What does business impact analysis aim to identify?

Business impact analysis (BIA) primarily aims to identify the effects of failing to perform critical functions within an organization. This process entails assessing the potential damage that disruptions to essential business functions can cause, including financial loss, operational setbacks, and impacts on reputation and regulatory compliance.

By understanding these potential impacts, organizations can prioritize which functions are most critical to their operations and develop strategies to mitigate risks associated with disruptions. BIA serves as a foundational step in business continuity planning, helping organizations focus their resources effectively to ensure that critical operations can be resumed or maintained in the event of a crisis.

The other options, while relevant to overall business strategy and resilience planning, do not specifically capture the primary goal of a BIA. Profitability assessments are more related to financial analysis rather than the impact of disruptions, recovery strategies involve planning once impacts are understood, and budget requirements pertain to financial planning rather than directly assessing the impact of failing to perform critical functions.