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Chapter 4 developed a mechanism to evaluate the impact of more than one telecommunication channel in tandem on the distribution of delays. This chapter applies the mechanism developed in Chap. 4 in assessing the cumulative impact of risks constituted by a number of channels, where the risk associated with each channel can be quantified by a known distribution. More specifically, this chapter considers flows of containerized traffic in a cascade of channels with diverse risk characteristics. Each channel is characterized by a probability distribution function relating the probability of loss being less than a specified value to the magnitude of the loss. The cumulative impact of cascading channels is then evaluated as a closed form solution in terms of the characteristics of the constituent channels with dissimilar risk characteristics. The results presented in this analysis can be used to shape the risk characteristics of individual channels through, for example, additional investment in order to maximize the impact of such investments. The contents of this chapter have partially been published in  and are reproduced with permission.
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- Cumulative Impact of Inhomogeneous Channels on Risk
Pramode K. Verma
- Springer Berlin Heidelberg
- Chapter 8