IFRS 9 enterprise solution: SAS

 

The SAS solution for International Financial Reporting Standard (IFRS) 9 is an add-on component to SAS Risk Stratum, an integrated platform that improves efficiency for banks by allowing the solutions to share data, models and scenarios. It provides a complete solution for modelling of expected credit loss as required by IFRS 9 credit impairment accounting standards. Banks can use the software to manage the workflow of IFRS 9 cycles, validate data, classify instruments, conduct stage allocation and generate disclosure and management reports. It provides a centralised, flexible, high-performance analytics environment to help banks improve their stress-testing, risk management and financial reporting capabilities.

With the SAS solution for IFRS 9, banks can develop the models they need to meet regulatory demands and quickly understand the impacts on their financial statements. The collaborative platform allows them to leverage internal and external data to develop models. It offers simple setup and maintenance of complex forecasting and analytical models as well as templates for common model types. The centralised, controlled environment and library make it easy to manage and search models and their components.

The simplified coding environment enables fast, efficient model implementation, supports different code languages and reduces coding errors. Built-in time series capabilities further simplify modelling, and model versioning supports strong governance and decreases modelling risk.

The design allows for execution with high levels of granularity, which helps with transparency and explainability. The centralised process and workflow orchestration provides the right level of governance and control to improve auditability, transparency and repeatability.

Manuel Fortes

Flexible reporting enables users to quickly design and deploy reports, aggregate or drill into results to understand financial impacts and automate disclosures for enhanced accountability.

The simulation environment includes what-if analysis that allows users to see the impacts on target measures such as fair value or impairment. It uses many variables to recalculate, including several risk factors. High granularity in calculations allows for accuracy and quick interpretation of results.

The solution has been enhanced to provide a simplified attribution analysis process, more complex and flexible workflow capabilities and a rules engine to support more complex rule functionality. The disclosure reporting package was also updated in line with industry best practice, with the solution now offering 360-degree linking and relationship diagrams that help users visualise each monthly production run.

Finally, the IFRS 9 solution now includes a tracking and notification system to report data issues, record remediation action plans and track all associated correspondence.

The judges said:

• “Very good solution all around.” 
• “Good to see the emphasis on model development and model governance – as well as the ability to integrate with other SAS products.”
• “This product brings together a fully integrated risk and finance view generally not evident in most products.”

Manuel Fortes, Senior manager, industry consulting, risk research and quantitative solutions at SAS, said:

“We are honoured to win this award for our IFRS 9 solution, which was launched just two years ago on a new unified risk platform, SAS Risk Stratum. The SAS Solution for IFRS 9 improves efficiency by avoiding the need to duplicate data, models and other related tasks, and allows users to experience the same concept across solutions but with the right perspective depending upon their needs. These new concepts improve user productivity by providing better integration and a more consistent approach between the different areas and ensuring the right level of transparency.” 

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