Global Learning for Operational Leaders
Introduction
Course overview
The expected credit loss model requires banks, finance companies and many corporates to recognise credit losses earlier, based on forward-looking information rather than waiting for losses to occur. Implementing it well demands a combination of accounting knowledge, credit risk understanding, data management and statistical modelling.
This training course explains the expected credit loss requirements of IFRS 9 and how they are applied in practice. Participants learn the staging approach, the definition of default, significant increase in credit risk, and how probability of default, loss given default and exposure at default are estimated and combined with macroeconomic scenarios.
The course also covers simplified approaches for trade receivables, governance and validation of models, management overlays, disclosures and the audit and regulatory scrutiny that expected credit loss estimates attract.