Final answer:
A Business Impact Analysis (BIA) identifies vital business functions and associated dependencies, integral to business continuity planning.
Step-by-step explanation:
The key activity that identifies vital business functions and associated dependencies is known as Business Impact Analysis (BIA). A business impact analysis is a systematic process that determines and evaluates the potential effects of an interruption to critical business operations as a result of a disaster, accident or emergency. This analysis is essential in the development of an organization's business continuity planning (BCP).
The main goals of a BIA include identifying the most important business functions and the resources they require, calculating the maximum allowable downtime for these functions, and establishing the order of recovery for business processes. Understanding these components helps in creating strategies that ensure the continuity of vital functions during and after a critical event. For example, a BIA may reveal that a manufacturing company's most critical function is its supply chain process, which depends heavily on an external vendor; knowing this, the company can create contingency plans for supply chain disruptions.