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0BUSINESS IMPACT ANALYSIS - AN ORGANIZATION RISK
IDENTIFICATION GUIDE
Kilicheva Farida Beshimovna
Ph.D., Associate Professor of the Department of Economics
Renaissance Educational University Nigmatulin Danil Denisovich 1st year student of the Faculty of Banking and Auditing
Renaissance Educational University
Abstract. The article discusses the issues of organization and impact-analysis of the impact on business, risks and their mitigation.
Keywords: risk, analysis, mitigation, impact-analysis.
Uzbekistan's high dependence on exports of commodities such as gold, copper and gas, as well as on remittances from Russia, which is also susceptible to commodity price shocks, may make it vulnerable to adverse changes in global market conditions, as was observed last year. Many of today's businesses are more technologically advanced, automated, and data-driven, but they are still not immune to the age-old problem of failure. This is where business impact analysis comes in handy. BIA is a tool that helps organizations of all sizes ensure business continuity during a crisis, providing a framework for identifying and assessing the impact of disruptions.
Explanation of the business impact analysis.
Business impact analysis is the systematic process of predicting how disruptive events affect an organization and its business operations. The BIA must also determine the operational and financial consequences caused by failures. These may include:
* Loss of sales / revenue
* Customer dissatisfaction
* Loss of customers
* Additional expenses (for example, equipment repairs, overtime of employees)
* Failure to comply with the rules, resulting in fines
* Production slowdown.
As a component of business continuity planning, BIA aims to collect as much data as possible on potentially disruptive events and vulnerable systems within the company to develop a range of recovery strategies.
Common problems, that can be solved using business impact analysis.
According to the report, BCI Horizon Scan Report 2020 [BCI Horizon Scan Report 2020], prepared by the Business Continuity Institute (BCI), the top five causes of company disruptions over the past 12 months include:
* Health incidents
* IT and telecommunications shutdown
* Security incidents
* Lack of talent and people with critical skills
* Cyber attacks and data leaks.
However, contrary to popular belief, the BIA does not plan for all possible failures. The essence of the analysis is not so much to work with a specific situation, but to identify the most important processes of the organization and develop a plan to ensure their continuity regardless of the crisis. When conducting a BIA, the business must adapt its analysis to the specific circumstances of the organization.
4 main types of business impact analysis.
Due to the complexity and breadth of information that is used in conducting a BIA, it is recommended to plan at different levels of the business. While there are different perspectives on the types of impact analysis that organizations can use, they often come down to the following four types of BIA:
* Initial Analysis - This high-level analysis helps lay the groundwork for deeper and more comprehensive analysis in the future.
* Product Analysis - This type of BIA aims to identify the company's products and services and their vulnerability to failures.
* Process Analysis - This BIA focuses on the processes, workflows, and systems that support the creation and delivery of products and services.
* Performance Analysis - This BIA performs a detailed assessment of the actions required to deliver products and services to customers.
4 steps to conducting a business impact analysis.
Although there are no specific standards for conducting BIA, most methodologies consist of four main components: data collection, data analysis, documentation of results, and presentation of results. Here's a more detailed look at this multi-step process.
1. Data collection.
Many BIA teams make the mistake of trying to do too many things at once during the data collection phase of their analysis. A good strategy is to focus on four operational factors that are present in almost any business process:
• Conveniences
• People
• Tools and equipment
• Materials and suppliers
From here, you just need to create a list of the 10-20 most important business processes in your organization and gather information about how a potential failure will affect these four factors. Generally speaking, there are two ways to do this
High-quality data is collected through face-to-face interviews, focus group discussions, and surveys.
Quantitative data collection-Indicators such as the maximum allowable shutdown (MTO) and Target recovery time (RTO) reflect the amount of time that processes and systems can remain idle before an undesirable effect occurs.
This approach allows the company's management to understand how the business works from scratch, which makes it easier to understand how disruptive events affect individual parts of the process.
2. Data analysis.
Data collected during the first stage of the BIAis usually analyzed using project management and business continuity tools. The BIA team will then aim to do the following:
Determineь the interdependence of processes and workflows
Defines the necessary requirements for optimal performanceь требования для оптимальной производительности
ОпределитьQuantify количественна оценку impact of disruptions - in addition to estimating the financial cost of an adverse event, the BIA team must also take into account hidden effects such as reputational damage, moral damage, data loss, and loss of productivity.
Recovery Plan - The BIA team will determine the time, resources, and personnel required to recover from a failure.
Process Vulnerability Detection-This includes identifying vulnerabilities in processes, workflows, and systems and finding ways to protect them from disruptive events.
3. Documentation of analysis results.
Теперь результаты The BIA results will now be combined into a BIA report.
The content of the BIA report will vary from company to company, but at least it should contain the following components:
* Managing Resume
* Scope and goals
* Overview of the methodologies used
* Discussion of the results
* Summary and recommendations
4. Presentation of results.
Finally, the BIA report is submitted to the company's management for review.
During the presentation, the BIA team should highlight vulnerabilities and recovery plans for the most important business functions of the organization. The goal is to ensure business continuity.
Reasons for conducting regular business impact analysis.
Proactive planning - conducting a BIA helps businesses take a more proactive approach to crisis management. Planning for failures is often safer and more efficient than responding to them as they occur.
Many things can happen to your organization over time, so you need to update your BIA regularly. A good rule of thumb is to conduct another impact assessment and analysis in two years. However, small businesses that undergo fewer changes may leave at longer intervals. Conversely, organizations that are prone to disruptions, such as banks, may need more frequent analysis.
The relationship between business impact analysis and forecasting.
Both try to predict specific outcomes in the future.
Using BIA has also allowed organizations to go beyond simply forecasting budgets, sales, and inventory based on past performance and future conditions. While
BIA doesn't prevent events, BIA can be a powerful risk management tool, helping businesses control the impact of disruptions.
References:
1. Decree of the President of the Republic of Uzbekistan No. UP-60 dated
28.01.2022 "On the strategy of development of the new YUzbekistan for 2022-20262026 годы".
2. Decree of the President of the Republic of Uzbekistan No. UP-158 datedода
11.09.2023 "On the strategy "YUzbekistan-2030"".
