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In the present dynamic business world, industries are well-prepared for any kinds of threats. This is because they have found ways to avoid the catastrophe. With enough knowledge on the event of a disaster and a well planned disaster recovery strategy, effects of a disaster can be minimized. Business impact analysis (BIA) is a major aspect of a disaster recovery strategy. With the ability to predict the consequences of interruption of a business function, BIA assists businesses in persistent and smooth operations. Comprehending these fundamental elements like identifying and analyzing the impact of disasters, offers enterprise the foundation for investment in disaster recovery and mitigation strategies.