Business impact analysis is the method through which a business organization predicts the impact or effects of a particular interruption on the key activities of the business organization. In this method, scenarios that can affect the productivity of the business organization are studied. After assessing the relevant information from the methods, corrective action plans are made to deal with the uncertainty that may cause harm to the business organization in the future.

Business impact analysis works on two basic assumptions:

• Each activity/department/operation of the business is linked with each other and are dependent on each other.
• Not all parts of the business organization are equally important. Some parts require more allocations than others.

Primary elements/components of the business impact analysis are:

• Sponsorship: executive sponsorship is important for a business organization. Without the support of executives, a business organization cannot fulfill its objectives.
• Organization's understanding: it is important to understand the objectives and structure of the organization.
• Business impact analysis tools: The use of BIA tools such as charts, questionnaires, flow charts, and others are important to collect data and understand it properly.