Case Studies with Questions and Answers
Chapter 15: Business Impact Analysis
You are in the middle of conducting a Business Impact Analysis when the president of the company gives a speech to a major consumer group and tells the audience and the media that the company's goal is to ship all orders within 24 hours of the placement of the order without fail. The president later issues an internal memo to the warehouse and shipping departments confirming this goal. Your extensive analysis shows that the warehouse, shipping, distribution, and order entry functions can sustain a period of up to two weeks without significant financial loss or a loss of customers. Every other function identified in your analysis shows similar results or that functions will not show a financial or subjective impact for more than two weeks. All of your work has been reviewed by the Chief Financial Officer (CFO) who agrees that your data is accurate. To be on the safe side, functional managers agree that their recovery time objectives are within a one to two week period which will allow for the selection of less costly recovery strategies.