DANIEL L. LUNANI

First, what is business impact analysis (BIA)? It’s a way to predict the consequences of disruptions to a business and its processes and systems by collecting relevant data, which can be used to develop strategies for the business to recover in the case of an emergency. Scenarios that could potentially cause losses to the business are identified. These can include suppliers not delivering, delays in service, etc. The list of possibilities is long, but it’s key to explore them thoroughly in order to best assess risk. It is by identifying and evaluating these potential risk scenarios that a business can come up with a plan of investment for recovery and mitigation strategies, along with outright prevention. What the business impact analysis is analyzing are the operational and financial impacts of a disruption of business functions and processes. These include everything from lost sales and income, delayed sales or income, increased expenses, regulatory fines, contractual penalties, to a...

To raise capital for business needs, companies primarily have two types of financing as an option: equity financing and debt financing. Most companies use a combination of debt and equity financing , but there are some distinct advantages to both. Principal among them is that equity financing carries no repayment obligation and provides extra working capital  that can be used to grow a business. Debt financing  on the other hand does not require giving up a portion of ownership. Companies usually have a choice as to whether to seek debt or equity financing. The choice often depends upon which source of funding is most easily accessible for the company, its cash flow,  and how important maintaining control of the company is to its principal owners. The debt to equity ratio  shows how much of a company's financing is proportionately provided by debt and equity. Equity Financing Equity financing involves selling a portion of a company's equity in return for...