What does "impact analysis" involve?

Impact analysis involves evaluating how an incident affects business operations and users. This process is critical in incident management, as it helps organizations understand the repercussions of an incident not only on their services but also on the overall business environment and stakeholders. By conducting an impact analysis, teams can determine the severity of an incident, prioritize their response efforts, and make informed decisions regarding resource allocation and communication strategies. This focus on the broader effects on operations and users ensures that the response is aligned with the organization’s goals and minimizes disruption to business activities.

While other options may have their own importance—such as assessing financial outcomes or evaluating performance metrics—they do not directly capture the essence of impact analysis as it pertains to understanding the comprehensive effects of an incident on business operations and user experience.