Cisco Cyber Security Practice Exam

What key considerations does a Business Impact Analysis (BIA) examine?

1. Operational impact assessments

2. Recovery time objectives (RTOs)

3. Legal compliance factors

4. Cost reductions strategies

The correct answer is: Recovery time objectives (RTOs)

A Business Impact Analysis (BIA) primarily focuses on identifying the effects of disruptions on business operations and the implications for recovery. Recovery time objectives (RTOs) are a critical component of the BIA process, as they define the maximum allowable downtime for processes or systems before significant adverse impacts occur. By analyzing RTOs, organizations can prioritize which functions must be restored quickly to minimize operational disruption and financial loss. In this context, RTOs help organizations establish a framework for recovery strategies and resource allocation. The emphasis on how long it will take to recover is essential for planning business continuity, ensuring that essential operations can resume as promptly as possible following a disruption. While operational impact assessments and legal compliance factors are relevant to the overall evaluation of business risk and continuity planning, they do not capture the targeted focus on recovery time that RTOs provide. Cost reduction strategies, though financially relevant, do not directly inform how an organization should recover from a disruptive event, placing them outside the main focus of a BIA. The central intent of a BIA is to understand the implications of downtime, making recovery time objectives a key aspect of that analysis.