[BCM] [Damanat] [E2] [C4] [P4] Business Impact Analysis

 Implementing the Business Impact Analysis Phase in the Saudi Mortgage Guarantees Services Company BCM Planning Methodology 

 

Introduction

This chapter is the 4th instalment of the BIA planning process and will cover:

• Part 10: Determining the Maximum Tolerable Period of Disruption

• Part 11: Determining Recovery Time Objectives

• Part 12: Determining Recovery Point Objectives

• Part 13: Establishing Minimum Business Continuity Objectives

Part 10: Determining the Maximum Tolerable Period of Disruption (MTPD)

The Maximum Tolerable Period of Disruption (MTPD) is the maximum duration a Critical Business Function (CBF) can remain unavailable before the consequences become unacceptable to Damanat. It establishes the outer limit of disruption tolerance and provides the basis for determining appropriate Recovery Time Objectives (RTOs).

Unlike the RTO, the MTPD does not represent the target recovery time. Instead, it defines the point beyond which Damanat would no longer be able to meet its statutory responsibilities, maintain stakeholder confidence, or operate within acceptable regulatory and business tolerances.

When determining the MTPD, Damanat should consider:

• Statutory and regulatory obligations.
• Public-interest responsibilities.
• Service commitments to financial institutions.
• Financial consequences.
• Accumulation of operational backlogs.
• Reputational consequences.
• Dependency failures.
• Technology constraints.
• Executive risk appetite.

The MTPD should never be selected solely because it is operationally convenient or aligns with existing recovery capabilities. It should reflect the point at which business impacts become unacceptable.

Table BIA 4.5: Indicative Maximum Tolerable Period of Disruption (MTPD)

Illustrative values only – subject to Business Impact Analysis validation and Senior Management approval.

CBF Code	Critical Business Function	Indicative MTPD	Primary Impact Driving MTPD	Key Assumption	Validation Required
CBF-1	Mortgage Guarantee Origination	48 Hours	Operational backlog and stakeholder impact	Core ICT services recover within the target	Yes
CBF-2	Guarantee Risk Assessment	48 Hours	Credit risk exposure	Risk models available	Yes
CBF-3	Guarantee Issuance and Administration	72 Hours	Delayed guarantee issuance	Manual administration partially available	Yes
CBF-4	Claims Assessment and Settlement	5 Days	Customer and financial impact	Claims intake continues manually	Yes
CBF-5	Financial and Treasury Management	5 Days	Liquidity and financial control	Banking services remain available	Yes
CBF-6	Enterprise Risk Management	1 Week	Reduced enterprise oversight	Operational risk monitoring continues manually	Yes
CBF-7	Regulatory Compliance and Reporting	72 Hours	Regulatory obligations	Regulatory reporting deadlines unchanged	Yes
CBF-8	Information Technology Services	24 Hours	Enterprise ICT disruption	Disaster Recovery available	Yes
CBF-9	Information Security and Cyber Resilience	24 Hours	Cybersecurity exposure	Compensating controls activated	Yes
CBF-10	Customer & Financial Institution Relationship Management	72 Hours	Stakeholder confidence	Alternative communications available	Yes
CBF-11	Legal and Corporate Governance	5 Days	Governance decisions delayed	External legal support available	Yes
CBF-12	Human Resource Management	1 Week	Workforce administration	Manual HR processes available	Yes
CBF-13	Procurement and Vendor Management	1 Week	Supplier management delays	Existing contracts remain valid	Yes
CBF-14	Corporate Communications and Stakeholder Management	48 Hours	Reputational impact	Alternative communication channels available	Yes
CBF-15	Business Continuity and Crisis Management	24 Hours	Enterprise recovery coordination	Crisis team activated immediately	Yes

Observations

The indicative MTPDs demonstrate that business functions supporting Damanat's core mortgage guarantee operations, ICT services and cybersecurity have significantly lower disruption tolerances than supporting administrative activities. This distinction enables management to prioritise recovery investments where they will provide the greatest organisational benefit.

 

Part 11: Determining Recovery Time Objectives (RTO)

The Recovery Time Objective (RTO) is the target time within which a Critical Business Function should be resumed at a predefined minimum service level following a disruption.

The RTO is one of the most important outputs of the Business Impact Analysis because it establishes the recovery target that Business Continuity Strategies, ICT Disaster Recovery capabilities and Business Continuity Plans must be designed to achieve.

Unlike the MTPD, which defines the maximum tolerable interruption, the RTO should provide sufficient time for recovery activities to stabilise operations before unacceptable impacts occur.

An effective RTO should be:

• Shorter than the applicable MTPD.
• Operationally achievable.
• Supported by ICT recovery capability.
• Based on business requirements rather than technology limitations.
• Validated through exercises and recovery testing.
• Approved by management.

Table BIA 4.6: Indicative Recovery Time Objectives for Damanat

Illustrative values only – subject to validation.

CBF Code	Critical Business Function	Indicative RTO	Indicative MTPD	Minimum Service to be Resumed	Principal Dependency	RTO Rationale
CBF-1	Mortgage Guarantee Origination	12 Hours	48 Hours	Priority mortgage guarantee processing	ICT, Credit Bureau	Prevent excessive application backlog
CBF-2	Guarantee Risk Assessment	12 Hours	48 Hours	Priority guarantee assessments	Risk systems	Maintain underwriting capability
CBF-3	Guarantee Issuance and Administration	24 Hours	72 Hours	Priority certificate issuance	Document management	Continue guarantee delivery
CBF-4	Claims Assessment and Settlement	24 Hours	5 Days	Priority claims assessment	Claims system	Maintain financial obligations
CBF-5	Financial and Treasury Management	24 Hours	5 Days	Essential financial processing	ERP, Banking	Preserve financial control
CBF-6	Enterprise Risk Management	48 Hours	1 Week	Risk monitoring	Risk systems	Maintain governance
CBF-7	Regulatory Compliance and Reporting	24 Hours	72 Hours	Mandatory regulatory reporting	Reporting systems	Meet supervisory expectations
CBF-8	Information Technology Services	8 Hours	24 Hours	Core ICT services	Data Centre	Support all operational CBFs
CBF-9	Information Security and Cyber Resilience	4 Hours	24 Hours	Cyber monitoring	SOC, Identity Services	Reduce cyber exposure
CBF-10	Customer & Financial Institution Relationship Management	24 Hours	72 Hours	Priority stakeholder communications	CRM	Maintain confidence
CBF-11	Legal and Corporate Governance	48 Hours	5 Days	Critical legal advice	Legal systems	Support executive decisions
CBF-12	Human Resource Management	72 Hours	1 Week	Staff mobilisation	HRIS	Support recovery operations
CBF-13	Procurement and Vendor Management	72 Hours	1 Week	Critical supplier support	Procurement system	Maintain supplier continuity
CBF-14	Corporate Communications and Stakeholder Management	12 Hours	48 Hours	Emergency communications	Communications systems	Protect organisational reputation
CBF-15	Business Continuity and Crisis Management	2 Hours	24 Hours	Crisis coordination	Executive Management	Coordinate enterprise recovery

Alignment between Business and ICT Recovery

Business recovery objectives cannot be achieved unless supporting technology is restored first.

Consequently, ICT Disaster Recovery objectives should be derived from approved business RTOs rather than established independently.

For example:

• CBF-1 cannot resume within 12 hours if the Mortgage Guarantee Processing System requires 24 hours to recover.
• CBF-9 Information Security should recover before most operational functions because secure ICT services are a prerequisite for safe recovery.
• Business Continuity and Crisis Management should be operational within 2 hours to coordinate enterprise-wide recovery activities.

Accordingly, ICT recovery strategies, supplier service levels and infrastructure resilience should all be designed to support the approved business recovery objectives.

Part 12: Determining Recovery Point Objectives (RPO)

While the RTO addresses how quickly a business activity should be resumed, the Recovery Point Objective (RPO) addresses how much information loss is acceptable following a disruption.

The RPO is measured as the maximum acceptable period of data loss and is particularly relevant for information-intensive business activities and systems.

For Damanat, RPOs are especially important for systems that support mortgage guarantee processing, financial transactions, regulatory reporting, and cybersecurity. They should reflect:

• Transaction volumes.
• Business sensitivity of the information.
• Ability to reconstruct lost data.
• Legal and evidential requirements.
• Data integrity expectations.
• Backup and replication capability.
• Cost and operational impact of data loss.

Table BIA 4.7: Indicative Information Recovery Requirements

Critical Business Function	Key Information or System	Indicative RPO	Data Loss Consequence	Reconstruction Capability	Validation Required
Mortgage Guarantee Origination	Mortgage Guarantee Processing System	15 Minutes	Lost applications and transaction records	Limited	Yes
Guarantee Risk Assessment	Risk Assessment Database	30 Minutes	Incomplete underwriting information	Moderate	Yes
Guarantee Issuance & Administration	Guarantee Register	30 Minutes	Missing guarantee records	Moderate	Yes
Claims Assessment	Claims Database	1 Hour	Delayed claims processing	Moderate	Yes
Financial & Treasury Management	Financial Transactions	15 Minutes	Financial reconciliation issues	Low	Yes
Regulatory Compliance	Regulatory Reporting Database	1 Hour	Inaccurate regulatory reporting	Moderate	Yes
Information Technology Services	Configuration Repository	4 Hours	Delayed infrastructure recovery	High	Yes
Information Security	Security Logs and SIEM	Near Zero to 15 Minutes	Loss of forensic evidence	Very Limited	Yes
Customer Relationship Management	CRM Database	1 Hour	Customer information loss	Moderate	Yes
Business Continuity & Crisis Management	Incident Management Records	15 Minutes	Loss of crisis decision records	Limited	Yes

Part 13: Establishing Minimum Business Continuity Objectives (MBCO)

The Minimum Business Continuity Objective (MBCO) defines the minimum acceptable level of products, services or activities that must continue during a disruption.

Unlike the RTO, which specifies when recovery should occur, the MBCO specifies what minimum level of service must be delivered while full operations are being restored.

The MBCO should be measurable and may be expressed in terms of:

• Percentage of normal operational capacity.
• Number of priority mortgage guarantee applications processed.
• Essential regulatory reporting obligations fulfilled.
• Minimum service hours maintained.
• Maximum acceptable backlog.
• Minimum staffing levels.
• Minimum ICT service availability.

Table BIA 4.8: Indicative Minimum Business Continuity Objectives

CBF Code	Critical Business Function	Indicative MBCO	Priority Activities	Activities That May Be Deferred	Maximum Deferral Period	Validation Required
CBF-1	Mortgage Guarantee Origination	Process 40% of priority applications	Priority mortgage guarantees	Non-urgent applications	5 Days	Yes
CBF-2	Guarantee Risk Assessment	Assess priority guarantees only	High-risk assessments	Low-risk reviews	5 Days	Yes
CBF-3	Guarantee Issuance & Administration	Issue approved priority guarantees	Priority certificates	Routine administrative updates	1 Week	Yes
CBF-4	Claims Assessment	Process urgent claims	High-priority settlements	Routine claims reviews	1 Week	Yes
CBF-5	Financial & Treasury Management	Maintain essential financial controls	Payments and liquidity	Non-essential reporting	1 Week	Yes
CBF-6	Enterprise Risk Management	Monitor significant enterprise risks	Executive reporting	Routine assessments	2 Weeks	Yes
CBF-7	Regulatory Compliance	Meet mandatory regulatory deadlines	Statutory reporting	Advisory activities	1 Week	Yes
CBF-8	Information Technology Services	Restore all critical business systems	Core infrastructure	Enhancement activities	2 Weeks	Yes
CBF-9	Information Security	Maintain continuous cyber monitoring	Threat detection	Improvement initiatives	2 Weeks	Yes
CBF-10	Customer & Financial Institution Relationship Management	Respond to priority stakeholder enquiries	Critical communications	Routine relationship activities	1 Week	Yes
CBF-11	Legal & Corporate Governance	Provide essential legal advice	Critical governance support	Routine legal reviews	2 Weeks	Yes
CBF-12	Human Resource Management	Support recovery staffing	Staff mobilisation	Routine HR administration	2 Weeks	Yes
CBF-13	Procurement & Vendor Management	Maintain critical supplier support	Emergency procurement	Strategic sourcing	2 Weeks	Yes
CBF-14	Corporate Communications	Issue essential communications	Crisis communications	Routine media activities	1 Week	Yes
CBF-15	Business Continuity & Crisis Management	Maintain full crisis coordination capability	Incident management	Programme improvement	Not Applicable	Yes

Relationship Between MTPD, RTO, RPO and MBCO

The four key BIA outputs are complementary and support different management decisions:

• MTPD defines the maximum acceptable duration of disruption.
• RTO establishes the target time to restore a function before the MTPD is reached.
• RPO determines the maximum acceptable loss of information following disruption.
• MBCO specifies the minimum level of service that must be maintained during recovery.

Together, these outputs provide the foundation for developing recovery strategies, ICT Disaster Recovery capabilities and Business Continuity Plans that are aligned with Damanat's operational, regulatory and stakeholder requirements.

End of Part 4

The next instalment will cover:

• Part 14: Minimum Personnel Requirements (Table BIA 4.9)
• Part 15: Supporting Technology Requirements (Table BIA 4.10)
• Part 16: Vital Records and Information Requirements (Table BIA 4.11)
• Part 17: Internal CBF Dependency Matrix (Table BIA 4.12)
• Part 18: External Dependency Assessment (Table BIA 4.13)
• Part 19: Facility and Recovery-Location Requirements (Table BIA 4.14)
• Part 20: Manual Workaround Assessment (Table BIA 4.15)