.

By analyzing different possible disruptions and their effect on critical business processes, a business impact analysis prepares organizations to more readily handle any emergency. A BIA is also a critical step in developing an effective business continuity plan (BCP).

A BIA lays the foundation for your business continuity plan. It ensures your organization has a clear plan of action and the resources required to recover from critical events efficiently and with minimal disruption.

With the ability to recover quicker, organizations can reduce costs, optimize employee productivity, and maintain customer trust. A business impact analysis gives business leaders more confidence in their decisions when responding to critical events. It also enables organizations to determine—well in advance of a crisis—what mitigation strategies and tools they can utilize so they’re not left scrambling when disaster strikes.

From severe weather and natural disasters to cyberattacks and workplace accidents, all businesses will experience a disruptive event sooner or later. To mitigate the bottom-line impact of these threats, every business should perform a business impact analysis as part of their business continuity and disaster recovery planning efforts.

4 Key Business Impact Analysis Steps

There is no one-size-fits-all template for how to conduct a business impact analysis; every company has unique methods and organizational structures. But there are some common elements that should go into the creation of every BIA.

Here are four essential steps in any organization’s BIA process:

Step #1: Build your business impact analysis project team

Before conducting your business impact analysis, you’ll first need to assemble the project team. A BIA team should include the following roles:

  • Project Leader : Primary contact responsible for conducting a successful business impact analysis.
  • Executive Sponsor : Executive champion responsible for providing strategic input and guidance.
  • Business Process Owners : Representatives from different business units, such as IT and Finance, who will provide insights into relevant business processes and help implement BIA recommendations.

Here’s what your business impact analysis project team may look like, along with each team member’s responsibilities:  

Responsibilities: Provide overall project management responsibility, working with business owners to deliver the business impact analysis.

Responsibilities: Provide strategic input, support problem resolution, and give executive signoff on critical activities.

Responsibilities: Analyze the IT applications and software systems to determine if current IT disaster recovery (DR) arrangements enable recovery of these within specific recovery time objectives (RTOs).

Responsibilities: Consider regulatory requirements, contractual obligations, fines, and legal liabilities that may come up during business disruptions.

Responsibilities: Determine the key business risks, define the risk threshold, and help develop the impact parameters.

Responsibilities: Supply financial data and advice on direct and indirect financial impacts.

Responsibilities: Provide information on critical supply chain dependencies, production-related activities, and operational impacts.

Responsibilities:  Consider duty of care obligations, compliance, and employee health and safety.

Responsibilities: Supply information on facilities, utilities, alternative recovery work locations, etc.

Step #2: Gather and evaluate business process information

With your all-star team assembled, it’s time to roll up your sleeves. As you begin to gather information, send a BIA questionnaire to survey managers and others within the business. You’ll also want to personally interview those with detailed knowledge of how the business manufactures its products or provides its services. With these insights from business process owners and key stakeholders, you’ll be able to understand the potential consequences better if a particular business function or process is interrupted.

In your BIA interviews and surveys, you’ll want to capture information about various business processes such as:

  • Name of the process
  • Where it is performed
  • Inputs and outputs
  • Resources and tools used
  • Any process interdependencies
  • Impact of disruptions (financial, operational, regulatory, etc.)
  • How the timing and duration of a given disruption affects its impact

Once you have collected all of the information needed about each business process, the impact analysis can begin. Consider these four questions:

  • Which functions and processes are most important to business continuity?
  • What resources (people and technology) does each process need?
  • What is the recovery timeline for bringing each process back to normal operation?
  • What is the recovery point objective (RPO)? In other words, what is the timeframe for when services/data need to be restored?

Cascading failures

When Memorial Health System found itself the victim of a “hive”-style cyberattack that infected all of their servers and computers, they ran into the usual problems. Critical medical information systems, such as diagnostic machines, including MRIs, were unable to send out their results. Digital records became useless, and old paper backups had to come out of storage.

Other issues ensued, like how their vendors’ servers refused to communicate with Memorial’s contaminated ones, further hampering operations. Payroll was impacted; even the cafeteria cash registers lost internet connectivity, which resulted in many a free employee lunch.

Lori Price, the Emergency Management Coordinator at Memorial, told this story on our podcast to share the importance of understanding the interconnected functions of any business.

Since they had already analyzed and prepared for the ways in which one cybersecurity problem can summon many in its wake, they were able to adapt to this disruption and continue offering their lifesaving care to patients. But any business that hasn’t performed proper analysis would have been far worse off.

Step #3: Prepare a BIA report to aid business continuity and disaster recovery

Once the information gathering and analysis phase is complete, it’s time to prepare a business impact analysis report. This report will allow you to communicate your findings and recommendations to senior management, as well as guide the development of your business continuity plan.

The BIA report should document the potential impacts resulting from the disruption of business functions and processes. It will also provide the order of response priorities for restoring normal business operations. Business processes with the greatest financial and operational impacts should be restored first.

If there is a critical production process that needs to be up and running within 24 hours, but your current resources can only get it operational within 48 hours, for example, be sure to address it and outline resource requirements in the BIA report.

Step #4: Implement recommendations to address continuity vulnerabilities

Once your team has conducted the BIA and outlined disaster recovery strategies, the final step is to implement the recommendations from the business impact analysis report. Buy-in and support from your executive sponsor and business owners are critical to ensuring recommendations are implemented across each of the critical business functions identified.

Also, be sure to regularly revisit your business impact analysis to update it as new processes are implemented, the organization’s structure is reshuffled, or available resources change. Your business isn’t static—and neither is a business impact analysis. With your organization constantly growing and evolving, the BIA should be regularly reviewed and modified as needed to ensure it’s still valid.

Adopting Mitigation Tools and Strategies

Once the BIA is complete, business continuity and disaster recovery leaders can use it to help implement mitigation strategies and tools to reduce the impact of various threats. And one such tool is a modern emergency communication solution .

During disruptive events, communication is a lifeline. Being able to relay information and instructions to employees is critical to a fast, efficient emergency response. Emergency communication systems with integrated threat intelligence allow businesses to more rapidly identify threats, visualize the people and locations that are impacted, and facilitate an organized response using multichannel communication—all from a single platform.

Threat intelligence capabilities allow you to recognize critical situations before they happen, giving you the benefit of alerting and organizing your audience in advance. It provides the organization with “always-on” monitoring to identify potentially disruptive incidents as quickly as possible. This helps mitigate losses by improving readiness and accelerating response times.

BIA Means Constant Vigilance

When it comes to emergency preparedness and your disaster recovery plan, speed is everything. How quickly can you identify potential threats? How quickly can you communicate with employees? How fast is your response? How long does it take you to restore business operations? Your organization’s ability to rapidly respond to and recover from business disruptions is directly related to the effectiveness of your business continuity management . And every effective business continuity plan is rooted in business impact analysis.

While there are many ways organizations can improve emergency preparedness—from developing comprehensive preparedness plans to regularly conducting tabletop exercises —the world’s most resilient organizations are constantly looking for ways to accelerate how they detect, validate, and respond to any threat to their people or business. With a business impact analysis supported by modern emergency communication and threat intelligence technology, organizations can maintain organizational resilience, protect the bottom line, and keep business operations running as smoothly as possible during unexpected disruptions.

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Business Impact and Risk Analysis as a part of disaster recovery planning

Business Impact and Risk Analysis as a part Disaster Recovery Planning

Two crucial cogs in the Disaster Recovery Plan are Business Impact Analysis and Risk Analysis. However, Business Impact Analysis and Risk Analysis have to be at the correct stage of the overall Disaster Recovery Plan. Only then will it have the needed impact as a part of the Disaster Recovery Plan. The overall goals of a Disaster Recovery Plan are:

  • To device strategies and procedures to help an organization resume normal operations after a disaster
  • To achieve normal or near-normal production within the shortest possible time

Environmental Disasters Product Recall

With these goals in mind, it can be seen that the Business Impact Analysis has to be done before Risk Analysis. The purpose of the Business Impact Analysis is to determine the most critical business functions in the organization, along with the assets that are needed for these functions. Once the critical functions have been determined, the Risk Analysis will list out the vulnerabilities, both external and internal, that the assets providing core business can be subjected to.

Business Impact Analysis as a component of Disaster Recovery Plan

Some of the critical business functions that could impact production during a disaster that have to be factored into a Business Impact Analysis are:

  • Halt in business functions that generate revenue
  • Death and injuries to critical staff
  • Loss of production center
  • Death or incapacitation of top decision making management staff
  • Damage to assets linked to production

By posing a series of questions to key members of an operating sub-unit in an organization, it is possible to determine the business impact of a halt in production in that particular sub-unit. Therefore, at the end of this exercise, the big picture will emerge as to the order of criticality of each function. The Business Impact Analysis can now be formulated on the data obtained.

Some of the questions which have to be asked to obtain adequate information for Business Impact Analysis are

  • What are the critical and non-critical business functions of a particular unit and how does it operate?
  • What are the critical functions of each unit?
  • What is the revenue loss per hour for the unit in case of production downtime?
  • What are the external and internal inputs required for production in the unit?
  • What data is required for production?
  • What is the minimum recovery time to restore data to a pre-disaster state?
  • What is the minimum staff requirement to keep the unit operational?
  • What are the minimum assets required for production?

These are some of the answers to be elicited for Business Impact Analysis, but it is no means exhaustive

The Business Impact Analysis should have clarity on the following

  • Potential problems a business could face
  • Probable cost associated with a particular type of problem
  • Level of protection to be given to a unit depending on its criticality
  • The level of acceptable disruption
  • The minimum level of assets required to maintain production
  • The critical staff required to re-start and maintain production till normalcy is restored

Risk Analysis as a component of Disaster Recovery Plan

The Risk Analysis should primarily focus on the following risks associated with a disaster:

  • Loss of critical data
  • Loss of IT/Manufacturing functions
  • Loss of skilled hands due to death/incapacitation or any other factor

Some of the common disasters that could strike a business are

  • Fire at production center
  • Power outage at production center
  • Illness/incapacitation of staff
  • Adverse weather conditions such as tornado, hurricane etc
  • Flooding and/or water damage
  • Accidental loss of data due to an employee mistake

By questioning and working with unit managers, it is possible to determine events which could adversely affect production. Some of the risks may be endemic to that area, whereas other types of risks could be a once in a life time event. Using available statistics, it is possible to have a reasonable estimate of the likelihood of an event occurring in that area and assign a risk factor to it, using standard guidelines. Business Impact Analysis and Risk Analysis are key components of a Disaster Recovery Plan . When Business Impact Analysis and Risk Analysis are well formulated, it will go a long way in making a robust Disaster Recovery Plan.

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disaster recovery plan business impact analysis

4 Steps to Conducting a Business Impact Analysis for Disaster Recovery

4 Steps to Conducting a Business Impact Analysis for Disaster Recovery

Business continuity planning starts with establishing a set of risk management processes and procedures to prevent the disruption or downtime of mission-critical services. However, organizations can sometimes overlook the essential objective of their continuityplan.  It must always include developing a plan to re-establish full function quickly and smoothing during an outage. The natural disasters, cyber-attacks, or human error that can cause downtime events are unpredictable, but a disaster recovery plan can provide confidence and control in the face of uncertainty.+

It takes businesses decades to build a reputation and minutes to ruin it — the costs of downtime are tremendous, ranging from around $10,000-$50,000 an hour for small businesses and up to over $1 million an hour for large corporations. Both rapid recovery and disruption prevention start with having a well-thought-out business impact analysis and a thorough understanding of two industry terms, RPO and RTO. It may not be practical for businesses to recover all business functions immediately following a disaster event. So these tools help organizations prioritize the most critical functions and establish recovery objectives to build an effective disaster recovery plan. 

How Does Business Impact Analysis Support Your Business Continuity Planning?

The purpose of a business impact analysis is to identify business processes and their criticality to an organization’s objectives and match them to the systems and components they depend on to function. A complete business impact analysis will give your organization a clear understanding of the systems, components, and applications your business relies on upon its day-to-day operations. 

RPO and RTO Objectives Are Key Elements Of Your Disaster Recovery Plan

Determining your company’s RPO (recovery point objective) and RTO (recovery time objective) is an essential step in developing your business impact analysis and planning for backup and disaster recovery. To put it simply, RPO is the determined maximum time that can pass during which data is lost. For example, if your RPO is five hours, you will need to back up or employ retrieval solutions that can be met in no more than five-hour increments. RTO is the maximum time after a disruption in which a business process must be restored. 

These objectives can vary based upon the critical nature of different applications. For example, an organization may find it acceptable to restore specific processes based upon the business impact analysis that may not be considered a top priority for restoration initially, yet they are customer-facing and would result in reputational damage that requires their accessibility in under an hour.  

Recovery objectives will largely depend on your industry and the SLAs (service-level agreements) you might have with your customers. For example, SaaS companies may have contracts that stipulate they must pay customers thousands of dollars per hour of downtime. A retail company may not have SLAs, but it could miss out on thousands of dollars in sales if it cannot process transactions for an hour. Another consideration is that some systems and applications are more critical than others. For example, losing the ability to process transactions for an hour or recover lost data is much more vital to a credit card company than losing access to its payroll system for an hour.

How to Conduct a Business Impact Analysis

To get started determining the RPO and RTO for each of your business processes, here is an example method to conduct a business impact analysis. Use this table as a guide and follow the steps below to complete your investigation.

  • Meet with business process stakeholders Meet with stakeholders from each department or business unit to review their processes and inventory all IT systems and applications they rely on to do their jobs. It’s essential to thoroughly understand these processes and trace them to the IT resources needed. Without a thorough understanding of a process, it can be easy to miss vital continuity components. Remember that interconnection points are essential for researching digitally dependent systems – proactively identify and record each point of contact for connected business processes.
  • Identify downtime impacts When meeting with business process stakeholders, guide the conversation around downtime and impact by discussing the quantity of data input, saving, and utilization within a single working hour. If there is little or no impact in an hour, ask about larger increments like 3 hours or 6 hours until you understand the criticality of the process. What would happen if your business could not complete a process or save data within one hour? Assign each process an impact rating of minor , moderate , or severe . Every organization will define these impact ratings differently, but risks to consider for every business process include revenue loss, productivity loss, legal implications, brand reputation, and customer churn due to the inability to access services. With these in mind, your organization can start to define minor, moderate, and severe and identify the maximum tolerable downtime, or MTD, for each process.
  • Meet with business leaders to help with disaster recovery prioritization Multiple business process stakeholders will likely say that their process is mission-critical and that downtime impacts would be severe. For this reason, it’s worth meeting with upper management to review your findings from stakeholder meetings to ensure that the assessment is in line with what leadership determines to be the business’s key strategic objectives.
  • Identify RPO and RTO for each business continuity resource . Once these meetings with stakeholders are complete and MTD and severity ratings are identified for each process, it’s time to get into the weeds. Meet with IT stakeholders to determine the exact servers, platforms, and/or applications necessary to complete each business process and compile them in a spreadsheet. Convert the severity ratings and MTDs you established with stakeholders into official RPOs and RTOs for each resource.

The larger your organization is, the more difficult it can be to determine what business processes and systems are the most critical assets. The National Institute of Standards and Technology (NIST) provides a helpful document for analyzing your business processes to prioritize systems and components based on the importance of their role in carrying out your organization’s mission and objectives. 

Begin Planning Your Disaster Recovery Solution

Determining the criticality of each business process can be tedious. Still, when your business impact analysis is done, you will have completed a giant step in the right direction for developing an effective and holistic disaster recovery plan. This analysis will help your organization determine not only where to implement disaster recovery solutions but how much budget and resources are required to meet your RPO and RTO objectives. 

Your disaster recovery plan will likely involve a combination of backup solutions and disaster recovery deployments. A strategically located deployment in a purpose-built colocation data center can provide the level of redundancy and protection you need to ensure the continuity of mission-critical operations. 

Element Critical provides data center colocation services in purpose-built facilities with redundant power and network connectivity across the U.S.  Download our IT Leader’s Disaster Recovery Guide to learn more about IT disaster recovery and start building your Disaster Recovery solution today.  

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The Complete Guide to Business Impact Analysis with Templates

Updated on: 24 November 2022

The business impact analysis is one of the most important components of the business continuity management planning process. During the analysis, you identify how potential disruptions would impact your key business functions and the overall performance of your organization.

In this post, we will cover everything you need to know about business impact analysis along with useful templates that you can use to get a head start on the planning process. 

What is a Business Impact Analysis

As the name implies, the BIA process identifies the exposure and impact of specific threats or disruptions to your business functions and to your organization.

Consequences of such a disruption can include financial loss, reputational loss, and loss of competitive position in addition to potential loss of staff, loss of data, and even loss of access to buildings. 

The business impact analysis consists of evaluating the critical business functions of the organization, analyzing the potential disruptive impact on them, and gathering information needed to develop recovery strategies via which the resources required to recover and resume them in the case of a disaster will be determined.

A business impact analysis usually consists of the following steps that are to be led by the BCP (Business Continuity Plan) manager;

  • Establishing business impact criteria using the BIA questionnaire  
  • Prioritizing the importance of each business unit against the established criteria 
  • Consolidating the findings and rankings 
  • Presenting the final results to the executive management to confirm critical classifications and priority listings 

Elements of a Business Impact Analysis

A successful BIA should produce the following deliverables.

  • Prioritized critical business functions 
  • Classification of criticality 
  • Tolerable limits 
  • Restoration priority 
  • Impact analysis (both quantitative and qualitative) of unavailable business functions and the problems and damages caused by their unavailability. 
  • Minimum resources that are needed to recover the prioritized critical business functions.

When to Conduct a BIA

The BIA can be used when you need to, 

  • Evaluate the impact of disruption on a business function or process within the organization. 
  • Determine and understand the extent to which key functional and operational dependencies exist within the organization.
  • Establish the priorities and the sequence in which the disrupted key business functions and IT systems should be restored.

The Importance and Benefits of a Business Impact Analysis 

A BIA is a self-evaluation process that can lead to the following advantages. 

  • Provides necessary information for both decision-making and for incorporation into the business continuity plan .  
  • Helps identify the key business processes that are critical to the survival of the organization, and directs effort and resources toward what matters. 
  • Assesses the effects of disruption to key business operations or processes within the organization. 
  • Helps the entire organization get involved in business continuity planning, while allowing each head of a business unit to evaluate operations and assign a value to downtime. 
  • Identifies the equipment and resources needed to run critical business functions and ensures their availability. 
  • Assesses the impact it would have on revenue, investor support, customer service, competitive advantage, and market share in case a critical business function cannot be performed. 
  • Helps identify the vital resources that are needed to maintain normal key operating conditions in a cost-effective manner. 

BIA vs Risk Assessment

Whereas the risk assessment seeks to identify the threats that will affect the business and minimize the likelihood of disasters happening, the business impact analysis seeks to establish the optimum balance between recovery timescale and cost, which helps to justify the expenses on risk countermeasures and on recovery capability. 

Although risk assessment and business impact analysis are treated as separate activities, for all practical purposes they are both parts of the overall risk management process of an organization. 

Risk Assessment Template

BIA vs. Disaster Recovery Planning

The BIA is one of the vital steps in disaster recovery planning. The BIA is used to evaluate and gather information about the precise effects of the disaster on the organization. The BIA, which identifies critical business functions and the impact of disruption on them, provides the necessary insight to define disaster recovery strategies in response to disasters.

Disaster recovery plan template

BIA vs. Business Continuity Planning

Business Impact Analysis and risk analysis are areas of business continuity management. While the business continuity plans are based on information, the risk analysis and BIA provide that information and lay the foundation for all related plans. 

Business Continuity Plan

How to Conduct a BIA

Here we have listed down the steps you need to follow to conduct an effective BIA. 

Plan your BIA process

A business impact analysis is a project in itself. And like any regular project, it needs planning. With a proper plan establishing the scope of the analysis, goals and objectives, project team, timeline, budget, and the stakeholders involved, you will be able to see it through to the end without unexpected hurdles.  

Project-Plan-Template for a business impact analysis

Discover more relevant project management documents with our comprehensive list of project documentation templates .

Gather information

In order to conduct an effective BIA, you should have a first-hand idea of and information on, 

  • How the key business processes work
  • Inputs and outputs of the process
  • Resources and tools required
  • Duration of the process
  • End-users of the process
  • Potential disruptions to the process
  • Financial, operational, and legal impacts of such threats

You can gather this information by,

  • Talking to or interviewing process owners and stakeholders 
  • Creating and sharing a business impact analysis questionnaire to gather information on business functions, support systems, and IT systems

Verify and Analyze Information 

Validate and verify the accuracy of the information gathered through the questionnaires with business process owners and business unit coordinators. 

As you analyze information, identify the business functions that are vital to keeping your business moving forward. List down these processes along with the necessary resources such as employees, raw materials, equipment, etc. that are needed to keep them operating and establish a timeline and budget for their recovery. 

This way when one of the processes gets disrupted, you will know which one to reinstate first and easily determine which resources are absolutely essential.  

Document and Present Findings

During this phase of the analysis, you need to prepare the executive summary and the BIA report. The objective of the business impact analysis report is to provide the necessary insight the senior management needs to develop data-backed recovery strategies. 

While the report should include recovery priorities supported by data graphs, charts, and other visual aids, present the findings, recommendations, and subsequent steps to the senior management in both written and oral reports. 

The BIA must be re-visited and updated as the business changes due to organizational and technological changes. 

BIA Templates

Blank business impact analysis.

Blank Business Impact Analysis

Business Impact Analysis Report Template

Business Impact Analysis Report Template

How Can Creately Help When Conducting a BIA

Visual tools to communicate and collaborate better.

You can create anything from simple flowcharts to complex work breakdown structures with Crately’s standard shape libraries for over 50 types of diagrams. Whether you are simply mapping a process, creating visual aids for your BIA report, or putting together a dashboard for a presentation, you can easily do it on Creately.  

Centralize all your information

Bring in all information about your business processes, stakeholders, and teams onto the canvas with integrated notes and database capabilities. Creately has full-on documents for every single shape on the workspace, letting you store a multitude of information whether it’s a step in a process map or a cell in a stakeholder registry . Create a single source of truth for your teams during your BIA project.  

Coordinate all your work in a single place  

Creately’s built-in agile project management tools , including project views (i.e Kanban boards, timelines, Gantt charts, etc.), role assignment, progress tracking, and integrations, allows teams to streamline running their projects right inside the app. 

Real-time collaboration    

Keep your team engaged and collaborate like you are in the same room despite where you are. Real-time mouse tracking, synced previews, comments and discussion threads, advanced sharing and permissions, and version history to keep track of changes.  

Got More Tips on Doing a Business Impact Analysis?

Conducting a business impact analysis can be time-consuming and require considerable effort, but the outcome can be instructive and valuable. At the end of it, you will have gained valuable insight into your organization and its functions that is necessary to move it forward. 

We hope this guide will help you conduct a successful BIA. 

Got any more tips to share? Let us know in the comments section below. 

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

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