The Business Impact Analysis (BIA) phase is a critical component of Business Continuity Management (BCM) planning, particularly for an organisation such as the Islamic Development Bank (IsDB).
The goal of BIA is to assess the operational, financial, and reputational impacts of various disruptions, enabling the organisation to prioritise recovery strategies and allocate resources efficiently.
For IsDB, which serves a vital role in global development finance, understanding the impact of service disruptions across its multiple functions is essential.
This chapter will guide the reader through the BIA phase in the context of IsDB's operations, with a focus on specific CBS and CBF. It will provide a structured approach to conducting the analysis.
The first step in the BIA process is to identify the CBF. These are the core areas critical to IsDB's day-to-day operations, and their disruption can severely affect the bank's ability to achieve its objectives.
Based on the organisational structure of IsDB, the following CBFs are identified:
|
CBF Code |
Critical Business Function (CBF) |
Description |
Why it is Critical to IsDB |
|
CBF-1 |
Financial Operations & Treasury Management |
This function involves managing IsDB's finances, investments, and funding operations. |
It ensures the liquidity and financial stability necessary for the bank’s projects and investments. |
|
CBF-2 |
Project Financing & Investment Management |
Involves funding and managing development projects across member countries. |
A key function of IsDB's mission is to finance development projects in member countries. |
|
CBF-3 |
Human Resources & Workforce Management |
Covers recruitment, training, and management of IsDB's personnel. |
A skilled workforce is essential for executing development projects and maintaining day-to-day operations. |
|
CBF-4 |
Information Technology & Data Management |
Manages IT systems, data, and digital infrastructure to support banking operations. |
IT is essential for ensuring operational efficiency, security, and communication. |
|
CBF-5 |
Risk Management & Compliance |
Oversees the management of risks and ensures compliance with internal policies and external regulations. |
Critical to maintaining the bank's reputation and adhering to international standards. |
|
CBF-6 |
Client Services & Customer Relationship Management |
Manages relationships with IsDB’s stakeholders, including member countries, partners, and clients. |
Essential for IsDB’s reputation and maintaining trust with stakeholders. |
|
CBF-7 |
Legal & Governance |
Ensures compliance with legal frameworks and regulations. |
Provides necessary legal protections for IsDB and its operations. |
|
CBF-8 |
Public Relations & Communications |
Manages public relations and communication strategies. |
Key to managing the bank’s image and maintaining stakeholder confidence. |
|
CBF-9 |
Facilities Management |
Responsible for maintaining physical assets, office spaces, and other infrastructures. |
Ensures operational continuity for the bank’s day-to-day operations. |
Once the critical business functions have been identified, the next step is to assess the potential impacts of disruptions. These impacts can be classified into various categories:
The next step in the BIA is to determine the RTO and MAO for each critical business function.
The RTO specifies the maximum time allowed for recovery after a disruption, while the MAO represents the point at which the disruption becomes unacceptable to the organisation.
The RTO and MAO for each CBF will depend on the specific needs of IsDB and its stakeholders.
Based on the BIA findings, the functions with the most significant impact and the shortest RTO/MAO should be prioritised for recovery.
This prioritisation helps IsDB focus resources on functions that, if disrupted, would have the most significant impact on its mission.
CBF-1 (Financial Operations & Treasury Management) and CBF-2 (Project Financing & Investment Management) are high-priority functions because they directly support the bank's operations and development goals.
The Business Impact Analysis phase is essential to developing a robust Business Continuity Management (BCM) plan for the Islamic Development Bank (IsDB).
By identifying and assessing the potential impacts of disruptions to critical business functions, IsDB can prioritise recovery efforts and allocate resources to minimise operational, financial, and reputational losses.
The BIA process is the foundation for developing effective recovery strategies and ensuring that IsDB can continue to fulfil its mission of promoting sustainable development in its member countries, even amid disruptions.
This chapter outlines the core elements of the BIA phase. It provides practical insights and guidelines for implementing BCM planning at IsDB, thereby ensuring resilience and continuity in the organisation’s critical functions.
Building Resilience: A Guide to Business Continuity Management at IsDB
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