What is the main purpose of conducting a business impact analysis?

• A. To list all possible risks in the organization
• B. To ensure employee safety during disruptions
• C. To determine recovery strategies after a disruption
• D. To validate financial forecasts for the following year

Answer: (C)

The main purpose of conducting a business impact analysis (BIA) focuses on determining recovery strategies after a disruption. A BIA helps organizations identify critical business functions and the impact that a disruption would have on those functions. This analysis assesses the potential consequences of business interruption, which is crucial for developing effective recovery strategies that prioritize critical operations and minimize downtime.

A thorough BIA informs decision-making about how best to recover and resume operations after a disruptive event, ensuring that the organization can maintain resilience. It considers factors such as the maximum allowable downtime and the resources required for recovery. By laying out these strategies, organizations can be better prepared to respond swiftly and effectively to various risks, ensuring operational continuity.

While the identification of risks, employee safety, and financial forecasts are important aspects of overall risk management, they do not encapsulate the primary goal of a BIA, which is centered on recovery strategies and maintaining business function continuity during and after disruptions.