Prepare Reflect on your past assignement. The components of a business continuity, disaster recovery planning, and business impact analysis (BIA). In this assignment, you will focus on managing crise

Running Head: BUSINESS IMPACT ANALYSIS 0

Business Impact Analysis

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Make a business case of overall risks within the company (based on the risk you identified last week)

Currently, business risks have rocketed at a higher rate compared to some years back. In the past three decades, businesses were running smoothly, and they were not faced with many risks as modern businesses. A big business organization has a department that deals with risks (risk management department). Such a department will help the business organization minimize risks facing it and try to predict the organization's risk. Risk managing will also help the business to compete with other business organizations in the market. Small business organizations do not have a risk management department; hence they cannot withstand risks that might face it. Business risks are the exposure of the company, or the organization has to factor that will lower its profit hence falling. Business risks always threaten the business and act as an obstacle; thus, the company or organization fails to achieve its goals (Aleksandrova et al, 2018).

Coca-cola Company was founded in 1892 in Atlanta, Georgia, United States. Since then, the company has been in the market and is one of the most recognized non-alcoholic companies globally. Every business organization is faced with some risks. Despite being in the market for a long period, the organization has been faced with risks such as financial risks, financial and fraud risks, competition risk, economic risks, and information risks. First, the company is faced with financial risk, whereby it is the possibility of losing money on an investment or in a business organization. This type of risk can lead the business to collapse hence leading to a huge loss. Applying a security framework in the finance department will enable the organization to minimize such risks.

Competition is the other type of risk that Coca-cola Business Company is facing. These are the type of risks associated with the fact that there are often competitive companies on the market, and every company is seeking to obtain the highest number of customers within the region. Currently, many non-alcoholic companies have been established worldwide, such as; Brain Scientific Inc, Ceylon Cold Stores, Carabao Group Public, and AVI Limited. Thirdly, information risk is the other type of risk that Coca-cola Company is facing. Information and data of the organization have to be protected at all times. Information and data are the foundation of an organization. Coca-cola has a unique way of processing its beverages, which have led to the difference with other companies. Suppose the competing company can get such information. In that case, the coca-cola company will be at risk of losing customers because the other companies will be making the same brand as coca-cola. Natural and human-made disasters can also be considered as a risk in the business organization. Disasters such as floods and fire can lead to a huge loss to the company. Insurance is the only solution to such risk whereby the insurance company will compensate for the company's loss.

Write a brief summary of how business impact analysis (BIA) can help the organization.

Business Impact Analysis (BIA) is the procedure of deciding the resources required to enhance operational resilience and ensuring continuity of the operations during process. Business Impact Analysis is a multi-phase process, and it includes the following steps; gathering information, evaluating the collected information. At this phase, the information is evaluated, determining the risk that is likely to face the company. The third phase is preparing a report on the findings after the evaluation of the collected information. Lastly is presenting the report to the senior management suggesting the best way to manage the risks (Rostami et al, 2017).

Business Impact Analysis (BIA) plays a critical role in the business organization. First, it identifies the potential threats that they are likely to face the company. Such information will help the organization prepare itself and look for the best way to prevent risk from occurring in the organization. For instance, Business Impact Analysis can help to determine whether there will be price fluctuation. External threats such as price fluctuation in the market can affect either positively or negatively. When the price has fluctuated negatively, the company will face risk and go at a loss. BIA also helps determine internal threats and risks such as failing hardware, hacking and cracking and suggesting the best ways to deal with such threats.

Secondly, Business Impact Analysis determines contractual, legal, and regulatory obligations. In modern days, many companies lack an understanding of their obligations and the effect of not meeting those obligations. However, through the process of Business Impact Analysis, the organization will understand the obligations that will pave the way for the right level of business continuity planning to achieve compliance. Thirdly, during the Business Impact Analysis, the organization can collect internal and external data, which will help the organization make a firm decision. For instance, in our case, coca-cola uses external data to determine the preferable drinks; hence the company will produce more of that drink (Kopia et al, 2017).

Fourthly, Business Impact Analysis will help to quantify how much those risks will cost the company. Some risks can cause a huge loss to the company, and other risks have fewer impacts on the company. Risks that can cause a huge loss to the company has to be prevented with an immediate effect. For instance, financial risk is one of the risks that can lead to a huge loss. Lastly, Business Impact Analysis allows the organization to prioritize your recovery plans. It provides paths and guidance for developing and ensuring the Business Continuity Plan (BCP), which is the process of preventing potential threats and risks to the company.

Explain how will “Security Framework” you selected last week will help to minimize risk.

Coca-cola Company applies the COBIT, which is the Control Objective for Information and Related Technology. It is a security framework created by the Information System Audit and Control Association (ISACA) for information and technology management. This security framework was developed as a supportive mechanism for a manager and minimizing business risks and technical issues within the organization. COBIT can be absorbed in private sectors and government sectors to increase the information technology process's sensibility. COBIT will help Coca-cola is to develop, implement, monitor, and improve information technology governance and information management. A business organization is prone to threats and attacks; hence, the organization has to develop mechanisms or techniques that will help it overcome such threats. COBIT will help the company in recognizing and also eliminating organization threats (Huygh et al, 2018).

Secondly, COBIT ensures that the company maintains a high quality of information that will support business decisions. A business organization relies on the information to make a decision, for instance, the law of supply and the law of demand. When the price is very high, then the supply rate must be high, and when the demand is very high, the supply must be high. The above laws will help the company to minimize risk and losses.

Thirdly, COBIT provides maximum guidance on identifying, analyzing, and responding to risks hence achieving the strategic goals and innovation by the use of information technology. The guidance will help the company achieve its goals and maintain a balance between realizing benefits and improving risk management levels. Some information in the organization must remain confidential, and they should be encrypted to avoid the risk of disclosing such information. Lastly, COBIT helps in strategic information technology planning and manages the information technology investment. Companies have to invest in information technology to enhance security and prevent external and internal threats (Huygh et al, 2018).

Develop the contingency planning policy statement.

A contingency plan is an alternative plan that is developed by risk managers that will be used in the process of risk management. The main purpose of contingency planning is to minimize risks in the business organization or prevent risks in the organization. Developing contingency planning involves some steps; first, identifying the key risks. In this stage, the risk manager will identify the common risks that are likely to be experienced in the business organization. For instance, financial risks and competition risks are some of the risks an organization experiences. The second step is prioritizing the risk base on their interest; some risks might cause huge impacts in the organization, and others might have fewer impacts. A risk manager must handle the risk on the basis of the amount of effect on the organization. The third step is to create a contingency plan that will entail the plans and methods of minimizing risks. For instance, financial risk can be prevented by insuring your company. The last step is to share and maintain the plan for future use.

Reference

Aleksandrova, S. V., Aleksandrov, M. N., & Vasiliev, V. A. (2018, September). Business Continuity Management System. In 2018 IEEE International Conference" Quality Management, Transport and Information Security, Information Technologies"(IT&QM&IS) (pp. 14-17). IEEE.

Huygh, T., De Haes, S., Joshi, A., & Van Grembergen, W. (2018, January). Answering key global IT management concerns through IT governance and management processes: A COBIT 5 View. In Proceedings of the 51st Hawaii International Conference on System Sciences.

Kopia, J., Just, V., Geldmacher, W., & BUßIAN, A. (2017). Organization performance and enterprise risk management. Ecoforum Journal, 6(1).

Rostami, K., Heinrich, R., Busch, A., & Reussner, R. (2017, April). Architecture-based change impact analysis in information systems and business processes. In 2017 IEEE International Conference on Software Architecture (ICSA) (pp. 179-188). IEEE.