Calculating the Impact of Losing Frame Relay Network Connectivity

D.

The bottom line on calculating the impact of a loss is what its cost will be to the organization.

The other choices are all factors that contribute to the overall monetary impact.

The impact of losing frame relay network connectivity for 18-24 hours can be calculated using various approaches.

Option A: Hourly billing rate charged by the carrier: If the organization has a service-level agreement (SLA) with the carrier that specifies a penalty for network downtime, the hourly billing rate charged by the carrier can be used as a baseline for calculating the impact. This approach assumes that the SLA covers the entire downtime period and that the carrier is responsible for the outage. However, this approach does not account for the actual losses incurred by the organization.

Option B: Value of the data transmitted over the network: If the organization can estimate the value of the data transmitted over the network during the downtime period, this can be used to calculate the impact. For example, if the organization is a stock brokerage firm and relies heavily on real-time data feeds, the value of lost transactions during the downtime period can be estimated. This approach requires a reliable estimate of the value of the data, which may be difficult to obtain.

Option C: Aggregate compensation of all affected business users: If the organization can estimate the compensation paid to all affected business users during the downtime period, this can be used to calculate the impact. For example, if the organization has 100 employees who cannot work during the downtime period, and their average hourly rate is $50, the impact can be estimated as $90,000 to $120,000 (assuming 18-24 hours of downtime). This approach requires a reliable estimate of the compensation paid to affected users.

Option D: Financial losses incurred by affected business units: If the organization can estimate the financial losses incurred by affected business units during the downtime period, this can be used to calculate the impact. For example, if the organization's sales department cannot access customer data during the downtime period, and this results in lost sales of $500,000, the impact can be estimated as $500,000. This approach requires a reliable estimate of the financial losses incurred by affected business units.

In summary, the best approach for calculating the impact of losing frame relay network connectivity for 18-24 hours depends on the organization's specific circumstances and the availability of reliable data.