What does a business impact analysis (BIA) typically identify?

A business impact analysis (BIA) primarily focuses on assessing and identifying the potential impacts of disruptive events on the organization, particularly in terms of critical business functions and processes. The correct answer is rooted in the understanding that a BIA evaluates how various threats and disruptions can affect operations, enabling businesses to prioritize their resources effectively.

The BIA typically involves estimating the likelihood of identified threats occurring, as well as understanding the consequences these threats could have on the organization. By quantifying the probability and impact of these threats, organizations can make informed decisions about where to allocate resources and how to prepare for potential disruptions. This analysis plays a crucial role in developing a robust business continuity plan.

While costs associated with incidents are important, and understanding best practices for risk management and existing security measures can be essential for a holistic view of organizational risk, they do not encapsulate the primary objective of a BIA, which is centered on the estimated probability of various threats impacting critical functions.