A Modular, Flexible, and Comprehensive Solution

The Moody’s Analytics IFRS 9 solution has been specifically designed for banks, corporates, and insurers. It lets them automate and simplify the complex processes required to meet the new accounting standard.

 

To meet the needs of the market, Moody’s Analytics developed a comprehensive set of data and models that support the implementation of credit loss impairment calculations and integrate with clients’ internal systems. More than 150 firms globally use Moody’s Analytics data, forecasts, scenarios, models, and platforms for IFRS 9 compliance.

 

The challenges around the Expected Credit Loss (ECL)/Impairment calculations having the right parameters, models, and a platform to help with ECL estimates. While ensuring their models were relevant to the asset classes in scope for the calculation, financial institutions concentrated on procuring granular data with longer periods of coverage that was not available in-house.


Our solution won several fintech awards including, most recently, the RiskTech100® IFRS 9 Category leader. Read the post-award interview and press release.


A Powerful Solution
GRANULAR DATA

» Extensive private and public firm (listed and unlisted) credit risk recovery and default data for different asset classes including project finance and commercial real estate.


» Loan-level consumer credit and structured credit data.


» Economic, demographic, and financial data for 180 countries and subregions as model drivers.

FLEXIBLE MODELS

» Moody’s Analytics offers multiple off-the-shelf models: Commercial/Wholesale, Retail/Consumer, Structured Credit/Cash Flow Portfolios, and Public Firm. These models are transparent, auditable, and flexible to accommodate a client's needs. 


» Our risk and finance consultants develop custom models for specific asset classes, or can help create hybrid
 models based on Moody’s Analytics and client data.


» Model governance and validation frameworks are in place for all Moody’s Analytics-provided data and models. Validation, back testing, and data quality checks are properly documented.

MULTIPLE SCENARIOS

» We produce multiple scenarios that align with the scenarios’ probability distribution and our deep understanding of the global economy and potential threats. These scenarios extend through long future horizons to satisfy IFRS 9 lifetime requirements.


» Forecasts and alternative scenarios are available for 70+ countries and updated monthly. Moody’s Analytics provides a fully documented methodology and scenario narrative assumptions.

Solution Implementation and Automation
ADVISORY SERVICES

» Our advisory and implementation teams help clients navigate the path to IFRS 9 compliance.

» We work with institutions of all sizes to improve data quality, speed, and standardization of processes.


» We help banks and insurers address accounting standards while streamlining risk management practices.

PROCESS AUTOMATION

» Our user-friendly, auditable platform offers data consolidation, model warehousing, expected credit loss calculation, and insightful analysis.

» Built-in analysis tools and management overlays promote meaningful, efficient decision-making.


» Our solution automates a repeatable provision calculation using a configurable, user-oriented process management tool that interacts with the risk, finance, and accounting teams.


» As a SaaS platform, even smaller institutions can see a lower cost of ownership compared with an installed solution, requiring less in-house technical expertise.

Moody’s Analytics Wins the Inaugural RiskTech100® IFRS 9 Award
Moody’s Analytics Wins the Inaugural RiskTech100® IFRS 9 Award

Taking first place for helping customers solve challenges around IFRS 9 is Moody’s Analytics, winner of the inaugural RiskTech100® IFRS 9 award.

Featured On-Demand Webinar

Featured On-Demand Webinar

IFRS 9 for Insurers: Ready for the Challenge

Given the requirements for insurers to comply with the IFRS 9 standard, Moody’s Analytics subject matter experts Roshni Patel and Nadja Roos shared insights on the current trends that insurers are adopting for the IFRS 9 challenge, and some best practices for modeling provisions.


Topics Include:


  • Acceptable model methodologies and level of granularity
  • Current trends in the insurance market
  • A solution considering the challenges and linkages to IFRS 17
  • Best practices in gearing up for implementation


VIEW WEBINAR
What Makes Us Different

Domain Expertise

Moody’s Analytics employs more than 80 economists, 20 data specialists, 70 researchers, and 20 credit analysts with extensive experience in loss forecasting, and data and model management. Our cross-functional expertise enables clients to draw on a range of support. 

 

Customer Support

We have a global support mechanism to help our clients. Moody’s Analytics offers a dedicated program to ensure that our clients are achieving the best value and best results from the solution. 

 

customer support

Completeness of the Offer

Our solution includes data, models, economic forecasts/scenarios, and advisory services integrated and automated into one platform. This comprehensive solution has long been our greatest differentiator in the market. 

 

customer support

Easy Integration

Our clients can integrate the IFRS 9 solution with other Moody’s Analytics solutions to address additional business cases, gaining efficiencies of integration and consistent data across their analytic platforms.

customer support

Full Documentation

All IFRS 9-related methodologies, data governance, and scenarios that we offer meet IFRS 9 requirements and are fully documented and auditable.

 

customer support

Maximum Flexibility

The modularity of the solution allows users to complement client data and models with Moody’s Analytics overlays to provide more granular data for calculations. 

Cross-Systems Linkages

The solution can be integrated with cash flow, risk, and finance systems, which gives institutions efficiencies and consistencies for their data and models. As a result, clients see greater economies of scale and opportunities for multiple use cases. 

 

Management Analysis and Reporting

An automated feed can be established from the data warehouse to the general ledger for finance, with business reports and waterfall structures for overrides. 

Frequent Updates

Data and models are updated bi-annually or annually to ensure all of the latest data has been captured. With every model update, we publish new papers on validation, governance, and results from the prior year. This approach offers transparency and auditability of the models and modeling process.

Connectivity to Other Accounting Standards

Our solution is linked to other accounting standards such as CECL. It provides global institutions with the linkages required for different regional reporting needs and helps them use consistent data, scenarios, and models for calculations. 

Learn More About Our IFRS 9 Solution

Moody’s Analytics Credit Loss and Impairment Analysis Suite improves credit loss estimation analysis and calculations. Its data integrity, analytics, and regulatory reporting solutions offer a modular, flexible, and comprehensive IFRS 9 impairment solution that facilitates a bank’s efforts to calculate, manage, and report expected credit losses.

 


 

SPEAK to a IFRS 9 EXPERT TODAY:
Our Integrated, Modular Solutions

Moody’s Analytics can deliver a platform/calculation engine in different forms depending on the requirements for each country, such as an on-premises or cloud-based solution. We can meet local IT requirements and adapt the solution accordingly.

Our platform solutions are robust and flexible to accommodate the size and needs of any financial institution. Bringing models and calculation together, our platforms can be implemented as a standalone systems or fully integrated/automated solutions. The platform can be connected to internal accounting systems as well as any complementary Moody’s Analytics solutions.

RiskConfidence™
An ALM system that offers integrated enterprise asset and liability management (ALM), funds transfer pricing (FTP), liquidity risk management, and business and regulatory reporting.
ImpairmentCalc™
An expected credit loss (ECL) impairment calculation engine that produces loss allowance and converts internal rating or through-the-cycle probability of default (PD) to a compliant point-in-time PD term structure.
ImpairmentStudio™
The solution provides a user-friendly and auditable platform for data consolidation, model warehousing, expected credit loss calculation, and insightful analysis of results.
RiskFrontier™
A credit portfolio risk management solution that helps users understand portfolio risk dynamics, manage concentration risk, quantify risk appetite, and conduct stress testing.
Capital Risk Analyzer
The solution combines economic, credit, and accounting know-how to help evaluate strategic decisions based on financial and regulatory metrics for capital planning and stress testing (DFAST, EBA). 
Hear From Our IFRS 9 Experts
Quantifying Capital Impact of IFRS 9

A discussion on how to quantify the cost of capital under IFRS 9, and the ways portfolio concentrations and credit migrations can affect allowances.

WATCH VIDEO
Immediate Strategic Impact of IFRS 9

Learn how to address the immediate IFRS 9 implementation challenges relating to data, models, and infrastructure and their strategic implications.

WATCH VIDEO
Strategic Business Impact of IFRS 9

IFRS 9 will limit the earnings dynamics for long-dated assets, so banks will need to consider the long-term impacts on their business and the marketplace.

WATCH VIDEO

Upcoming Events

Moody’s Analytics CECL/IFRS 9 Forum for Insurers and Reinsurers

Tuesday, May 15, 2019 | 7 World Trade Center, New York, NY | 8:00 a.m. - 5:30 p.m.

REGISTER


Moody’s Analytics EMEA Summit Series: London

Thursday, June 13, 2019 | One Moorgate Place, London EC2R 6EA, UK | 8:00 a.m. - 5:00 p.m.

REGISTER

 

View the calendar of all upcoming events