ITIL 4 Foundation Practice Exam

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What is the purpose of a business impact analysis (BIA)?

To identify potential market opportunities
To determine marketing strategies
To identify vital business functions and their dependencies
To analyze customer demographics

The correct answer is: To identify vital business functions and their dependencies

The purpose of a business impact analysis (BIA) is to identify vital business functions and their dependencies. A BIA helps organizations understand which functions are critical to their operations and how the disruption of these functions can impact the organization. It evaluates the effects of downtime on different business areas and assesses the interdependencies between various systems, processes, and resources. By identifying critical functions, a BIA provides the necessary insights to prioritize recovery strategies and allocate the right resources for business continuity planning. This ensures that when disruptions occur, efforts can be focused on the most essential areas to minimize impact and restore operations effectively. The other choices focus on aspects outside the scope of a BIA. Identifying market opportunities and determining marketing strategies emphasize external business development and customer engagement rather than internal operational resilience. Analyzing customer demographics is also concentrated on external factors that influence market strategies and customer relations, rather than the internal function continuity critical in a BIA context.