IAS39 differentiates between two stages:
- Incurred but not reported losses (IBNR)
- Objective evidence of impairment
The solution covers for both stages the required process chain:
For IBNR it For IBNR, it covers the calculation of risk provisions on the basis of portfolios. For each portfolio, the specific Probability of Default and Loss Given Default can be
- calculated using historical default information or it can be
- delivered from any source.
It covers the calculation of risk provision based provisions on the basis of portfolios. For each portfolio, the specific Probability of Default and Loss Given Default can be calculated based on historic using historic default information or it can be delivered from any source. The combination of both, the loss-rate, will be applied to the Gross Carrying Amount.
For the customer specific consideration of objective evidence also to in the specific provisioning process two options are provided:
Recovery Cash flows can be
- imported from any source or
- captured in the Customer Impairment Workbench.