The identification of business functions is a foundational activity within the Business Continuity Management System (BCMS), as required by ISO 22301:2019.
This step establishes a structured understanding of what the organisation does, enabling the organisation to determine which activities are essential to delivering products and services that meet business objectives, customer needs, and regulatory obligations.
In accordance with ISO 22301 Clause 8.2 (Business Impact Analysis and Risk Assessment), organisations are required to identify and analyse activities that support the delivery of priority products and services.
The completion of Part 1: Identification of Business Functions fulfils this requirement by systematically documenting business functions performed by each business unit, ensuring that subsequent BIA activities are consistent, complete, and aligned to the scope of the BCMS.
This chapter guides business units in identifying and describing their business functions in a clear, concise, and standardised manner, providing a reliable baseline for assessing disruption impacts, recovery priorities, dependencies, and continuity strategies.
The primary objective of Part 1: Identification of Business Functions is to identify, document, and define business functions that support the organisation’s priority products and services, in line with ISO 22301 BCMS requirements.
Specifically, this step aims to:
Establish a comprehensive inventory of business functions within the defined BCMS scope
Enable the organisation to analyse the impact of disruptions to these functions in later BIA stages
Support the determination of prioritised activities, as required by ISO 22301
Ensure consistency and traceability between:
Business functions
Products and services
Recovery objectives
Continuity and recovery strategies
This step ensures that no critical activities are overlooked and that the BIA focuses on business-relevant outcomes rather than detailed process mapping.
The identification of business functions directly supports the following ISO 22301 requirements:
Clause 4 – Context of the Organisation
Ensures business functions align with internal operations that support the organisational purpose and strategic direction.
Clause 8.2.2 – Business Impact Analysis
Requires identifying activities that support the delivery of products and services, and assessing the impacts of disruptions over time.
Clause 8.3 – Business Continuity Strategy
Relies on clearly defined business functions to determine appropriate continuity and recovery solutions.
By completing Part 1, organisations create a structured input into the BCMS that supports auditability, repeatability, and continual improvement.
The template captures essential information for each business function, ensuring clarity, consistency, and traceability throughout the BCMS lifecycle.
The Business Function Name represents a distinct activity or group of activities performed by a business unit that contributes to delivering products or services.
Guidelines:
Use concise, meaningful names (typically no more than three words)
Focus on what is done, not how it is done
Exclude non-essential or convenience activities
Where activities are minor or closely related, group them into a single logical function
As a general guideline, each business unit should identify approximately five key business functions, ensuring the list remains manageable while covering all essential activities.
Each business function should be assigned a unique function code, typically comprising:
A business unit acronym, and
A sequential number (e.g., OPS-01, FIN-03)
Purpose of the code:
Enables consistent reference across BIA worksheets
Supports traceability in recovery planning, testing, and audits
Facilitates reporting and management review under the BCMS
The description provides a brief explanation of what the business function does and the outcome it delivers.
Requirements:
One concise sentence (preferably under 20 words)
Start with an action verb
Focus on business outcomes, not detailed procedures
Avoid technical or system-specific language
Well-written descriptions support:
Clear understanding by stakeholders
Consistent interpretation during impact analysis
Alignment with ISO 22301’s outcome-focused approach
| Business Function | Description |
|---|---|
| Staff Training | Provide the required skills and knowledge to support operational readiness |
| Inventory Management | Maintain optimal inventory levels to meet customer demand |
| Workplace Safety | Ensure a safe working environment for staff and visitors |
| Order Fulfilment | Process and dispatch customer orders accurately and on time |
| Sales Promotion | Execute approved sales and marketing campaigns |
The identification of business functions is a critical enabler of an effective Business Continuity Management System.
By clearly defining the organisation's activities and why they matter, this step ensures the Business Impact Analysis is structured, relevant, and aligned with ISO 22301 requirements.
A well-executed Part 1 provides the foundation for:
To learn more about the course and schedule, click the buttons below for the BCM-300 Business Continuity Management Implementer [BCM-3] and the BCM-5000 Business Continuity Management Expert Implementer [BCM-5].
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