Business Impact Analysis Matrix

The Business Impact Analysis Matrix is a tool used to assess the impact of potential risks on a business. It is a 2x2 matrix that divides risks into four categories based on their likelihood and impact.

At a very high level, the Business Impact Analysis Matrix is used in the context of business, risk management.

Business Impact Analysis Matrix quadrant descriptions, including examples
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What is the Business Impact Analysis Matrix?

A visual explanation is shown in the image above. The Business Impact Analysis Matrix can be described as a matrix with the following quadrants:

  1. High Impact/High Likelihood: Risks that are highly likely to occur and have a high potential impact, such as a natural disaster.
  2. High Impact/Low Likelihood: Risks that are unlikely to occur, but have a high potential impact, such as a cyber attack.
  3. Low Impact/High Likelihood: Risks that are highly likely to occur, but have a low potential impact, such as a minor equipment failure.
  4. Low Impact/Low Likelihood: Risks that are unlikely to occur and have a low potential impact, such as a customer complaint.

What is the purpose of the Business Impact Analysis Matrix?

The Business Impact Analysis Matrix is a tool used to assess the impact of potential risks on a business. It is a 2x2 matrix that divides risks into four categories based on their likelihood and impact. The four categories are:

  • High Impact/High Likelihood
  • High Impact/Low Likelihood
  • Low Impact/High Likelihood
  • Low Impact/Low Likelihood

The matrix can be used to prioritize risks and determine which ones should be addressed first. It can also be used to identify areas where additional resources may be needed to reduce the impact of a risk.

For example, a business may identify a risk that is highly likely to occur and has a high potential impact. This risk should be addressed first, as it poses the greatest threat to the business. On the other hand, a risk that is unlikely to occur and has a low potential impact can be addressed later, as it poses a much lower threat.


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What templates are related to Business Impact Analysis Matrix?

The following templates can also be categorized as business, risk management and are therefore related to Business Impact Analysis Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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