[BCM] [CFF] [E2] [C5] Business Impact Analysis for CFF Malaysia

The Business Impact Analysis (BIA) phase is a critical component of Classic Fine Foods (CFF) Malaysia's business continuity management (BCM) planning process.

It serves as the foundation for identifying and prioritising the organization’s critical business functions, assessing the potential impacts of disruptions, and determining recovery objectives.

The BIA phase aligns with ISO 22301 requirements, ensuring that Classic Fine Foods Malaysia is well-prepared to maintain operational resilience in the face of disruptions.

This chapter outlines the methodology for conducting a BIA, including the steps, tools, and techniques required to identify critical processes, assess impacts, and establish recovery time objectives (RTOs) and recovery point objectives (RPOs).

The BIA's outcomes will inform the development of effective business continuity strategies and plans.

---

Objectives of the BIA Phase

The primary objectives of the BIA phase are:

1. Identify Critical Business Functions: Determine the key processes and activities essential for Classic Fine Foods Malaysia’s operations.

2. Assess the Impact of Disruptions: Evaluate the financial, operational, legal, regulatory, and reputational impacts of disruptions to critical functions.

3. Establish Recovery Objectives: Define RTOs and RPOs for each critical function to ensure timely recovery.

4. Prioritise Resources: Allocate resources effectively to protect and recover critical functions.

5. Support Decision-Making: Provide data-driven insights to guide the development of business continuity strategies.

Methodology for Conducting the BIA

The BIA process for Classic Fine Foods Malaysia involves the following steps:

Define Scope and Objectives

• Clearly define the scope of the BIA, including the departments, processes, and locations to be assessed.

• Establish the objectives of the BIA in alignment with ISO 22301 requirements and organisational goals.

Identify Critical Business Functions

• Engage stakeholders from across the organisation to identify and document critical business functions.

• Use workshops, interviews, and surveys to gather input from key personnel.

• Categorise functions based on their importance to the organisation’s operations, revenue generation, and compliance requirements.

Assess the Impact of Disruptions

• Evaluate the potential impacts of disruptions to critical functions over time. Consider:

  • Financial Impact: Loss of revenue, increased costs, and penalties.

  • Operational Impact: Delays in production, delivery, or service.

  • Legal and Regulatory Impact: Non-compliance with laws or regulations.

  • Reputational Impact: Damage to brand reputation and customer trust.

• Use qualitative and quantitative methods to assess impacts, such as impact matrices and scenario analysis.

Determine Recovery Objectives

• Define Recovery Time Objectives (RTOs): The maximum acceptable time to restore critical functions after a disruption.

• Define Recovery Point Objectives (RPOs): The maximum acceptable data loss measured in time.

• Based on available resources and capabilities, ensure realistic and achievable RTOs and RPOs.

Validate and Prioritise Findings

• Validate the results of the BIA with stakeholders to ensure accuracy and completeness.

• Prioritize critical functions based on their impact and recovery requirements.

Document BIA Results

• Compile the findings of the BIA into a comprehensive report, including:

  • List of critical business functions.

  • Impact assessments and recovery objectives.

  • Recommendations for business continuity strategies.

---

Tools and Techniques for BIA

To ensure a thorough and effective BIA, Classic Fine Foods Malaysia will utilize the following tools and techniques:

• Stakeholder Workshops: Facilitate collaborative sessions to gather input and validate findings.

• Surveys and Questionnaires: Collect data from employees and stakeholders on critical functions and impacts.

• Impact Matrices: Visualize the severity of impacts over time for different scenarios.

• Scenario Analysis: Simulate potential disruptions to assess their effects on critical functions.

• Risk Assessment Integration: Incorporate risk assessment data to identify potential threats and vulnerabilities.

BCM Institute will provide the template with explanatory notes. If the course is conducted in-house, the templates will be tailored to CFF Malaysia's requirements.

---

Challenges and Mitigation Strategies

Conducting a BIA may present several challenges, including:

• Lack of Stakeholder Engagement: Ensure active participation by clearly communicating the importance of the BIA and involving key stakeholders early in the process.

• Data Accuracy: Use multiple data sources and validation techniques to ensure the accuracy of impact assessments.

• Resource Constraints: Allocate sufficient time, budget, and personnel to conduct a thorough BIA.

---

Outputs of the BIA Phase

The key outputs of the BIA phase include:

1. BIA Report: A detailed document outlining critical functions, impact assessments, and recovery objectives.

2. Prioritized Critical Functions: A ranked list of functions based on their importance and recovery requirements.

3. Recovery Objectives: Defined RTOs and RPOs for each critical function.

4. Recommendations for Business Continuity Strategies: Insights to guide the development of strategies and plans.

In-house Training	Business Impact Analysis Phase [3-hour online workshop]
Course Code	WSQ-BCM-310 Session 2
	Participants will be: Attending a 1-hour BIA eLearning workshop to have a complete understanding of the concepts of business impact analysis Competing 1st attempt on the BIA Questionnaires Attending a 3-hour online BIA workshop Revising the content and submitting the revised business unit's BIA submission to the instructor for review after the workshop Revising for version 2.0 to be submitted to the Organisation BCM coordinator for compilation of the BIA report for management approval

 

Driving Business Continuity: Implementing BCM for Classic Fine Foods Malaysia
Implementing Business Continuity: A Step-by-Step Guide for Classic Fine Foods Malaysia