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

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. 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. RA & Fraud Challenges
 Building a justifiable execution program
 Effectively maintaining existing programs
 Effectively communicating contribution to C-level managers
3

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
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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. 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. 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. RA Activities Distribution
Source: TM Forum, Revenue Assurance Survey 2012
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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
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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. 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
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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. 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
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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. 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
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15. THANK YOU!
www.cvidya.com