[BCM] [FP] [E2] [C3] Business Impact Analysis

Chapter 3

For Frasers Property

Introduction

The Business Impact Analysis (BIA) phase is critical to Frasers Property's Business Continuity Management (BCM) planning methodology. This phase helps identify and prioritise business functions and processes essential for the organisation’s ongoing operations.

The BIA phase assesses the potential impacts of disruptions, informing decision-making and resource allocation, and ensuring that Frasers Property can maintain critical operations during and after any disruptive event.

This chapter will explore the BIA process, outline its key steps, and explain how it integrates with Frasers Property’s overall BCM strategy.

Understanding the Business Context

Before initiating the BIA, it is essential to understand the business context of Frasers Property. The company’s portfolio includes residential, commercial, retail, and industrial properties, and it has a diverse range of stakeholders, including customers, tenants, investors, and regulatory bodies.

Each business unit has specific operational needs, and the BIA must account for these unique requirements to ensure resilience across the entire organisation.

Key Activities

• Review the organisational structure and key business functions.
• Map out critical dependencies between business units, partners, and third parties.
• Understand the broader industry environment and market conditions that could impact operations.

Identifying Critical Business Functions

The next step is to identify which business functions are essential for the continued operation of Frasers Property.

This includes functions directly impacting revenue, customer service, compliance, and reputation.

Key Activities

• Conduct workshops and interviews with business leaders to identify key processes and activities that drive business success.
• Document these processes and rank them based on their importance to the company’s mission.
• Create a comprehensive list of all functions, marking those that are time-sensitive or indispensable for survival during a crisis.

Assessing the Impact of Disruptions

Once critical business functions have been identified, the next step is to assess the impact of disruptions on these functions.

This involves considering the financial, operational, legal, and reputational consequences of an event that interrupts a specific function or process.

Key Activities

• Evaluate potential impacts across different timeframes (e.g., immediate, short-term, long-term).
• Assign financial value to each business function, considering lost revenue, legal penalties, or reputational damage.
• Conduct a qualitative assessment of non-financial impacts, such as employee morale or brand equity.

Determining Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO)

Establishing Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) for each business function is essential for prioritising them.

These objectives will help Frasers Property determine how quickly each function needs to be restored and the maximum allowable data loss during an incident.

Key Activities

• Collaborate with departmental heads to define RTOs and RPOs for each critical function.
• Consider factors such as the function’s dependency on technology, staff availability, and the impact on customers.
• Document the RTO and RPO for each function to guide the development of recovery strategies in later phases.

Prioritising Critical Business Functions

With the impacts and recovery objectives in place, the next step is prioritising the business functions according to their criticality.

This helps ensure that resources are allocated efficiently when responding to a disruption.

Key Activities

• Use the data gathered in the previous steps to prioritise functions based on their financial, operational, and reputational importance.
• Rank functions based on their RTO and RPO, considering dependencies between them.
• Identify the most critical functions that must be restored immediately to minimise operational downtime.

Identifying Dependencies and Interdependencies

An effective BIA for Frasers Property should also consider the dependencies and interdependencies between business units, systems, and third-party suppliers.

Disruptions to any part of the organisation can cascade effects across other functions.

Key Activities

• Map out internal and external dependencies for each critical function.
• Identify key suppliers, service providers, and partners whose services or products are essential for business operations.
• Analyse how disruptions to these dependencies could affect Frasers Property’s ability to recover its critical functions.

Reviewing Legal and Regulatory Considerations

Frasers Property must also account for any legal or regulatory requirements related to its operations during the BIA phase.

For instance, certain business functions may be subject to industry-specific regulations, or the company may have obligations to its tenants and customers during a crisis.

Key Activities

• Review relevant laws and regulations that could impact business continuity, particularly those governing real estate operations.
• Consult with legal advisors to ensure compliance during business interruptions.
• Include any contractual obligations with tenants, clients, or service providers that may influence recovery strategies.

Documenting Findings and Establishing a BIA Report

Once all assessments have been completed, the findings should be documented in a comprehensive BIA report. This report will serve as the foundation for developing the company’s BCM strategy, guiding the allocation of resources and defining recovery priorities.

Key Activities

• Compile all findings into a concise report outlining the critical business functions, disruption impacts, recovery objectives, and dependencies.
• Present the BIA findings to senior management and key stakeholders for review and validation.
• Use the report as a reference for designing the BCM Plan in subsequent phases.

Summing Up …

The Business Impact Analysis phase is a cornerstone of Frasers Property’s BCM planning methodology.

By identifying critical business functions, assessing the potential impacts of disruptions, and setting recovery priorities, the BIA helps to ensure that the organisation can recover quickly and effectively from a crisis.

With this comprehensive understanding, Frasers Property is better positioned to develop and implement a robust BCM strategy that will protect its assets, reputation, and stakeholders against unforeseen events.

In the next chapter, we will develop recovery strategies, building on the insights gained from the BIA phase.