The business impact analysis for business continuity and disaster recovery (BC/DR) planning is one of the most critical aspects of the plan. Understanding the impact various threats and disruptions may have on the business and developing methods to systematically reduce risk and mitigate impact are the outcome from the business impact analysis phase. Reviewing threat sources, likelihood of occurrence, and potential impact create the foundation of an effective BC/DR plan. Understanding which risks to address and which to accept, developing an impact report, and gaining acceptance from key business leaders are critical to managing risk and addressing DR requirements.