Global

Details

  • Industry: Telecommunications
  • Type: Survey report
  • Date: 3/28/2012

Revenue Assurance’s role in the organization is evolving…slowly 

Although virtually all the organizations taking part in the survey have an independent Revenue Assurance department, just one in five report directly to the Board of Directors – suggesting a lack of influence at the highest levels.

RA teams reporting to the Audit Committee and/or Board of Directors

2009 2011
Africa & Middle East 30% 50%
Asia Pacific 6% 18%
Europe & Americas 15% 28%

Only a quarter of respondents have a centralized Revenue Assurance function with representatives at each business/operating unit, which may make it harder to achieve consistent practices and free flow of information. Interestingly, those regions with greater centralization (Europe and the Americas) area also better at identifying revenue leakages.



"The appointment of a Chief Revenue Assurance Officer would be a clear sign that an organization is serious about the growing danger of leaks and fraud."


- Romal Shetty, Head of Telecommunications, KPMG in India


Leakage can occur at any stage of the revenue generation cycle, and cross-functional membership enables greater understanding of organizational interdependencies. Again, the survey responses suggest room for improvement, as fewer than half of respondents say their Revenue Assurance team is cross-functional.


85 percent of Revenue Assurance functions are formally involved in signing off on new projects, indicating that leakage and fraud are front of mind when launching products, billing systems and migrations, or when moving into new geographies. This practice is especially prevalent in Asia Pacific, reflecting the frequent roll-out of new products in this region.


And while most operators already outsource core functions such as networks, billing and customer services, 40 percent say they would never contract out revenue assurance.


Fraud management is still emerging, with just two in five survey respondents claiming to have a dedicated fraud management function, and under half having a fraud risk management framework.

 

Share this

Share this

Get in touch with KPMG

View the full report