Business Assurance | Revenue Assurance | Fraud Management | Receivables Management
Common Questions and Answers about Revenue Assurance in theTelecommunications, Media and Entertainment sectorsHow can I measure leakage to build a business
case for implementing RA tools if I don’t have
the tools to measure leakage in the first place?
This is a common dilemma for many operators andthere are different solutions to address this. Youcan extrapolate a business case based on issuesthat have created a revenue loss in the past andthat would have been discovered much faster if you had the appropriate controls in place. But for the calculation to be realistic only calculate thesavings based on the leakage avoided by rapidintervention due to these new controls. If you donot have sufficient information to do this calculationanother popular method is to calculate anestimated yearly revenue loss based on industryaverages and then estimate the percentage of thisloss that you expect your new controls/ solution toavoid. An increasingly popular method is toundertake an audit using sample data and/or areview of business areas to specifically identifyissues and extrapolate findings accordingly; such areview is undertaken in collaboration with IT andNetwork teams and often with the support of specialist organisations like AssuringBusiness toprovide hands-on project direction and the toolsused in the data analytics.
What are the essential roles in a lean andefficient RA team? How big should the ideal RAteam be?
This depends on the scope of your RevenueAssurance function; the team should includeenough members to be able to distributeresponsibility for the scope at a management leveland across subject matter experts. Additionally youwill need at least one team member to coordinateassurance of new products, services andinfrastructure. The size of the team will depend onthe scope but also to what extent tasks are beingexecuted within the team or outside the team inother departments, e.g. in a dedicated RA IT team,or if part of the team is outsourced.
What is the scope of an RA function?
This will vary from one Service Provider to another,however generally it will include, Billing Integrity,Rating & Charging Integrity, Receivables Integrity,Fraud & Investigations, Product Assurance andReporting and Analysis and be end-to-end (i.e.
cover all the organization’s value streams).
Why is revenue leakage still an issue for operators despite the existence of RA for manyyears now?
Although Revenue Assurance has been a hot topicfor a while now it has not always beenimplemented in an optimal fashion. Very often RAhas lacked a well thought-through strategy andactive C-
level support. It’s easy to set
Revenue Assurance team, but it’s a more
challenging task to implement a sustainable andembedded company-wide Revenue Assurancestrategy.
Should RA controls be used to demonstratecompliance to financial and regulatory acts/rules (e.g. Sarbanes Oxley, Statutory Accounts,Regulator Metering & Billing Direction)?
Some RA controls can effectively contribute todemonstrating compliance, furthermore new SOX/Compliance controls can be created based on themechanisms of existing RA controls. However, onemust be very careful not to turn RA into acompliance function, as RA needs to remainmotivated to proactively find and fix issues, and notslip into the trap of dedicating all its resources to
‘proving compliance’. Keeping the function
focussed on profitability (revenues and costs) isthe best way forward, but leveraging the RAframework where feasible to deliver complementary benefits such as governance canbe useful.