Business Impact Analysis

The business impact analysis is a tool used in the process of risk management. It helps to objectively assess scenarios that could have an adverse effect on a company’s financial performance and provides useful insights into what is necessary for recovery. The business impact analysis allows companies to mitigate or compensate for their risks, keeping them from running out of cash due to unexpected events such as natural disasters, economic downturns, or cyber-attacks before they occur because it creates contingency plans ahead of time so that when these catastrophic incidents happen; businesses are able-to react swiftly with resources available through funding sources like insurance policies.