A certified business continuity professional from Franklin Lakes, New Jersey, Taylor Hallman has served as a business continuation associate at Prudential Financial since 2012. One of Taylor Hallman’s responsibilities includes performing business impact analysis (BIA).
A business process, BIA involves identifying business functions and predicting the consequences if one of those functions is disrupted. BIA allows for the collection of the needed information to develop recovery strategies that would minimize potential losses. Some of the most common causes of disruption include failure or delay of suppliers in delivering supplies, delay in delivery of purchased services, utility failures, labor disputes, cyber-attacks, and natural or man-made disasters.
Analyses surrounding BIA includes operational and financial impacts of disruptions in business functions and processes. These impacts include delayed sales or income, lost sales or income, increased expenses, contractual penalties including loss of contractual bonus, regulatory fines, customer dissatisfaction, and delay of new business plans.
BIA is important to businesses because it leads to thorough planning to minimize risks. It also allows businesses to execute due diligence. While risks are inherent to businesses, BIA helps the business to survive in the eventual occurrence of unforeseen disruptions.
