[BCM] [HH] [E2] [C4] Business Impact Analysis

Chapter 4

As Part of the BCM Planning Methodology for HopeHouse

Introduction to Business Impact Analysis (BIA)

Business Impact Analysis (BIA) is a critical phase in the Business Continuity Management (BCM) lifecycle.

For HopeHouse, a non-profit residential care organisation dedicated to the rehabilitation of at-risk youths, implementing a robust BIA ensures that its core services remain resilient and responsive in the face of disruptions.

HopeHouse’s mission-driven operations, ranging from residential care and counselling to mentorship and reintegration programs, depend heavily on continuity and reliability.

As such, a BIA provides the foundation for identifying essential functions, assessing potential impact, and prioritising recovery efforts.

BIA Objectives for the HopeHouse

The purpose of conducting a BIA at HopeHouse is to:

1. Identify Critical Business Functions and Processes: Determine which operations are essential for the safety, care, and development of residents.
2. Assess Impacts of Disruptions: Understand the consequences of service interruptions on residents, staff, donors, and other stakeholders.
3. Define Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs): Establish acceptable downtimes and data loss thresholds for critical functions.
4. Support Strategy Development: Provide input to formulate effective business continuity strategies tailored to HopeHouse’s unique environment.
   
   

Step-by-Step Implementation of BIA at HopeHouse

1. Preparation and Planning

• Establish BIA Objectives: Tailor the BIA objectives to align with HopeHouse’s core values—compassion, empowerment, and rehabilitation.
• Form the BIA Team: Include residential managers, programme coordinators, social workers, IT support, and representatives from the board of directors.
• Define Scope and Boundaries: Focus on core operations such as:
  • Residential care services
  • Youth rehabilitation programs
  • Counselling and mental health support
  • Outreach and community engagement
  • Donor and volunteer management

2. Data Collection

• Conduct Interviews and Surveys: Gather input from department heads and frontline staff using structured templates.
• Document Functional Activities: For each department, record:
  • Purpose of the function
  • Key personnel
  • Frequency and timing
  • Dependencies (systems, suppliers, people)

Example: Residential Care Services

• Function: 24/7 care for at-risk male youths
• Key Personnel: Residential Manager, Social Workers, Youth Mentors
• Dependencies: Power, water, food supply, security systems, case management records
• System: Youth management database, physical logbooks
• Maximum Tolerable Downtime (MTD): 1 hour
• RTO: Immediate (<1 hour)
• RPO: Real-time data

3. Impact Assessment

Assess the impact of disruption across multiple dimensions:

Each impact is ranked based on severity over time (within 0–4 hours, 4–24 hours, 1–3 days, 3–7 days).

4. Determining RTO and RPO

Each critical function is assigned an RTO and RPO, helping prioritise recovery planning.

Example: Donor Database Access

• RTO: 1 day
• RPO: 12 hours
• Rationale: While donor communication is essential, it is not life-critical and can tolerate short-term delays.

5. Identify Interdependencies

HopeHouse must document both internal and external dependencies that affect continuity:

• Internal: Cross-departmental support (e.g., counselling required by residential staff)
  
  
• External: Partnerships with government agencies (e.g., MSF), third-party suppliers (e.g., food vendors, IT service providers), and utilities

Understanding these dependencies is vital for developing realistic recovery plans.

Key BIA Outputs for HopeHouse

The BIA phase generates several deliverables:

1. BIA Report summarising:
   • Critical business functions
   • Impact assessments
   • RTOs and RPOs
   • Dependencies
     
     
2. Prioritised List of Critical Business Functions to inform resource allocation during disruptions.
   
   
3. BIA Validation Sessions with senior management and stakeholders to ensure alignment
   
   
4. List of Critical Business Functions for HopeHouse:
   • CBF 1: Residential Care and Shelter Operations
   • CBF 2: Counselling and Psychological Support
   • CBF 3: Skills Training and Educational Programs
   • CBF 4: Community Engagement and Service Initiatives
   • CBF 5: Governance and Administrative Functions

Challenges and Considerations for HopeHouse

• Limited Resources: Being a non-profit, HopeHouse must balance financial constraints with resilience planning.
• Resident Vulnerability: The psychological and emotional needs of at-risk youths require that certain services (e.g., supervision, counselling) remain uninterrupted.
• Data Sensitivity: Confidential information on residents must be safeguarded even during crisis recovery.
• Volunteer Dependency: Many programs rely on volunteers, whose availability can be inconsistent during a crisis.
  

Summing Up ...

Conducting a Business Impact Analysis equips HopeHouse with a structured understanding of what matters most during a crisis.

It empowers leadership and staff to prepare effectively, prioritise recovery actions, and ensure continuity of care for some of Singapore’s most vulnerable youths.

By embedding BIA within its BCM framework, HopeHouse reinforces its commitment to compassionate resilience, ensuring that care, safety, and support never stop, even in the face of adversity.

Continuity with Compassion: Implementing BCM at HopeHouse
eBook 2: Implementing BCM Planning Methodology

 

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