• Support of specific approaches depending on the deterioration of credit quality and significance of a financial asset
      • Separate workbench to cope with requirements of probability-weighted approaches and individual recovery-based approaches
      • Risk provision traceable to individual deal level including calculation details and underlying data
      • Consideration of scenarios
      • Simulation before journalisation

Risk provision is an important topic in all GAAPs.

Nonetheless each GAAP answers the following questions in a different way:

FlexFinance provides the following components as instruments for the configuration, simulation and consideration of risk provisions in financial statements:

For GAAP-specific usage, please refer to the specific sections. For IFRS 9 please refer to IFRS 9 Blueprint Impairment.

The result of the risk provision process in FlexFinance are

These data marts support detailled analyses, for example: 

Figure: Transfers between impairment stages (gross basis presentation)     

Figure:  Movements in allowances and provisions for credit losses