Data Gaps

Based on the Deal Type Overview and an analysis of real data instance samples, our experts will assist your team in identifying data gaps:

  • Missing or incomplete data
  • Data quality or reliability issues
  • Insufficient timeliness of data availability

Our experts can propose and help design measures to overcome these gaps and might include:

  • Defining rules for (automated or manual) checksums and reconciliation: controls, to ensure the necessary data quality and integrity
  • Filling out missing data, based on default values or mapping rules
  • Data enrichment: filling out missing data, on the basis of the rules on existing data, which may be simple mapping rules but could also include e.g. sophisticated interpolation techniques.

Process & Systems Gaps

Our experts can analyse your entire accounting process and assess its readiness for IFRS 9:

  • Data capture: have the data gaps been successfully overcome and is all necessary data available now?
  • Valuation: how are accounting values currently calculated: by which systems? Is transaction-level analysis possible everywhere?
  • Accounting: which debit/credit journal entries are currently generated? Are they generated at deal level or at aggregated level? Will this be sufficient to ensure IFRS 9 compliance?
  • Reporting & Analysis: How are internal and external reporting requirements met? How will the reports currently produced need to be altered to ensure IFRS 9 compliance?

The existing IT systems will be reviewed in terms of source data production, including your core banking system(s), trading system(s), front-end systems, GL and any data available only in e.g. Excel files or other non-structured formats. We can provide guidance on how these systems may have to be altered to ensure IFRS 9 compliance.

Moreover, we can assist you with a review of your workflow organisation:

  • Who is responsible for which processes?
  • Which approval processes are in place?
  • How is the chronological flow of tasks organised?

Basel II/III Bridge

If you already have systems and processes in place to ensure compliance with Basel II or Basel III, you will obviously want to know, to which extent you can leverage that investment for your IFRS 9 accounting system.

E.g. can you reuse a 12 month forward-looking PD in IFRS 9? If yes, which transformations need to take place?

Same question for the LGD.

In which cases do you base your IFRS 9 risk provisions on the EAD and in which cases on the portfolio’s carrying amount?