The importance of Business Impact Analysis

One of the key parts of Business Continuity Planning is to consider the impact to the business following an incident. A Business Impact Analysis can help a business understand what their dependencies are, and what their priorities should be in the event of an incident.



Having an adequate and up to date Business Continuity Plan will help minimise the impact of an incident and maximise the businesses ability to recover. The Business Impact Analysis looks at all areas of the business to understand how they earn their income and what products, services, activities or resources deliver this income. It also looks at facilities, staff or equipment to make sure the business can keep trading following an interruption.


The three stages to Business Impact Analysis:

1. Strategic Business Impact Analysis

This should be completed by the businesses management team and it needs to identify the key products or services and essential recovery timescales. This introduces a Maximum Tolerable Period of disruption for each - this is the time it would take for negative impacts on the business to hit such as their customers going elsewhere. This determines the Recovery Time Objective – the length of time that the business must recover by.

2. Tactical Business Impact Analysis

Taking the details from the Strategic Business Impact Analysis it’s important to assess the processes that would be needed to provide the key products or services to the recognised key customers, within the Recovery Time Objective.

3. Operational Business Impact Analysis

This assesses the activities required for the processes needed to achieve the Recovery Time Objective. It will also look at who needs to be involved as well as what premises resources and suppliers are needed.


The purpose of these three stages:

  • A list of the key products and services
  • A Maximum Tolerable Period of disruption for the business
  • A recovery point objective
  • Priorities for mitigation and recovery options to support recovery
  • A framework to provide an acceptable level of service to key customers.

There are many techniques for gathering the information for a Business Impact Analysis, and the key concept of looking at impact over time. To find out more,  please contact Pete Holmes, business interruption, continuity management and supply chain lead at Aviva, via mobile:07710 748700  or email:

If you’d like more information or assistance visit Aviva Risk Management Solutions or contact us at


Without the right level of BI cover, businesses are at significant increased risk of never recovering following a loss, potentially having devastating consequences for the owner and all associated with the business. Our business interruption calculator uses key information about your clients' business to not only recommend the level of insured profit required but also the indemnity periods should they suffer a major loss.


Article Publish Date: Monday 7 August 2017

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