They make their required phone calls and send out the necessary dunning notices. If payment is not made, they cancel the service and write off the account so a more aggressive collection agency can make money. Some of these risk managers may even look at extreme high usage at the billing cycle, yet still wonder why they can't reduce or eliminate the bad customers from getting onto their company's network. What they forget to realize is risk management never stops. It doesn't take a break.
Risk management occurs every day that a customer is on the network.
This is the process of proactive and continual evaluation of a customer from the moment he gains access to the network until the time he no longer has access. Strong risk management will use transactional collections as its backbone. One benefit is that bad customers are identified faster for early termination, but the true benefit is that good customers are identified and may be moved into better service levels to reduce churn. In the end, risk management is a fine balancing act that isn't there to pit the sales force against the risk manager, but is a concerted effort on the part of everyone to improve the odds that revenue will be collected. And, ultimately, this effort will increase a CLEC's bottom line.