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.

For the customer specific consideration of objective evidence also to options are provided: Recovery Cash flows can be imported from any source or captured in the Customer Impairment Workbench.