What is the process called where we evaluate what an asset would cost if lost, including replacement or repair?

The process of evaluating what an asset would cost if lost, including considerations for replacement or repair, is known as Business Impact Analysis (BIA). BIA focuses on understanding the criticality of each asset and the potential financial impact it may have on the organization if that asset is compromised or lost. By assessing the cost implications of asset loss, organizations can prioritize which assets are vital to their operations and develop strategies to mitigate risks related to those assets.

BIA plays a crucial role in overall risk management as it not only identifies potential losses but also quantifies the impacts on business operations, enabling informed decisions regarding resource allocation and risk mitigation strategies. This analysis helps organizations maintain continuity and resilience by prioritizing the protection of their most valuable assets.