Business Impact Analysis: Determining the Value of an Information System | Exam Prep

The Value of an Information System in Business Impact Analysis

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In a business impact analysis, the value of an information system should be based on the overall cost:

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A. B. C. D.

C.

The value of an information system should be based on the cost incurred if the system were to become unavailable.

The cost to design or recreate the system is not as relevant since a business impact analysis measures the impact that would occur if an information system were to become unavailable.

Similarly, the cost of emergency operations is not as relevant.

A Business Impact Analysis (BIA) is a process that assesses and evaluates the potential impact of disruptive events on business operations, systems, and processes. The BIA helps organizations identify their critical systems and determine the potential impact of a disruption to these systems on the organization's ability to conduct business.

The value of an information system in a BIA should be based on the overall cost if unavailable. This means that the cost associated with the system being unavailable should be considered when determining the value of the system. This includes the potential impact on revenue, reputation, customer satisfaction, and legal and regulatory compliance.

Option A, the cost of recovery, refers to the expenses associated with restoring the system to its previous state after a disruption. While this cost is important to consider in the BIA, it does not necessarily reflect the value of the system.

Option B, the cost to recreate, refers to the expenses associated with rebuilding the system from scratch. While this cost is also important to consider, it may not be relevant in all situations, such as when the system contains proprietary or confidential information that cannot be easily recreated.

Option D, the cost of emergency operations, refers to the expenses associated with maintaining operations during a disruption. This cost is important to consider in the BIA but may not reflect the overall value of the system.

Therefore, option C, the cost if unavailable, is the best answer as it reflects the potential impact of the system being unavailable on the organization's ability to conduct business.