A business impact analysis determines the possible consequences that would disrupt a business function. It helps the business figure out what are the things that needs to be improved in certain areas of the business. That is why it is also very important to take consideration to Time Impact Analysis because it helps assess and quantify potential impacts that may affect the business functions and processes.
And if by chance their are uncertainties detected, cash flow analysis is very important in taking the role of determining the inflows and outflows of the business. An effective cash flow analysis needs a good and credible cash flow statement that provides all the information needed to understand the movement of money in your business.
Things to Include In Writing Impact Analysis
Same as SWOT Simple analysis, it is vital to always consider the potential consequences that might happen in the flow of your business. By that, you will be able to identify the things you might consider doing to prevent a bad effect to happen in the flow of business. To make it possible, you must also know what are the things you need to include in writing your business’ impact analysis.
- Brief description of issue- This section states the main problem of the business functions and operations. This is also called the problem statement. This section must be clear and concise since the explanations will follow in the next sections of the document.
- Explanation- This area serves as the meat of your impact analysis. The failures or defects in the business shall be well stated and narrated. Specifications is a must in this area to attain clear understanding unto what really happened. You also have to show examples or cite certain circumstances that caused inefficiency to the operations.
- Action Statement- This is where you state all the things needed to be done to help fix the failure and problems. Mention all the possible remedies and how to make it happen.
- Impact- Mention the benefits that the business will be getting.
- Persons Involved- List of names of the people who should contribute and be involved in the process of fixing the problem.
- Include estimate of cost and time for fix- This very important because it serves as guideline unto how much money will be spent and the time frame on how long would it be fixed. This is to set proper expectations in the business process.
Creating analysis can be quite hard and complicated but we must also consider its importance to business, just like Risk analysis that helps in determining danger to individuals which also helps in assessing what measures are needed to consider. Needs Analysis that provides the solutions to the problem, we also have Analysis examples in excel.
Guidelines in Conducting Impact Analysis
Conducting an impact analysis can be a very crucial game in the field of business analysis. Impact analysis bears the important information necessary for the planning. Conducting such analysis is a great help for the business because it determines the risks that the business might encounter, counter react to those risks and produce recovery strategies that would help strengthen the business. Here are the few guidelines to consider in conducting impact analysis :
- Selection- Selecting the projects to be examined is the first thing to do in conducting an impact analysis. Please be enlightened that these projects mostly come from directors, non-government organizations or NGO’s, and program officers.
- Gathering Information- When you gather information for a certain project to be assessed, it means you are also taking part in evaluating if the project is worth the assessment. The inventory must be checked as well. This step helps determine if the assessment shall proceed or not.
- Creation of Plans- Call to mind that the plan you are going to create includes the causal model because it produces sets of hypothesis that needs to be tried and tested in the study. Remember to make a practical plan for the study.
- Condense and Staff- Grouping the impact is necessary because it would be easier to determine which impact needs to have arrangements with and those that needs to be carried out in the field research (see also cluster analysis.)
- Analyze and Synthesize- After carrying out the field research and testing all the hypothesis, analyzing the results follows and after which, it is necessary to summarize yet do not forget to highlight emphasize the main points of the research.
- Disseminate- The last guideline is disseminating or the spreading of information because it is really likely that it would be read by others. Dissemination can be through seminars, conferences, web postings and published papers.
Conducting such analysis is a great help for the business because it determines the risks that the business might encounter, counter react to those risks and produce recovery strategies that would help strengthen the business. We have Analysis examples in pdf an d free analysis examples might be very helpful in your reference. You can also go ahead and refer to our other types of analysis such as Risk Analysis and Factor Analysis.