Risk and Business Impact Analysis (BIA) Continuity of Earnings, Liquidity & Equity
How does your organization identify, process & use information that relates to its risks?
The two most effective approaches are to conduct:
1.) Risk Assessment
The process of identifying and qualifying specific operational risks, their severity and potential to disrupt the business.
2.) Business Impact Analysis (BIA)
The BIA is used to quantify the impact that could occur to the company if any business function or department is unavailable for any reason.
When combined, the risk intellegence produced is critical for identifying where your most vulnerable and time sensitive operations are so investments can be made to protect them or prioritize their recovery in a crisis.
The basics of understanding your corporate risk universe and appetite for risk start with asking:
– What can go wrong?
– How likely is it?
– What are the consequences?