Damage assessment is the process of evaluating the extent and severity of the damage caused by a disruption to an organization's facilities, equipment, systems, data, records, or personnel. It includes identifying the affected business functions and processes, estimating the time it will take to restore them to normal or acceptable levels of operation, and evaluating whether the recovery time exceeds the maximum tolerable downtime (MTD) for each function or process. If so, a disaster should be declared and the business continuity plan should be activated. Having the insurance company declare the total extent of the damages is not part of the damage assessment process, as it may take longer than the MTD and may not reflect the operational impact of the damage. Verified References: https://www.fema.gov/pdf/emergency/nims/Damage_Assessment.
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