“Revenue assurance is about ensuring that ALL transactions for ALL events have been correctly billed without losing revenue to fraud. (,system malfunction or error)” -Pitta Satya Sai Kumar.
It involves a process or software solution that enables an organisation to monitor all income heads to be sure that all revenues or charges are accurately captured by the organisation’s system for all services rendered. Instead of correcting errors after they occur, or not detecting and correcting them at all, revenue assurance enables the organisations to examine and plug dozens of actual or potential leakage points throughout the application system.
Why Revenue Assurance?
The need for a Revenue Assurance arises out of the many opportunities for revenue to be ‘lost’ either through system failure or through human error. Revenue Leakage can occur due many reasons, organisations generally have reasonably complex process and technical infrastructure with many points of data generation, input, transformation and output.
The advent of digital services and the ever-changing Technology is adding even more complexity to system process. With the complexity and often real-time nature of the environment, things can sometimes go awry in a big way. Common examples of issues contributing to revenue leakage includes:
· Errors or mis-representation in receivables and payable
· System failure to process income or charges accurately.
· Human errors and mistakes.
· Incorrect service parameter and charging definitions…etc.
In fact, the majority of risks and issues of revenue leakages are rooted in human error and system process failure. Although technical challenges do present issues, these often stem from incorrect specification or configuration of charges or income in the system.
Resources that would otherwise be engaged in generating revenues maybe lost due to one of the above stated reasons.
Impact levels of revenue leakage will vary depending on the nature, scope and sophistication of the controls deployed.
Even with Risk Assurance functions and processes in place, poor design and operation can lead to more significant exposure. Organizations have recovered millions of potential revenue leakages after performing Revenue Assurance exercise within their organisation.
Now, due to competitive pressure companies are beginning to focus on internal tightening of their process to stop revenue losses.
Revenue Assurance process is one of the simplest and easiest ways to stop revenue leakages.
Send me a message if you are interested in conducting a revenue assurance exercise for your organisation or you need more information.
Connect with me and lets discuss further. You never know what your company is loosing in terms of revenue until you perform this all important exercise...