business assurance more than erm

8/14/2019 Business Assurance More Than ERM

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Business Assurance - More than ERM

Applying Business Assurance principles combiningRevenue Assurance and Risk Management practices in theTelecommunications, Media and Entertainment sectors

Introduction

Enterprise Risk Management (ERM) is a good

concept and a fundamental part of what we should

build into our business framework. But what about

all the good stuff that really adds value to the

business? Customer and stakeholder focus, cost

control and profitability, managing and influencing

the market and environmental factors that affect

your business what about getting to grips with

these whilst managing risk?

Business Assurance deals with these issues

through visible business alignment and focus

demonstrating active support for the business and

removing the perception of negativity often

associated with various aspects of risk

management; primarily of holding the business

back from its goals. At some point, every business

function will have had some form of negative

perception of the various business units engaged

in managing risk. Its time we changed that

perception.

We cant go any further without a mention of the

eTOM (enhanced Telecom Operations Map)

Business Process Framework and the

TeleManagement Forum. An excellent institution

and driving hard to implement operational best

practice throughout the industry. An admirable and

difficult task and clearly the Forum is makingsignificant strides forward and many participants/

members are now reaping rewards. Within the

eTOM framework, there is an ERM model that

seeks to ensure the implementation of appropriate

business processes to manage Fraud, Security,

Revenue Assurance, Audit and Intellectual

Property. A significant overlap with Business

Assurance, no doubt, but what we are seeking to

do with Business Assurance is to take a further

step forward genuine coordination of every

related Business Assurance business function and

active, invited participation in the business. No

longer an afterthought, more a required participant

in business planning, operational management

and strategic direction for the business to be

successful.

Why should Business Assurance be so highly

regarded? If you could add significantly to your

bottom line, or entice more large corporate

customers to your network, or reduce retail churnin highly competitive markets would this make

you listen? The problem historically with many

aspects of ERM has been the negative focus of

possible losses. Clearly, avoiding and managing

risk is an essential element of Business

Assurance, but when you consider all the positive

returns that you can touch and feel, then these will

make a big difference not just to the Board, but

to all stakeholders, customers, suppliers; current

and potential. More market influence, more

revenue, better cost control, greater profit at the

product, service and corporate level. But doing it

in a way that is not seen to be obstructive to

business development. Not hindering those

charged with making more money, or improving

customer experience, but giving them the tools to

do what they do best in a way that helps them get

even more from their efforts. Thats what Business

Assurance is about its a risk management

cocktail with a big twist of business common

sense.

The Role of Revenue Assurance

Revenue Assurance has been with us as a

concept since the early 90s. But only in recent

years do we see a concerted focus on this aspect

of our business operations on a wide scale.

Revenue Assurance has been vindicated through

hard-won evidence of the reality that everything in

our technology, organisation and operational

infrastructure does not always work 100%

Business Assurance | Revenue Assurance | Fraud Management | Receivables Management
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correctly! We are so reliant on the integrity of our

switches, transport systems, service platforms,

mediation, billing, collections and provisioning

systems that any small logic error, or technical

glitch, can result in significant revenue leakage or

increased cost and with the data volumes often

concerned, this can be many millions of dollars in a

relatively short time period. And when you also

consider that us humans are also prone to the odd

mistake, then without some form of controls in

place we are certainly going to affect both the top

and bottom line.

Thankfully, Revenue Assurance has been getting

to grips with this conundrum. We have seen a

distinct and wide recognition and understanding of

the issues now emerging globally. And as we spur

further into the digital, IP based, high-speed world

where consumers want everything, and they want

it now, we will find even more opportunity for

cracks in our infrastructure to cause us pain.

Revenue Assurance is the thread through the

revenue stream not just focussing on revenues,

but also on the control of unnecessary costs

optimising profitability. This in itself is a step

towards true business focus, towards Business

Assurance, but there is more to come.

With an increased focus on Revenue Assurance,

we are also seeing some businesses look to the

benefits of integrated functions, in particular

Revenue Assurance, Fraud Management and

Receivables Management, but there are so many

other areas that can complement each other.

Business Assurance Overview

With the power to access and better utilise data

and knowledge from around the business, we are

well positioned to consider the next evolutionary

step in optimising our profits and customer

experience; an even more integrated business

approach to managing risk and profitability.


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Lets jump ahead a little to an industry that has

highly converged technologies, high-speed multi-

media access anywhere and its own equivalent of

a banking infrastructure to manage the inevitable

increase in e-commerce (t-commerce, m-

commerce etc.). So many more points of

interconnection on whole new levels. So many new

and evolved technologies. And so, so many more

business processes to make it all work. Not

forgetting the ever increasing global mobility ofconsumers.

With the evolving industry, there will be evolving

challenges and opportunities. And with the

increasing overlap between communications,

media and financial domains, will come the need

for even greater governance. Our businesses need

to be prepared not only for the inevitable

governance obligations that this will bring, but also

for the opportunities to build business models that

work with high-integrity and profitability as a focus

from the point of concept throughout delivery and

operation.

Recognising what is on the horizon brings the

concept of Business Assurance to life in a real

way. Let us look at the potential for greater

interaction between the various entities in our

business. Most business areas are touched by

Business Assurance:

Marketing not only helping to position the

business as a trusted entity in the eyes of the

customer and industry as a whole, but also

designing profitable propositions with positive

customer experiences based on inputs from

Business Assurance resources.

Product Management working closely with the

marketing team to design and implement assured

products and services, driving the proactive

attention to Business Assurance as the servicesare designed and built. This Product and

Infrastructure Assurance process is an essential

preventative measure in managing risk and

profitability.

Sales delivering the revenues on the

propositions created by Marketing and Product

Management. This is clearly the pointed-end of the

business and as such needs to be carefully

managed to secure good customers, who will stay

with the business, at lowest cost. Fraud and credit

risk is an issue at the front-end, but also this is

often where critical process and system failures

lead to revenue leaks downstream; incorrect

service definitions, selling services that dont exist

and so on. A robust sales and order management

process will negate many risks and enrich the

customer experience.

Customer Services reducing complaints and

disputes, predicting and managing churn and

improving the ability to up- or cross-sell products

and services. There are many aspects ofCustomer Relationship Management (CRM) that

are influenced by a strong approach to Business

Assurance and the various aspects of data that

would be analysed within.

Information Systems and Networks improving

the confidentiality, integrity and availability

(security) of systems and data and the efficiency of

the technology and related processes that

underpin the business operations.

Billing and Charging ensuring accuracy and

reducing the risk of revenue leakage or

inappropriate cost exposure.

Credit and Collections reducing risk exposure,

aged debt balances and bad debt levels. Generally

improving cash-flows whilst improving relationships

with customers using intelligent systems and

processes.


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Inter-party Management keeping costs in check

to improve profitability and ensure the integrity of

3rd party services when represented through your

delivery channels.

Roaming and Interconnect reducing fraud

exposure and revenue leakage, and ensuring the

timely collection of roaming dues.

There are many potential aspects to Business

Assurance. It might not be essential to bring all

related functions into a single team, but certainly

having an excellent level of coordination and

cooperation between teams would be essential if

these were fragmented; creating a virtual

Business Assurance function. As a reference, the

following functions might be considered as within

scope of the Business Assurance team and

process (and possibly more depending on your

interpretation):

Revenue Assurance

Fraud Management

Receivables Management (Credit ,

Collections and Debt Recovery)

Security Management

Governance, Audit and Compliance

Enterprise Risk Management

Insurance Management

Business Continuity Planning, Disaster

Recovery and Incident Management

Government, Law Enforcement Agency and

Industry Liaison

Intellectual Property and Knowledge

Management

Why Business Assurance?

All businesses are exposed to a variety of risks. In

particular, the risks of business disruption, revenue

leakage, uncontrolled costs, inappropriate credit

exposure, fraud and security failure can be

particularly damaging; directly affecting customer

perception, profitability and stakeholder value.

Risks can come from a variety of sources, natural

or man-made, accidental or deliberate, but it is theability to predict, manage and mitigate risk in a

cost-effective and customer-centric way that

differentiates one Service Provider from another,

and can make the difference between success and

failure.

A business strategy that considers risk is essential

to achieving core objectives without it, business

plans and profitability can be critically affected. A

risk management strategy will be brought to life

through the ongoing cycle of risk prevention,

detection, analysis and response. The cycle

enables the continuous tactical and strategic

management of risk as the business changes

shape and direction. A risk management strategy

will therefore consider and integrate with all

aspects of organisation, technology and

operations and should be stimulated to achieve

continuous improvement through performance

monitoring and optimisation.


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Business Assurance further enables business

evolution by ensuring an appropriate balance of

risk management and customer experience -

without that balance, sustainability will be

challenging. With a sensible risk perspective,

Business Assurance also seeks to improve

operational effectiveness and efficiency to achieve

high-performance operations. Intelligent use of

resources and technology in delivering Business

Assurance will generate additional profitability,

liberating cash and resources to enable strategic

business goals.

Key components of Business Assurance include

Revenue Assurance, Fraud Management and

Receivables Management. Carefully applied

knowledge in these domains will accelerate

profitability and improve customer experience.

Empowering resources and teams to deliver high-

performance also requires well-considered,

ongoing development programmes.

The AssuringBusiness vision

At AssuringBusiness we like to look ahead. We like

to challenge thinking in our sector, and drive new

ways of doing business. Moreover, we like to drive

new ways of assuring business. There are already

some organisations adopting Business Assurance

as a concept. There is also an increasing focus on

the intelligent use of software solutions to deliver ahighly effective Business Assurance operation. But

there is more to this than clever system solutions.

Unless we harness those solutions with the right

business processes, supporting appropriate

policies and being driven by skilled people in well-

considered organisation structures, then returns

will never be as strong as they should.

Knowledge is a major asset and I would challenge

all businesses to strive to retain and develop such

expertise where possible. At AssuringBusiness we

work hard to translate our knowledge into real and

rapid benefits each and every time we deliver. I

also urge you to look within to ensure that your

future business structure is organised and

resourced appropriately, looking to the future of

that business, and how best it may be assured andoptimised for the long-term.

Business Assurance is coming on strong. Maybe

not just around the corner for everyone, but maybe

a little along the street. I believe that those who

embrace the concept in this fast-changing digital

world will reap more of the benefits and be much

better positioned to compete in the increasingly

low-margin territories into which we venture.

Please refer to the Services, Solutions andPackages pages of our web-site for a more

detailed perspective of the components that might

be deployed within a strategic plan. Alternatively,

Contact Usto discuss your precise needs.
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