What does business impact analysis focus on?

• A. Maximizing revenue generation
• B. Identifying potential effects of disruptions to operations
• C. Evaluating employee performance
• D. Auditing financial accounts

Answer: (B)

Business impact analysis primarily focuses on identifying potential effects of disruptions to operations. It involves assessing how various types of disruptions—such as natural disasters, cyberattacks, or other incidents—could affect an organization's ability to conduct its business. The goal of this analysis is to understand the critical functions of the business and the impact that interruptions could have on these functions, helping organizations prioritize their recovery efforts effectively.

By acknowledging the potential effects of these disruptions, businesses can create informed strategies for risk management, disaster recovery planning, and business continuity. Recognizing operational vulnerabilities allows organizations to implement proactive measures that minimize the risk and significance of disruptions, thereby protecting their assets and ensuring continuity of services.

Other options do not align with the primary objective of business impact analysis. For example, maximizing revenue generation is a broader business goal, and while it is important, it is not the focus of a business impact analysis. Evaluating employee performance and auditing financial accounts relate to human resources and finance, respectively, and do not address the core concerns of operational disruptions that a business impact analysis seeks to evaluate.