IAS39 differentiates 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 covers the calculation of risk provision based on portfolios. For each portfolio the specific Probability of Default and Loss Given Default can be

• calculated based on 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 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.