K-IFRS9 Technical Solution

An essential, robust technical software solution to support IFRS 9 implementation

K-IFRS9 technical solution supports financial institutions in implementing IFRS 9. Building on our tried and tested stress testing engine which, amongst other functionality, projects credit losses into the future.  It also supports the user in business-line classification, impairment levels, provisioning, Finrep and management reporting.

A Proven and Robust Platform

Built on its mature stress testing engine KST, which captures data at a cash flow level of granularity, it then applies business rules that determine IFRS 9 exposure classification and measurement, impairment and reporting values. These are calculated using expected loss parameters and then present valued at the ‘effective interest rate’ taking into account exposure specific fees and costs.

Transparent and Secure

K-IFRS9 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 ‘Effective Interest Rate’ is calculated. K-IFRS9 allows users with sufficient access authority to intervene manually in, for example, Impairment Stage and Expected Loss parameters, but also permits the setting of automated flags for attributes such as Low Credit Risk status 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 K-IFRS 9

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

  • Development of best case and worst case scenarios, storing of ECL parameter sets, permitting comparison of a range of outcomes
  • Extensive ‘What If’ functionality, permitting the remodelling of the portfolio and ECL outcomes given the marginal effect of one or more new transactions