ECL calculation tool
Advanced Risk Management, s.r.o. offers a tool for calculation of impairments according to the IFRS 9 standard. The tool enables to perform ECL calculation for Stages 1, 2 and 3 through the portfolio PD/LGD approach, or through the individual approach (based on discounted expected cashflows in several scenarios). The tool enables to calculate ECL for a variety of instruments (loans, guarantees, etc.).
What is it used for
- calculation of impairments for on-balance and off-balance exposures according to IFRS 9,
- calculation of 12-month as well as lifetime ECL,
- calculation of ECL for individual exposures (Stage 1, 2 and 3),
- consideration of expected cash flow development in several scenarios,
- cash flow discounting through EIR for a given exposure,
- ECL stress testing (e.g. what is the impact of increased PD in a selected segment or in the whole portfolio on ECL, etc.),
- distinction of individual and portfolio approach for calculation of impairments.
Benefits
Main benefits are:
- quick calculation of ECL for IFRS 9
- validation of own ECL calculation
- quick implementation
- effective input data control
- intuitive and easy to use
Who is it for
ECL calculation tool can be utilized by all companies which have to calculate ECL for Stages 1, 2 and 3 according to the IFRS 9 standard.
Presentation of ECL calculation tool
Should you have any questions or would like more information, please do not hesitate to
contact us to organize a demonstration of ECL calculation tool’s functionalities.