Overview: Impact Tolerances in the context of a Business Impact Analysis (BIA) refer to the maximum acceptable level of disruption or downtime for critical business functions before significant impacts occur. Identifying Impact Tolerances is crucial because it helps determine which functions require immediate attention in a Business Continuity (BC) strategy. By understanding these tolerances, organizations can prioritize resources and efforts to ensure the most critical processes are restored quickly in the event of a disruption.
Contributions:
Please share your methodology or sample questions you use when assessing the impact tolerances of critical processes. You can include text and/or attach relevant screenshots for clarity.
Key Areas to Address:
- Methodology: Describe your approach to measuring the impact of function stoppage.
- Sample Questions: Share examples of the questions you ask to assess impact.
- Best Practices: Highlight any tips or best practices that have worked well for you.
Example Contribution: Methodology: We assess each function by measuring the impact if it were to stop for up to 30 days, focusing on the following criteria.
Sample Questions:
- How would a stoppage in your function affect Brand/Guest Experience
- What revenue losses would result from a stoppage in your function?
- How would expenses be affected if your function stops?
- Are there any compliance or legal obligations tied to your function?
- How reliant are other departments on the outputs of your function?
- How dependent is your function on third-party providers?
Best Practices:
- Utilize the Criteria Guide to score the impact of a function stopping.
- Refer to the Assumptions List to aid in decision-making.
- Break down impacts into three categories: Brand/Guest Experience, Revenue, Expense, and Compliance/Legal.
- Consider additional factors like reliance on function outputs and supply chain dependencies.
- Define Maximum Allowable Downtime (M.A.D) to understand the urgency of impacts, categorized into time frames (e.g., 24 hours or less, 1-3 days, etc.).
Reminder:
- Confidentiality: Do not include any confidential or sensitive information from your organization.
- Tags: Tag your response appropriately so others can easily search and find your contribution.
Your contributions will help in building a comprehensive understanding of the impact tolerances of critical processes, which is essential for developing an effective Business Continuity Strategy.
