Business

Why Impact Analysis Is More Important Than You Think

Businesses require change.

Whether those changes involve assessing objectives, allocating resources, or drafting methods to reduce expenses. And when someone makes a change request, it opens up the possibilities of risks.

The change request is reviewed by the right professionals (often a change control board). Then an impact analysis is next.

Impact analysis can also be referred to as Business Impact Analysis or Change Impact Analysis.

Here is what you need to know about impact analysis.

1. Not everyone can conduct impact analysis… correctly.

Impact analysis requires an extensive amount of time to complete.

To utilize effectiveness, only those with knowledge concerning the change should conduct the study. It’s the best way to ensure details aren’t forgotten or inputted inaccurately.

For example, if a change request refers to a particular project, the project manager should be in charge of the analysis. They are someone with full understanding and will, therefore, have an easier time gathering required information. Especially compared to a team member who was just onboarded.

2. It’s a tool to reduce risk

Changes bring risk. The amount of risk, or the impact of the risk, can make or break a project. Of course, if there are methods to reduce the chances of risks, a business should optimize tools to do so.

Impact analysis is one step in a process that will control fluctuations and changes. It can’t magically remove a threat or reduce the impact to zero. But it highlights potential issues to prepare in case the risk occurs.

3. What’s required for impact analysis?

The investigation takes a while to complete.

It’s broken down into three main categories of research.

1. Impact of change

It starts with examining the change. The analyst must address this and its implications to the project or company. And how it may affect potential requests in the future.

2. Impact of risks

Next, the analyst must investigate the potential hazards involved, the consequences of these risks, and the amount of time and funds it’ll require to make the change request happen.

This level of information is why it’s important someone who oversees the project is also the same person who can conduct the impact analysis. Missing any piece of information may significantly affect the results of the analysis. If data is missing, the risk may end up greater than expected, thus harming the project and company immensely.

Impact analysis works to prevent surprises from popping up; surprises of risk aren’t welcome in businesses.

But the analysis isn’t done yet!

3. Assess tasks for changes

It’s then time to determine tasks required to implement the change. This could require new employees to be onboarded, adjustments in physical designs, the integration of new technology, and more. Thorough documentation will be necessary to complete this section of the analysis.

And once that’s finished, the analyst combines each section together for the conclusion. This finding will be passed along to those in charge of the change request. With the report in hand, the team will make decisions based on this information.

The truth about impact analysis is…

It requires hard work to complete, but by being so thorough, it helps to address risk concerns for any change request accurately.

The result will provide those in charge the necessary information to make informed decisions that will benefit the project and company as a whole.

Image: garagestock/Shutterstock.com

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The Author

Kiesha Frue

Kiesha Frue

Kiesha Frue is a freelance writer and editor with a love for health, wellness, and entrepreneurship. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels.