Risk provisioning under IFRS 9. Have you already found a solution?

23.03.2016

The determination of risk provisions under IFRS 9 calls for new processes and methods which usually entails investing in software.We provide a suitable solution for very diverse situations.

Do you know the volume of loans that changed from stage 1 to stage 2 on 29 February?

Our solution knows exactly when and why a financial asset was allocated to a particular stage and can document this. Hence, the necessary transparency and traceability are provided at internal level. Information is processed and made available for analysis as required by regulators. 

Have you already chosen a model for impairment stages 1 and 2?

Then the solution will calculate impairment-relevant values such as PD, LGD and risk provisions for alternative scenarios with the macroeconomic parameters of your individual model. If you have not yet decided what is the right model for you, please see our range of standard models. The parallel use of alternative models with the information available on default and the comparison of results will help you to choose.

Is the organisational process for stage 3 automated?

Is information on default exchanged, using lists or Excel, between the business units involved in the process for determining risk provisions and/or internally within the department? If necessary, the solution automates, monitors and documents the organisational processes that are required for risk provisioning.

Are you not sure how to start implementation procedure?

We would be pleased to advise and assist you if you are concerned about the functional requirements of IFRS 9, the effects on your organisation and the potential workload for the departments involved.

Do you dislike investing in software?

If you only want to use what you really need, then our components are a cost-effective solution that you can integrate quickly and simply into your development.

Have you already installed enough software systems and databases?

But the methods and processes called for under IFRS 9 are still not covered to your satisfaction? If this is the case, then our Impairment Calculation Engine, for example, could enhance the existing solution. These functions can be used immediately without modifying the existing installations.