Question

QUESTION 1 125 MARKSI As a Busincss Continuity Manager in a financial institution, you are required to review the current Risk Assessment, Business Impact Analysis (BIA) and Business Continuity Strategies for the whole banking operation. a) Analyze the possible risks for this organization based on FIVE (5) Layers of Risk. (10 Marks) b) Discuss SIX (6) benefits of reviewing BIA for this organization (12 Marks) c) Differentiate between Risk Assessment and BIA in Business Continuity context. (3 Marks)

Answer 1

(a) 5 layers of risk

• External risk : risk due to external factors. Outside our control. Such risk impact business both directly and indirectly Eg: natural disasters
• Infrastructure : infrastructure of the financial institution such as imoact of power outage, telephone access, medical access, etc
• Data system : how well is the data protected both in electronic and physical form. Delay in data retrieval and lossage of data should be mitigated.
• Department : each department has a critical function to deliver. Key personnel have to be identified in each department and their impact on the decision of the organization to be analysed
• Individual risk : how well one understands their work scope and the impact of ones work in organisational functioning is important. There should not be any conflict of interest between organization and an individual.

(B) 1. Identifies the impact of losing several resources across an organization

• Measures the effects of resources loss
• Provide management with reliable data to facilitate the development of business continuity plan
• Identity weakness across departments of the organization
• Assist in development of disaster recovery strategy
• Help develop alternative methods for business operations

(C) BIA takes place before risk assessment. BIA focuses on effects or consequences of interruption to critical business function. It also help to quantify the financial and non financial costs associated with disaster. A risk assessment identifies potential hazard and evaluates areas of vulnerability should the disaster occurs. BIA looks at parts of organization that are more crucial. In risk assessment points of weakness that make an asset more prone to harm are reviewed. BIA can serve as a strtstar point of disaster recovery. During risk assessment phase BIA findings may be examined against various hazard scenarios and potential disruptions