Quantify Leakage Exposure
Build a leakage exposure estimate with scope, rate, period, and confidence.
A missing overage fee may have underbilled customers for two billing cycles. Leadership needs a defensible exposure estimate before deciding whether to hold invoices or book an accrual. A3 exposure estimate: scope -> exclusions -> rate logic -> period -> confidence Not quite: multiplying the highest rate by every account creates a dramatic number, but it violates decision usefulness. It ignores contract caps, actual usage above threshold, effective dates, and confidence. Leaders may overreact or lose trust in the estimate. Scope population Start with 227 accounts that used the feature during the two affected cycles. Population comes before dollars. If…
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