What is the primary purpose of a business impact analysis?

The primary purpose of a business impact analysis (BIA) is to understand and quantify the impact of disruptions on critical business operations and processes. This understanding enables organizations to prioritize restoration efforts effectively after an incident has occurred. The BIA identifies which functions and processes are vital for the organization's survival and which can be temporarily suspended. By prioritizing restoration, the organization can focus on getting its most critical operations back up and running as quickly as possible, reducing downtime and minimizing financial loss.

Other options, while related to risk management, focus on different aspects. Total cost of ownership pertains to understanding the total cost associated with purchasing, operating, and maintaining a product or service, which is not the primary focus of a BIA. Annual loss expectancy involves calculating potential financial losses associated with risks over a year, providing a different perspective on risk assessments rather than impact analysis. Assessing residual risk deals with understanding what risks remain after security measures have been implemented and does not directly relate to the purpose of determining restoration priorities following an impact analysis.