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What is the BEST method for prioritizing system restoration in an outsourced business model?

  1. Cost-benefit analysis

  2. Service Level Agreement (SLA) evaluation

  3. Business impact analysis

  4. Risk assessment

The correct answer is: Business impact analysis

Prioritizing system restoration in an outsourced business model involves understanding the potential impacts of system outages on business operations. A business impact analysis (BIA) serves this purpose effectively as it identifies critical business functions, the resources that support them, and the potential consequences of disruptions to those functions. By conducting a BIA, organizations can assess the severity of risks and prioritize restoration activities based on how significantly each system contributes to their overall operations. This enables decision-makers to allocate resources to restore the most critical systems first, thereby minimizing potential operational and financial impacts. In contrast, while cost-benefit analysis provides insights into the financial implications of recovery options, it does not necessarily focus on the impact of specific systems on business operations. Evaluating service level agreements (SLAs) is important for measuring compliance and expected service performance but may not address the prioritization of restoration in terms of business impact. Risk assessments, meanwhile, help in identifying vulnerabilities and the likelihood of incidents but do not give a clear picture of how those incidents would impact business functions. Thus, the business impact analysis stands out as the best method for ensuring that system restoration efforts align with the organization's most critical needs and priorities.