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Which choice below most accurately describes a business impact analysis (BIA)?
Correct Answer: B
A business impact analysis (BIA) measures the effect of resource loss and escalating losses over time in order to provide the entity with reliable data upon which to base decisions on hazard mitigation and continuity planning. A BIA is performed as one step during the creation of a Business Continuity Plan (BCP). A common five-step approach to a BCP could consist of: BCP project scope creation Business impact assessment Recovery strategy development Recovery plan development Implementation, testing, and maintenance. Answer a is a definition of a disaster/emergency management program. Answer c describes a mutual aid agreement. Answer d is the definition of a recovery program. Source: NFPA 1600 Standard on Disaster/Emergency Management and Business Continuity, National Fire Protection Association, 2000 edition and Handbook of Information Security Management, by Micki Krause and Harold F. Tipton, Auerback, 1999 edition.