IFRS 9 ECL Impairment Modelling

IFRS 9 credit impairment modelling is an accounting requirement. The process of maintaining compliance is complex and onerous. The challenge for credit risk professionals is that while ensuring compliance, the IFRS 9 impairment modelling process must also deliver business value. Ideally, the process is automated and has embedded controls. Inherently, the model provides insights that inform risk appetite and portfolio optimisation. The model must surface changes in the business environment and make itself invaluable to stakeholders.

The model assumptions, methods, and results must be explained in simple terms to build confidence in the estimates. Business leaders expect to see emerging trends and issues reflected in their loan portfolio performance.

This requires an available capacity in IFRS 9 experts, efficient model build processes, and a model that runs more frequently than just annually. However, challenges with resident expertise, capacity constraints, and key-person risks are real.

Having delivered successful results for many bank and non-bank lenders, you can be confident that we help achieve alignment between your business strategy and the IFRS 9 requirements. Accelerators, proven frameworks, and prior experience simplifies the computational and procedural complexity. Industry standard technologies are deployed. Our governed delivery process is transparent, uses sound methodology, and takes the pressure off your modelling team.