Expected Credit Loss (ECL)
Modelling under IFRS 9

22 – 26 July 2024
Johannesburg South Africa

Register Now! Limited Seats Available!

R17, 999.00 Per Delegate

Introduction:

The single biggest change brought in by IFRS 9 Financial Instruments is expected credit loss (ECL) impairment accounting. The impairment requirements in IFRS 9 radically change how financial assets loss provisioning is considered in the financial statements from incurred credit loss to expected credit loss. The ECL impairment requirements entities to use techniques that require them to arrive at an estimate of losses based on their expectations of future conditions. By its very nature it is modeling and data intensive. 

This workshop is aimed at helping professionals develop credit risk modeling skills required to model and calculate financial asset impairment in compliance with IFRS 9

Training Objectives

  • Understanding of the requirements of IFRS 9 on incurred loss modeling 
  • Develop core skills in creating Expected Credit Loss Models 
  • Develop core skills in validating the correctness of Expected Credit Loss Models 
  • Familiarize participants with methods, processes and systems used to measure, validate and limit credit exposures 

Who Should Attend:

CROs, CFOs, COOs, Presidents/VPs/EVPs/FVPs/SVPs, Global Heads, Department Heads, Managing Directors, Directors, and Managers of: 

  • Asset/Liability Management 
  • Accounting 
  • Balance Sheet Management 
  • Bank & Country Risk 
  • Auditors 
  • Internal Audit. 
  • Interest Rate Risk 
  • Risk Analysis 
  • Risk Control 
  • Counterparty Credit Risk 
  • Credit Portfolio Management 
  • Quantitative Analysts 
  • Portfolio Strategy 
  • Prudential Policy 
  • Supervision/Regulation 
  • Compliance 
  • Capital Management 
  • Capital Modeling 
  • Credit Research 

Course Outline :

Introduction

Overview of the requirements of IFRS on Expected Credit Loss 

Interest and time value of money concept: 

  • Introduction 
  • Future value concept 
  • Present value concept 
  • Annuity and periodic payments 
  • Present value Vs. Net present value 
  • Compound interest, the time value of money and discounted cash flow (DCF) methodologies 
  • Case studies 

Data Analysis 

  • Importing data 
  • Using data table 
  • Perform What-If Analysis 
  • Using Data table for Analysis 
  • Sorting and filtering data 
  • Using pivot tables 
  • Data validation 
  • Protection 
  • Auditing worksheets 
  • Writing Functions:  
    • Logical functions 
    • Text functions 
    • Date functions 
    • Lookup and reference functions 
    • Financial functions 
  • Case studies 

Credit Management: 

  • Credit exposures 
  • Measuring credit exposure 
  • Credit scoring and Probability of Default:  
    • Behavioural Score Card 
    • Application Score Card 

Expected Credit Loss Modeling: 

  • Statistical Method for Modeling Credit 
  • Estimation Probability of Default 
  • Estimating Loss Given Default 
  • Estimating Exposure at Default 
  • Incorporation of forward-looking information into the Estimation of PD and LGD 
  • Incorporating Scenarios into the Estimation of PD and LGD 

Model Validation 

Project 

End of the workshop

IN HOUSE AND ONLINE TRAINING

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While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.

For Registration and other Training arrangements,
contact us on the detail below.

SOUTH AFRICA : +27 11 057 6001
TANZANIA Cell: +255 769 688 544
WhatsApp +27 79 574 0389
info@bmktraining.co.za / www.bmktraining.com