Difference between revisions of "Part 2: Impact Area Of Business Functions v2.0"
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Revision as of 14:59, 31 December 2021
Contents
Part 3: Impact Area Of Business Functions
Business Function and Function Code (Col 2 & 3)
- Cross-reference to the Business Function/function code or number from original Function No assigned in Part 1
Impact Area (Col 4)
This is the Impact on the organization due to the unavailability of the business function. Impacts are categorized into the following areas. The most relevant impact area(s) will be selected in this exercise:
- Financial
- Non-financial
- Processes (Business Operations)
- Legal and Regulatory
- Reputation and Image
- Social Responsibility
- People
- Assets / ICT Systems / Information
When the business function is not available, will it result in a Hard (H)/ Soft (S) impact on the organisation?
- Hard Impact: Direct Financial Impact.
- Soft Impact: Indirect Financial Impact and Non-Financial Impact.
Financial Impact (Col 5 & 6)
Monetary Loss (Estimated) (Col 5)
Provide monetary value for financial impact ONLY IF it is a financial impact. This is in the local currency and covers the same time period as the organization’s planning time horizon for Key Planning Scenario (KPS). If the planning time horizon for KPS is seven (7) days, the monetary loss should also cover 7 days.
- Total ($) Impact:
- Calculate the total financial impact on your business unit if you did not carry out this business function for X calendar days.
- How Impact is Quantified:
- Describe how this financial figure is made up, focusing on the most significant items.
- There could be contractual penalties, interest claims, missed business opportunities and loss of commission, expressed as a formula.
- Quantification
- The amount from the direct financial impact in a local currency, for a period of X days.
- Please state the time period if it is less than X days as some business functions will cease to operate within one or two days after the disaster because there are no new transactions.
- How is the hard impact quantified?
- Provide the workings or basis for computing the amount of loss.
- For example, $20,000 received per day multiplied by 2% interest payment for an overdraft, multiply by X days of the outage.
Calculation of Monetary Loss (State Formula for Calculations) (Col 6)
Impact on MBCO (Col 7 & 8)
Affected MBCO (Col 7)
- State the MBCO affected by the non-performance of the specific business function.
Impact (Col 8)
- Describe the impact of not achieving business objective
Remark (Col 9)
This is to further explain how the unavailability of the business function will cause non-financial impact to the organization.
Examples are:
- Damage to business reputation and image
- Loss of business license
- Loss of customer trust
- Fails to fulfil legal and regulatory requirements
- Fails to deliver products and services on time
- Adverse impact on outsourcing partners
- Causing casualty on personnel (e.g. employees, part-time staff and agency staff)
Instruction to BL-B-3/5 M2 Participant
Refer to the text of each of the sections within this page which are highlighted in italics for further explanation when attempting the Module 2 assignment.
When completing the impact area of the BIA Questionnaires, this template focus on the financial impact. It is useful to understand that not all employees in an organisation know precisely what your specific function is? Hence, the need for this simple explanatory note.
