[CM] [PM] [ISO] [P3] Business Impact Analysis with ISO ISO22361 Elements

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

The primary objective of BIA is to understand the potential impact of identified risks on critical business functions. It involves evaluating the effects of disruption on operations, financials, and reputation and determining the organisation's dependencies.

ISO 22361 emphasizes assessing vulnerabilities and how potential disruptions affect the organisation’s resilience. The standard views BIA as a tool for understanding critical functions, essential services, and disruptions' operational, financial, and reputational effects.

Focus: Identifying and prioritising critical business functions, understanding their dependencies, and determining recovery time objectives (RTOs) and recovery point objectives (RPOs).

Focus: Evaluating crises' impact on critical functions and services, determining dependencies, and understanding how crises impact organisational resilience.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

Critical Business Functions Identification: BIA focuses on identifying the most essential business functions, processes, and resources that, if disrupted, would significantly impact operations. This involves collaborating with various departments to assess what functions must be prioritised.

ISO 22361 requires organisations to identify critical business functions and essential services for sustaining operations. These functions are assessed for their importance to stakeholders, regulatory obligations, and the organisation's strategic objectives.

The methodology categorises functions based on their importance to operational continuity, financial health, and reputation.

The standard emphasises the continuity of operations and the organization’s ability to deliver essential services to stakeholders, meet legal obligations and maintain resilience in crises.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

Vulnerability Assessment: BIA involves analysing how each identified crisis scenario might affect critical functions and assessing the vulnerabilities within the organisation’s operations. It helps determine the potential severity of these disruptions.

ISO 22361 requires an analysis of vulnerabilities and dependencies between critical functions and how external and internal crises may disrupt these functions. The standard emphasises continuous vulnerability monitoring and ensuring the organisation knows interdependencies across its operations.

Impact Analysis: The methodology evaluates the potential operational, financial, reputational, and regulatory impacts a disruption could have on the organisation.

ISO 22361 encourages organisations to assess direct and secondary impacts, such as reputational damage, loss of stakeholder confidence, and cascading disruptions across the organization.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

Recovery Time Objectives (RTOs): The methodology focuses on defining RTOs and determining the maximum acceptable downtime for critical business functions before significant damage occurs. This helps prioritise

ISO 22361 also requires the establishment of RTOs for critical functions and services, ensuring that recovery timelines are aligned with stakeholder expectations and regulatory requirements. The standard highlights the importance of balancing organisational capabilities with the urgency of recovery.

Prioritization: After identifying critical functions and RTOs, the organisation prioritizes their recovery to minimize disruption. Functions with shorter RTOs receive priority in resource allocation and recovery strategies.

ISO 22361 stresses the need to prioritise functions based on their strategic importance and impact on resilience. The standard encourages flexibility in prioritisation, considering the changing nature of crises and organisational needs.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

The methodology involves identifying dependencies on external resources, suppliers, and internal processes critical to maintaining business functions. Understanding these dependencies helps inform risk assessments and resource allocation during a crisis.

ISO 22361 emphasises the importance of understanding both dependencies and interdependencies between critical business functions, departments, and external entities. The standard highlights the cascading effects of disruptions across departments and how interdependencies can escalate a crisis.

The methodology primarily focuses on direct dependencies between resources and business functions.

ISO 22361 analyses interdependencies, particularly how crises in one area can affect multiple functions or spread throughout the organisation. It encourages organizations to understand how these relationships might exacerbate crises.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

BIA results should be communicated to the crisis management team and key stakeholders to ensure alignment on critical functions, vulnerabilities, and recovery priorities. The methodology emphasises sharing findings to inform the overall CM Plan.

ISO 22361 mandates that BIA findings be communicated across the organization and to external stakeholders if necessary. The standard emphasises the importance of clear and transparent communication regarding vulnerabilities, dependencies, and recovery priorities as part of the organisation’s crisis response strategy.

The methodology encourages regular updates and adjustments to the BIA to ensure it remains relevant and practical.

ISO 22361 stresses establishing communication channels to ensure that all relevant parties are aware of potential vulnerabilities and prepared for recovery efforts. The standard integrates BIA findings into broader governance and decision-making processes.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis (BIA)

ISO 22361:2022 Standard

The BIA results are the foundation for developing a Crisis Management Plan (CMP), ensuring that the organization’s response aligns with the most critical business functions. The methodology views BIA as an essential step before moving into plan development.

ISO 22361 integrates BIA into the crisis management process and organizational resilience strategy. The standard emphasizes that BIA findings should inform the CMP and guide resource allocation, recovery planning, and decision-making across all organizational levels.

The methodology focuses on translating the insights from the BIA into actionable recovery strategies for key business functions.

ISO 22361 stresses the need for a comprehensive approach that uses BIA findings to inform multiple facets of resilience planning, including leadership decision-making, communication strategies, and coordination with external stakeholders.

Crisis Management Planning Methodology: Phase 3 - Business Impact Analysis

ISO 22361:2022 Standard

BIA is considered a living document in the methodology, requiring regular reviews and updates as the organisation evolves. It encourages periodic assessments to ensure the organization’s vulnerabilities and critical functions are up to date.

ISO 22361 mandates that BIA be part of a continuous improvement process. The standard emphasises regular monitoring and updating of BIA findings in response to changes in the organisation, environment, and risk landscape.

The methodology recommends periodically reassessing business functions, dependencies, and recovery priorities.

ISO 22361 formalises the process of continuous review and adaptation. It encourages organisations to remain agile and responsive to new threats and ensures that BIA findings remain relevant in a changing crisis environment.