More Related Content Similar to Ifrs9 infographic (20) Ifrs9 infographic1. IFRS 9
IFRS 9 adoption deadline has passed
From now on, lenders must follow and meet updated loss analysis in line
with European Banking Authority (EBA) expectations.
Effective and efficient model validation requires
Our combination of data and analytical expertise across both credit risk and economic
disciplines, economic forecasting and specialist consultancy expertise, gives us the knowledge
to steer the credit institution on the IFRS 9 validation process.
Sound modelling, validation and forecasting should
always embrace these elements
Data quality on input
information
Model design
assessment
Output performance
evaluation
Comprehensive
documentation of the
validation process
Meeting IFRS 9 requirements needn't be an uphill struggle.
What you need for peak performance.
On the basis of those elements, an ongoing IFRS 9 validation
blueprint should be composed of three assessment areas
How can Experian help?
Adoption of accurate credit
models including PD, LGD, EAD,
survival, pre-payment
Clarity over assumptions and
forecasting including accurate analysis
of volume of new accounts and quality
of the new business
Retain accurate analysis of key
benchmarked standards
including the movement of loans
Robust credit processes
including underwriting,
workout and pricing
Quantitative Qualitative Business
Models performance in terms of
stability, accuracy, discrimination
power, calibration through:
Statistical test
Back testing analysis
Benchmarking analysis for instance
by using a credit bureau information
Expert valuation on:
Methodology: review of underlying
theory, model design and
methodological choices
Documentation: regular review and
update of model development and
validation documentation
Compliance of the credit risk
processes impacted by IFRS9
standards (such as underwriting,
pricing, collection, restructuring and
recovery).
© Experian 2018.
The word “EXPERIAN” and the graphical device are trade marks of Experian and/or
its associated companies and may be registered in the EU, USA and other countries.
The graphical device is a registered Community design in the EU.
All rights reserved.
Corporate Office
Cardinal Place
80 Victoria Street
London, SW1E 5JL
www.experianplc.com
Capabilities and
knowledge
Automation Strong focus on
governance
Transparent and
detailed documentation
Best practice in credit-risk management
The EBA says all lenders must put consistent capital standards, ensure
sound credit risk management practices and accurate loss forecasting are
always at the heart of everything they now do.
Robust policies and procedures
Lenders should have robust policies and procedures in place to
accurately and consistently assess, analyse, measure, risk and expected
credit losses (ECL).
We can help you reach peak perfomance