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.
|
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. |
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.
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