Highlights: - Calculation of expected credit losses for all stages
- Consideration of macroecnonomic scenarios
- Coverage of the entire process chain of risk provisioning
- Specific workbench provides comprehensive functionaility for analysing historical default and performance data for stage 1 and stage 2
- Customer Impairment Workbench for workflows within and between work units to ensure a close follow-up of significant deals
- Embedded Performance Data Base
- Maximum auditability through traceability to individual deal level and finest granularity of calculations
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IFRS 9 differentiates three different models of risk provisioning:
- Credit deterioration model
In this model, a deal will be assigned depending on its deterioration of in credit quality to one of three stages. Each stage has specific requirements regarding the calculation of the expected credit loss (ECL). All financial assets are considered in this model if they do not fullfil the conditions for the following models.
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- Purchased or originated credit-impaired (POCI) deals
POCI deals are financial assets that are credit impaired on at initial recognition.For the treatment of POCI deals, please read more in the manual: POCI-deals.
After the introduction of IAS 39 in recent years led to a worldwide harmonisation of accounting standards, the effect was further intensified by IFRS 9. IFRS 9 has been introduced in numerous countries or is about to be introduced. In addition, numerous local accounting standards have been made accessible for IFRS values.
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The process chain for risk provision includes the following functional steps:
- Segmentation
- Stage Assignment
- ECL Calculation
- Financial Accounting
- Reporting and Analysis
Beside 
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Besides the components for segmentation and stage assignment, the following components are important for the treatment of risk provision under IFRS 9:
The blueprint for IFRS 9 impairment is composed of the following components and other blueprints:
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In order to optimise operational processes, simulations can be determined several times irrespective of the current accounting process and the month-end processing. A comprehensive audit trail and audit compliance for data and methods are available for all calculations.