Managing Revenue Risks
Why RA & Fraud Managers
should rethink the way they
manage their business
Efrat Nissimov
Director o...
CFO Challenges
 Can I find out which revenue
streams are safe and which
are at risk?
– Accurate forecast of leakage to
be...
RA & Fraud Challenges
 Building a justifiable execution program
 Effectively maintaining existing programs
 Effectively...
RA Challenge #1 – Building a Justifiable RA Program
Situation

Today

RA organizations are swamped with requirements, and ...
RA Challenge #2 – Maintaining an effective RA Program
Situation

RA implements dozens of new controls every year.

Today

...
RA Challenge #3 – Communicating Contribution to C Level
Situation

Mature RA organizations invest in preventive controls, ...
RA Activities Distribution

Source: TM Forum, Revenue Assurance Survey 2012
7
Market Trends
 Growing awareness of risk management
among telecom organizations
– Volatile business environment requires
...
Market Trends
 CFOs / corporate boards have to report
on risk exposure and mitigation
– Compliance and accountability
– C...
Market Trends
 RA & Fraud departments are in
transition towards proactive and
business oriented approach
– Looking beyond...
Utilizing Risk to Improve Activities
Business Driven
Report
Set Business Goals

Risk Mitigation
Planning

Exposure, Risk L...
Risk Framework is Supported by TM Forum
 Business information
– Revenues, plans, goals, status, etc.

 Risk & controls i...
Use of Best Practices
Use of RA Best Practices Documents by TM Forum Members
20 Respondents, 180 Indications less 38 N/A =...
Summary
Incorporating Risk Management methodology into RA & Fraud
 Addresses major challenges in the CFO department
– Pri...
THANK YOU!
www.cvidya.com
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Why should RA & Fraud Managers rethink the way they manage their business?

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In Digicel's 7th Annual International Business Forum 2013 in Panama, Ms. Efrat Nissimov, cVidya's Director of Product Management, presented “Managing Revenue Risks"

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Why should RA & Fraud Managers rethink the way they manage their business?

  1. 1. Managing Revenue Risks Why RA & Fraud Managers should rethink the way they manage their business Efrat Nissimov Director of Product Management © 2013 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA
  2. 2. CFO Challenges  Can I find out which revenue streams are safe and which are at risk? – Accurate forecast of leakage to be expected in the coming year  How do I set clear business goals across my organization? – RA, Fraud, Internal Audit, etc.  How do I assist my managers? 2 – Balancing between emerging services / technologies and highly profitable services
  3. 3. RA & Fraud Challenges  Building a justifiable execution program  Effectively maintaining existing programs  Effectively communicating contribution to C-level managers 3
  4. 4. RA Challenge #1 – Building a Justifiable RA Program Situation Today RA organizations are swamped with requirements, and struggle to prioritize controls across their business. Priorities are often set based on “gut feeling”, rather than on an objective basis. The Challenge 4 Telcos constantly expand their business (new technologies, services and business models), which requires creating new controls or modifying existing ones. Is there a framework that enables creating a work plan that takes business goals, controls effectiveness, etc. into account while understanding the impact on the business?
  5. 5. RA Challenge #2 – Maintaining an effective RA Program Situation RA implements dozens of new controls every year. Today The Challenge 5 As time passes, newer controls become the focus, while the older ones gradually lose their effectiveness, and are sometimes simply ignored. How can RA decide if controls are effective? How can RA decide which controls are under-performing? How can RA determine which cases are worth investigating?
  6. 6. RA Challenge #3 – Communicating Contribution to C Level Situation Mature RA organizations invest in preventive controls, which makes showing contribution through detected leakages impossible. Today RA organizations report mainly on leakages, recovery levels, number of deployed controls, figures, etc. The Challenge Is there a way to report all RA contributions (found, recovered and prevented leakage) to management? In $ value? 6
  7. 7. RA Activities Distribution Source: TM Forum, Revenue Assurance Survey 2012 7
  8. 8. Market Trends  Growing awareness of risk management among telecom organizations – Volatile business environment requires structured management to address risks – Organizations acknowledge the contribution that risk management can make to business performance – Risk officers are more involved and have more influence on operations – RA and Fraud practices have become compatible with risk management methodology 8
  9. 9. Market Trends  CFOs / corporate boards have to report on risk exposure and mitigation – Compliance and accountability – Current reports (loss and recovery figures) are retrospective and only partially describe what happened in the past, without offering any view for future 9
  10. 10. Market Trends  RA & Fraud departments are in transition towards proactive and business oriented approach – Looking beyond loss detection – Money ($) and not just controls – Forecast & focus on future products and services 10
  11. 11. Utilizing Risk to Improve Activities Business Driven Report Set Business Goals Risk Mitigation Planning Exposure, Risk Level, Recovery Forecast Risk Assessment per LOB/Process Evaluate Rules Effectiveness Execute and Monitor Follow-up, Fix, Reclaim Risk Guided Analysis Define Operational Rules & KPIs Operations Oriented 11
  12. 12. Risk Framework is Supported by TM Forum  Business information – Revenues, plans, goals, status, etc.  Risk & controls information – Inventory of Risks – Inventory of Controls – Methodology – Risk assessment – Benefits measurements – Existing controls, detected leakage (*) Provided by TM Forum’s GB941 12
  13. 13. Use of Best Practices Use of RA Best Practices Documents by TM Forum Members 20 Respondents, 180 Indications less 38 N/A = 142 (16) (16) (16) (16) (16) (16) (16) (15) (15) 44% 44% 38% 31% 38% 40% 38% 33% 25% 27% 33% GB941-E [3] GB941-E [2] GB941-C RFX 100% 63% 56% 20% 47% 44% 6% 6% GB941-B (RAMM) 0% GB941 Guidebook 38% 44% 13% 31% 38% 50% 19% 19% 19% TR131 GB941-E [1] GB941-D GB941-A (RASK) Not familiar with it and not using it Source: TM Forum, Revenue Assurance Survey 2012 13 Familiar with it but not using it Familiar with it and using it
  14. 14. Summary Incorporating Risk Management methodology into RA & Fraud  Addresses major challenges in the CFO department – Priorities, benchmarks, reporting  Encourages transition from Operations oriented to Business driven decision making  Supported by TM Forum  Used in various extent by many operators globally 14
  15. 15. THANK YOU! www.cvidya.com

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