You have full access to this open access article. The paper discusses business impact analysis in the context of resilient communication networks. It is based on the total aggregated penalty that may be paid by an operator when the services identified with transport demands provided are interrupted due to network failures.
Second, a method for calculating the upper bound of the total penalty is presented. The assessment is performed for unprotected and protected services with a broad variety of compensation policies used to translate technical loss to monetarily expressed penalty. The proposed bounds are experimentally shown to be effective in comparison with alternative calculation methods, and also in the case when some of the assumptions taken during the modelling stage are not met.
Random failures, such as link cuts or hardware faults, are destructive to networks, both from a technical and business viewpoint. In order to deal with failures from the risk management viewpoint, it is necessary to address the parameters such as: probability of adverse events, and the loss impact incurred by them.
The latter is here related to penalties paid to clients affected by failures. If risk is dealt with using the methodological approach, it is exercised within the cyclic risk management framework [ 3 ]. The simplified structure of this kind consists of the following steps: 1 risk assessment, 2 planning the risk response, 3 response deployment, and 4 risk monitoring.
Risk assessment consists of: a risk analysis, identifying failure scenarios, and b risk evaluation determining their probability and impact on business goals. Here we use probabilistic risk assessment, during which both parameters are expressed mathematically [ 4 ].
