K-IFRS9 Technical Solution

An essential, robust technical software solution to support IFRS 9 implementation, administration, control and reporting

KnowCo’s IFRS9 Manager is a purpose-built technical and reporting solution for IFRS 9. It also supports users in business-line classification, setting impairment levels, provisioning, regulatory reporting and MI.

A Proven and Robust Platform

Built on KnowCo’s mature stress testing engine ‘KST’, which captures data at a cash flow level of granularity, the IFRS 9 Manager then applies business rules that determine IFRS 9 exposure classification and measurement, impairment and reporting values. These are calculated using expected credit loss (ECL) parameters and then present -valued at the ‘Effective Interest Rate (EIR)’ – taking into account exposure-specific fees and costs.

Transparent and Secure

The IFRS 9 Manager provides the essential infrastructure and functionality required by IFRS 9 for any firm. It is the place where data is stored – potentially large volumes over long periods – and where the EIR is calculated. The system allows users with sufficient access authority to intervene manually in, for example, Impairment Stage and Expected Credit Loss parameters, but also permits the setting of automated flags for attributes such as Low Credit Risk status, Significant Increase in Credit Risk (SICR) and movement between Impairment Stages. In all cases, such changes and the authority and reason for making them are logged in the audit trail of all history, which cannot be amended.

Regulatory Reporting

In the EU there is mandatory FINREP reporting, but the system can be configured for any reporting regime. Out of the box management reports are comprehensive, but can be tailored to any institution’s preferences.

New scenario functionality for the KnowCo IFRS 9 Manager

Announcing the availability of new functionality in our IFRS9 Technical & Reporting Solution:

  • The development of multiple scenarios – in effect, alternative ECL parameter sets – permitting comparison of a range of outcomes and supporting the institution’s case for the most probable scenario, facilitating full compliance with the Standard itself and regulatory requirements.