[BCM] [Damanat] [E3] [BIA] [P2] [CBF] [1] Impact Area of Business Functions

BIA Part 2: Impact Area of Business Functions

CBF-1 Mortgage Guarantee Origination

The second stage of the Business Impact Analysis (BIA) evaluates the consequences of disruption to each Sub-Critical Business Function (Sub-CBF) that supports Mortgage Guarantee Origination.

While the previous stage identified the essential business functions and their corresponding Business Unit Minimum Business Continuity Objectives (BU MBCOs), this stage examines the operational, financial, regulatory, and stakeholder impacts that may arise if those functions become unavailable.

Analysing business impacts by distinct impact areas enables Damanat to understand the nature and severity of disruption from multiple perspectives.

For example, a disruption to application intake may primarily affect operations and customer service, whereas a failure in compliance review could expose the organisation to regulatory breaches.

Assessing each impact area independently provides management with a more comprehensive understanding of organisational vulnerabilities and supports informed recovery planning.

Estimating indicative financial losses further assists decision-makers in prioritising recovery investments, allocating resources, and determining acceptable levels of operational risk.

Although these estimates are intended for Business Impact Analysis rather than financial reporting, they provide a practical basis for comparing the relative importance of business functions and selecting appropriate continuity strategies.

The outputs from this assessment also serve as key inputs into Recovery Time Objective (RTO) determination, Business Continuity Strategy development, and Business Continuity Plan (BCP) preparation.

Table BIA P2: Impact Area of Business Functions for CBF-1 Mortgage Guarantee Origination

Sub-CBF Code	Sub-CBF	Impact Area	Financial Impact – Monetary Loss (Estimated)	Financial Impact – Calculation of Monetary Loss	Impact on MBCO – Affect MBCO	Impact on MBCO – Impact	Remarks – Description
1.1	Mortgage Guarantee Application Intake	Operational	SAR 150,000/day	Additional Labour Cost + Delayed Application Processing Cost	Receive and register priority guarantee applications	Priority applications cannot be accepted promptly, creating processing backlogs.	Delays affect lenders, borrowers, and downstream assessment activities.
1.2	Application Validation	Operational	SAR 120,000/day	Manual Validation Cost + Delayed Processing Cost	Validate priority applications for completeness	Incomplete applications proceed slowly, increasing turnaround times.	Processing efficiency declines and error rates increase.
1.3	Borrower Eligibility Assessment	Regulatory	SAR 350,000/day	Cost of Delayed Guarantees + Remediation Cost	Assess borrower eligibility for priority applications	Essential borrower assessments cannot be completed, delaying approvals.	Delayed lending decisions affect programme objectives and stakeholder confidence.
1.4	Property Eligibility Assessment	Operational	SAR 250,000/day	Delayed Property Assessments + Additional Review Cost	Review the eligibility of priority properties	Property verification cannot support approval of guarantees.	Mortgage guarantee issuance is postponed pending verification.
1.5	Mortgage Risk Assessment	Financial	SAR 500,000/day	Potential Credit Exposure + Operational Recovery Cost	Complete essential risk assessments	Risk-informed approval decisions cannot be performed.	Increased exposure to guarantee losses and inappropriate approvals.
1.6	Guarantee Policy Compliance Review	Regulatory	SAR 600,000/day	Regulatory Non-Compliance Cost + Corrective Action Cost	Perform mandatory compliance reviews	Regulatory and internal policy compliance cannot be confirmed before approval.	Elevated regulatory exposure and governance deficiencies.
1.7	Financial Institution Verification	Third-Party Dependency	SAR 180,000/day	Delayed Processing Cost + Manual Verification Cost	Verify participating financial institutions	Lender eligibility cannot be confirmed before the guarantee is issued.	Increased operational risk and potential unauthorised participation.
1.8	Guarantee Approval Decision	Operational	SAR 700,000/day	Delayed Guarantee Value + Operational Recovery Cost	Approve priority guarantee applications	Delegated approval decisions cannot be completed.	Mortgage guarantee issuance effectively stops during disruption.
1.9	Guarantee Certificate Generation	Customer / Stakeholder	SAR 300,000/day	Delayed Certificate Issuance + Manual Processing Cost	Issue guarantee certificates	Approved guarantees cannot be formalised for participating lenders.	Lenders cannot complete financing transactions requiring guarantee documentation.
1.10	Guarantee Registration	Information	SAR 220,000/day	Data Reconstruction Cost + Operational Recovery Cost	Record approved guarantees	Official guarantee records cannot be maintained accurately.	Audit trail and guarantee tracking are compromised.
1.11	Stakeholder Notification	Reputation	SAR 180,000/day	Communication Recovery Cost + Service Delay Cost	Notify stakeholders of guarantee decisions	Priority decisions cannot be communicated within agreed service levels.	Reduced stakeholder confidence and increased enquiries.
1.12	Documentation and Record Management	Information	SAR 450,000/day	Record Recovery Cost + Compliance Remediation Cost	Maintain secure guarantee records	Critical documentation becomes inaccessible or incomplete.	Audit readiness and regulatory compliance are adversely affected.
1.13	Guarantee Fee Administration	Financial	SAR 150,000/day	Estimated Lost Fees + Deferred Collection Cost	Process guarantee fee administration	Fee calculation and recording activities cannot be completed accurately.	Revenue recognition and financial reconciliation are delayed.
1.14	Post-Issuance Quality Assurance	Regulatory	SAR 200,000/day	Rework Cost + Compliance Review Cost	Perform quality assurance for priority cases	Critical quality reviews are deferred, increasing the number of undetected errors.	Process deficiencies remain unresolved and regulatory risk increases.
1.15	Management Reporting and Regulatory Monitoring	Regulatory	SAR 500,000/day	Regulatory Reporting Delay Cost + Management Response Cost	Produce essential operational and regulatory reports	Executive oversight and regulatory reporting obligations cannot be fulfilled effectively.	Reduced management visibility, delayed decisions, and potential regulatory scrutiny.

Banner [BCM] [E3] [BIA] [Summing Up] [P2] Impact Areas of Business Functions [BIAQ]

Assessing the impact areas associated with each Sub-Critical Business Function provides a structured understanding of the operational and business consequences that may arise when essential activities are disrupted.

By distinguishing among financial, regulatory, operational, technological, informational, and stakeholder impacts, Damanat can evaluate not only the magnitude of disruption but also the nature of risks requiring targeted mitigation.

Indicative financial impact estimates provide management with a practical basis for evaluating recovery priorities, allocating continuity resources, and justifying investments in resilience capabilities.

Although these estimates are not intended for accounting purposes, they support objective comparisons between business functions and help identify those requiring the fastest recovery.

The outputs from this assessment form an essential component of the Business Impact Analysis (BIA).

They support the determination of Recovery Time Objectives (RTOs), guide the selection of appropriate Business Continuity Strategies, influence resource prioritisation, and provide the operational context for developing effective Business Continuity Plans (BCPs).

By understanding the consequences of disruption across multiple impact areas, Damanat strengthens its ability to maintain critical mortgage guarantee services, fulfil regulatory obligations under the oversight of the Saudi Central Bank (SAMA), and enhance its overall organisational resilience.

eBook 3: Starting Your BCM Implementation
MBCO	P&S	RAR T1	RAR T2	RAR T3	BCS T1	CBF

CBF-1 Mortgage Guarantee Origination
DP	BIAQ P1	BIAQ P2	BIAQ P3	BIAQ P4	BIAQ P5	BIAQ P6

		BCS T2	BCS T3	PD

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