Which statement best describes a Business Impact Analysis (BIA)?

• A. A financial audit of IT expenditures
• B. Identifies critical functions, assesses disruption impacts, informs continuity strategies
• C. A method for coding software defects
• D. A procedure for hiring IT staff

Answer: (B)

A Business Impact Analysis focuses on mapping what the organization must keep running, understanding what happens if those activities are disrupted, and using that understanding to shape recovery and continuity plans. It starts by identifying critical functions, then evaluates the potential impacts of interruptions on those functions—covering operational, financial, regulatory, and reputational consequences—and finally informs the strategies and priorities for recovering and sustaining operations. In short, it ties together what matters most to the business, the consequences of disruption, and how to respond, which is why this option best describes a BIA. The other statements describe activities like auditing IT spend, coding defects, or hiring staff, which are not about analyzing business impact and continuity.