Feature
Business Assurance - More than ERM
Applying Business Assurance principles combining
Revenue Assurance and Risk Management practices in the
Telecommunications, 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. It’s time we changed that
perception.
We can’t 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 making
significant 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
Business Assurance | Revenue Assurance | Fraud Management | Receivables Management
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 churn
in 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. That’s what Business
Assurance is about – it’s 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 90’s. 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%
 Feature
Business Assurance - More than ERM
Applying Business Assurance principles combining
Revenue Assurance and Risk Management practices in the
Telecommunications, Media and Entertainment sectors

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
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.

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.
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.

Business Assurance | Revenue Assurance | Fraud Management | Receivables Management

 Feature
Business Assurance - More than ERM
Applying Business Assurance principles combining
Revenue Assurance and Risk Management practices in the
Telecommunications, Media and Entertainment sectors

Let’s jump ahead a little to an industry that has preventative measure in managing risk and
highly converged technologies, high-speed multi- profitability.
media access anywhere and its own equivalent of
a banking infrastructure to manage the inevitable Sales – delivering the revenues on the
propositions created by Marketing and Product
increase in e-commerce (t-commerce, m-
Management. This is clearly the pointed-end of the
commerce etc.). So many more points of
business and as such needs to be carefully
interconnection on whole new levels. So many new
managed to secure good customers, who will stay
and evolved technologies. And so, so many more
with the business, at lowest cost. Fraud and credit
business processes to make it all work. Not
risk is an issue at the front-end, but also this is
forgetting the ever increasing global mobility of
often where critical process and system failures
consumers.
lead to revenue leaks downstream; incorrect
With the evolving industry, there will be evolving service definitions, selling services that don’t exist
challenges and opportunities. And with the and so on. A robust sales and order management
increasing overlap between communications, process will negate many risks and enrich the
media and financial domains, will come the need customer experience.
for even greater governance. Our businesses need
to be prepared not only for the inevitable Customer Services – reducing complaints and
disputes, predicting and managing churn and
governance obligations that this will bring, but also
improving the ability to up- or cross-sell products
for the opportunities to build business models that
and services. There are many aspects of
work with high-integrity and profitability as a focus
Customer Relationship Management (CRM) that
from the point of concept throughout delivery and
are influenced by a strong approach to Business
operation.
Assurance and the various aspects of data that
Recognising what is on the horizon brings the would be analysed within.
concept of Business Assurance to life in a real
way. Let us look at the potential for greater Information Systems and Networks – improving
the confidentiality, integrity and availability
interaction between the various entities in our
(security) of systems and data and the efficiency of
business. Most business areas are touched by
the technology and related processes that
Business Assurance:
underpin the business operations.
Marketing – not only helping to position the
business as a trusted entity in the eyes of the Billing and Charging – ensuring accuracy and
reducing the risk of revenue leakage or
customer and industry as a whole, but also
inappropriate cost exposure.
designing profitable propositions with positive
customer experiences based on inputs from
Credit and Collections – reducing risk exposure,
Business Assurance resources. aged debt balances and bad debt levels. Generally
improving cash-flows whilst improving relationships
Product Management – working closely with the
with customers using intelligent systems and
marketing team to design and implement assured
processes.
products and services, driving the proactive
attention to Business Assurance as the services
are designed and built. This ‘Product and
Infrastructure Assurance’ process is an essential
3

Business Assurance | Revenue Assurance | Fraud Management | Receivables Management

 Feature
Business Assurance - More than ERM
Applying Business Assurance principles combining
Revenue Assurance and Risk Management practices in the
Telecommunications, Media and Entertainment sectors

Inter-party Management – keeping costs in check Why Business Assurance?

to improve profitability and ensure the integrity of
3rd party services when represented through your All businesses are exposed to a variety of risks. In
delivery channels. particular, the risks of business disruption, revenue
leakage, uncontrolled costs, inappropriate credit
Roaming and Interconnect – reducing fraud exposure, fraud and security failure can be
exposure and revenue leakage, and ensuring the particularly damaging; directly affecting customer
timely collection of roaming dues. perception, profitability and stakeholder value.
Risks can come from a variety of sources, natural
There are many potential aspects to Business
or man-made, accidental or deliberate, but it is the
Assurance. It might not be essential to bring all
ability to predict, manage and mitigate risk in a
related functions into a single team, but certainly
cost-effective and customer-centric way that
having an excellent level of coordination and
differentiates one Service Provider from another,
cooperation between teams would be essential if
and can make the difference between success and
these were fragmented; creating a ‘virtual’
failure.
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

 Rec eivables Managem ent ( Credit,

Collections and Debt Recovery)

 Security Management
A business strategy that considers risk is essential
 Governance, Audit and Compliance to achieving core objectives – without it, business
plans and profitability can be critically affected. A
 Enterprise Risk Management risk management strategy will be brought to life
through the ongoing cycle of risk prevention,
 Insurance Management detection, analysis and response. The cycle
enables the continuous tactical and strategic
 Business Continuity Planning, Disaster
management of risk as the business changes
Recovery and Incident Management
shape and direction. A risk management strategy
will therefore consider and integrate with all
 Government, Law Enforcement Agency and
aspects of organisation, technology and
Industry Liaison
operations and should be stimulated to achieve
 Intellectual Property and Knowledge continuous improvement through performance
Management monitoring and optimisation.

Business Assurance | Revenue Assurance | Fraud Management | Receivables Management

 Feature
Business Assurance - More than ERM
Applying Business Assurance principles combining
Revenue Assurance and Risk Management practices in the
Telecommunications, Media and Entertainment sectors

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. Knowledge is a major asset and I would challenge
all businesses to strive to retain and develop such
Key components of Business Assurance include expertise where possible. At AssuringBusiness we
Revenue Assurance, Fraud Management and work hard to translate our knowledge into real and
Receivables Management. Carefully applied rapid benefits each and every time we deliver. I
knowledge in these domains will accelerate also urge you to look within to ensure that your
profitability and improve customer experience. future business structure is organised and
Empowering resources and teams to deliver high- resourced appropriately, looking to the future of
performance also requires well-considered, that business, and how best it may be assured and
ongoing development programmes. optimised for the long-term.

The AssuringBusiness vision Business Assurance is coming on strong. Maybe

not just around the corner for everyone, but maybe
At AssuringBusiness we like to look ahead. We like
a little along the street. I believe that those who
to challenge thinking in our sector, and drive new
embrace the concept in this fast-changing digital
ways of doing business. Moreover, we like to drive
world will reap more of the benefits and be much
new ways of assuring business. There are already
better positioned to compete in the increasingly
some organisations adopting Business Assurance
low-margin territories into which we venture.
as a concept. There is also an increasing focus on
the intelligent use of software solutions to deliver a Please refer to the Services, Solutions and
highly effective Business Assurance operation. But Packages pages of our web-site for a more
there is more to this than clever system solutions. detailed perspective of the components that might
Unless we harness those solutions with the right be deployed within a strategic plan. Alternatively,
business processes, supporting appropriate Contact Us to discuss your precise needs.
policies and being driven by skilled people in well-
considered organisation structures, then returns
will never be as strong as they should.

Business Assurance | Revenue Assurance | Fraud Management | Receivables Management