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What is the main focus of a business impact analysis (BIA)?

Employee training

Asset valuation

Risk quantification

Potential effects of a disruption

The main focus of a business impact analysis (BIA) is to assess the potential effects of a disruption on business operations. A BIA identifies critical business functions and the impact that a disruption—whether from natural disasters, cyberattacks, or other events—could have on these functions. This process helps organizations understand the implications of interruptions, allowing them to prioritize recovery efforts based on the severity of potential impacts on organizational performance, resources, and customer services.

In conducting a BIA, organizations evaluate how long they can sustain disruptions in various operations without suffering irreparable harm. This insight is crucial for developing effective business continuity plans that ensure essential functions can be maintained or quickly restored following a disruption.

While aspects like employee training, asset valuation, and risk quantification are important in the broader context of organizational risk management and business continuity, the central goal of a BIA revolves around understanding and mitigating the effects of disruptions on business processes and overall organizational stability.

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