We identified Revenue Leakage as part of our strategic studies via Wits, and this was for Old Mutual. As any company loses Revenue, we identified and developed a framework that can be implemented to prevent Revenue Leakage.

1. Revenue leakage
Hell’s 1st

2. 2
Agenda
01 Introduction
02 Definition
03 Findings
04 Framework
05 Conclusion

3. Introduction | Why we chose the topic?
3
• The team selected this topic based on the following:
– Alignment to the 8 battlegrounds
– Delivering value to our shareholders
– Ability to add value to the organization’s existing processes
• Not shooting out the lights, just making it shine brighter

4. Definition
4
Revenue Leakage, at a very high level, is the unnoticed leakage of money from a business, which is due to
factors such as human error, inefficient processes and controls that ultimately affect profit. It was first
identified in industries such as banking and telecoms, where complexity of operations is a key characteristic,
and is often classified as an unrecognised risk. The leakage usually occurs in medium to large entities with
decentralized processes, which provides openings for revenue losses to materialize unnoticed.
Example:
A water bucket with several holes. The user continues to fill
the bucket with water and no matter how much he/she
tries to fill the bucket, it never reaches the limit.
Revenue leakage aims to identify the holes in the bucket
and identify quick fix and long term means to plug it.

5. Research
5
Research scope:
• Consultancy and research firms e.g. Gartner, CEB, PWC and E&Y
• Revenue Leakage specialists e.g. Pramata
• Interviews with key internal stakeholders including:
• Case studies from professional audit and advisory firms
• Other literature
Name Organisation/Business Unit
Derek Muller Treasury Manager, Group Finance
Johan Lotz Senior Actuary, Mass Foundation Cluster
Melody Bam Team leader, Corporate Segment

6. Findings | Root causes
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Operations
Price increases
Payment terms
Investment
method
Service
Obligations
Mandates
Front office
Products,
guidelines and
renewals

7. Findings | Sources of leakage
7
People
•Human error
•Over-reliance on
manual process
•Insufficient training
•Fraud
•Wrong pricing
Process
•Reviewing and investigation
processes
• Silo business areas
•Lack of client integration
•Lack of technology integration
Technology
•Operating
legacy or
disparate data
systems
•Poor quality
data.
Legacy

8. Framework | Identify and plug
8

9. 9
The way forward
• Change in the culture and mind shift is
required
• Checklist
• No initial technology costs to set-up and uses
existing resources
9
Administration (System
and Processes)
Collection of Premiums
Cash management
and Investments
Business Intelligence

10. Old Mutual is a Licensed Financial Services Provider
THANK YOU