Business Impact Analysis (BIA) primarily identifies what?

• A. The third party's critical processes and associated systems and prioritizes the effect of a business disruption based on impact and likelihood
• B. The company's stock price volatility
• C. The vendor's marketing strategy
• D. The number of employees in IT

Answer: (A)

Business impact analysis focuses on identifying which business processes are essential and what would happen if they were disrupted. It maps the interdependencies—people, processes, information systems, and facilities—and uses the potential impact and likelihood of disruption to set recovery priorities. In a third-party context, this means identifying the vendor’s critical processes and the systems supporting them, so you understand the most consequential areas and can plan controls and recovery efforts accordingly. This information also helps establish recovery targets like RTOs and RPOs to guide continuity planning. The other options—stock price volatility, marketing strategy, or IT headcount—aren’t what a BIA addresses, since it centers on operational impact and recovery prioritization.