why should ra & fraud managers rethink the way they manage their business?
DESCRIPTION
In Digicel's 7th Annual International Business Forum 2013 in Panama, Ms. Efrat Nissimov, cVidya's Director of Product Management, presented “Managing Revenue Risks"TRANSCRIPT
© 2013 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA
Efrat Nissimov
Director of Product Management
Managing Revenue Risks
Why RA & Fraud Managers should rethink the way they manage their business
2
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?
– Balancing between emerging services / technologies and highly profitable services
CFO Challenges
3
Building a justifiable execution program
Effectively maintaining existing programs
Effectively communicating contribution to C-level managers
RA & Fraud Challenges
4
RA Challenge #1 – Building a Justifiable RA Program
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.
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?
Situation
Today
The Challenge
5
RA Challenge #2 – Maintaining an effective RA Program
As time passes, newer controls become the focus, while the older ones gradually lose their effectiveness, and are sometimes simply ignored.
RA implements dozens of new controls every year.
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?
Situation
Today
The Challenge
6
RA Challenge #3 – Communicating Contribution to C Level
RA organizations report mainly on leakages, recovery levels, number
of deployed controls, figures, etc.
Mature RA organizations invest in preventive controls, which makes
showing contribution through detected leakages impossible.
Is there a way to report all RA contributions (found, recovered and
prevented leakage) to management? In $ value?
Situation
Today
The Challenge
7
RA Activities Distribution
Source: TM Forum, Revenue Assurance Survey 2012
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
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
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
11
Utilizing Risk to Improve Activities
Operations Oriented
Business Driven
Follow-up, Fix, Reclaim
Execute and Monitor
Define Operational Rules & KPIs
Report Exposure, Risk Level,
Recovery Forecast
Risk Guided Analysis
Risk Assessment per LOB/Process
Set Business Goals
Risk Mitigation Planning
Evaluate Rules Effectiveness
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
13
Use of Best Practices
Use of RA Best Practices Documents by TM Forum Members 20 Respondents, 180 Indications less 38 N/A = 142
13% 19% 19% 19% 25% 27% 33%
44% 38% 44% 50% 38% 33%47%
63% 56%44% 44% 38% 31% 38% 40%
20%
6%6%
38%31%
(16) (16) (16) (16) (16) (15)(15)(16)(16)
0%
100%
GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A (RASK) GB941-E [3] GB941-E [2] GB941-C RFX
Not familiar with it and not using it Familiar with it but not using it Familiar with it and using it
Source: TM Forum, Revenue Assurance Survey 2012
14
Incorporating Risk Management methodology into RA & Fraud
Summary
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
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