Sep 2020 | Credit Decisions

IFRS 9 Credit Loss Insight

Created to measure and report financial assets and liabilities, the international financial reporting standard IFRS 9 can be an incredibly powerful tool in understanding risk and meeting your regulatory responsibilities. However, like so many tools trusted by the financial industry, it needs to be recalibrated if it’s to provide accurate, relevant insights in the light of Covid-19.

Even before the crisis began, there was evidence that the IFRS 9 models some businesses were using just weren’t strong enough to deliver the accuracy needed. Some only factors in economics at macro level, while others weren’t sensitive enough to specific portfolio shape or quality, changing risk profiles or the need to make quick, easy management overlays.

The pandemic has brought these shortfalls into sharp focus and presents the industry with an opportunity to address these weaknesses whilst adjusting for a post-pandemic world. We’re here to help you do that, using the latest insights to make sure your IFRS 9 results are as reliable, robust and supportable as Prudential Regulation Authority (PRA) guidance recommends, while reducing the time your team spends generating them.

How can Experian help?

Experian’s Ascend Intelligence Services have developed a powerful on-demand new tool, IFRS 9 Credit Loss Insight, enabling you to calculate IFRS 9 expected credit losses (ECL) in just a few clicks. The tool allows you to generate and evaluate your own ECL models baed on CAIS bureau data and Delphi customer level risk scores. Furthermore, We can combine our extensive CAIS data coverage with our industry leading probability weighted economic scenario forecasts, and your internal view of your portfolio, to provide everything you need for IFRS 9 credit loss forecasting.

Watch the demo below where Experian’s Liz Clarke, Head of Regulatory Analytics, and Alastair Porter, Senior Analytics Consultant, show how this new tool works and how it can help you.