One could say resolve every incident ASAP but because many factors will be out or you control its far easier said than done.
When to escalate ?? great question ..
Create some flow charts of all the points from incident discovery till resolution and add in the time requirements /commitments and you will se the optimum time and or condition to escalate..
How long to monitor would depend on your enviroment staff etc.. Today its trivial to monitor a T1 and I look at as the default is to monitor 24 @ 7 .
MRTG will monitor all that stuf for free ..
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