Select – 9*

Select*-9 is a powerful, flexible, easy to use and transparent software for calculating impairment amounts and generating disclosures under the new IFRS 9 standard which brings significant changes to the way calculations on impairment for exposures are made. The most significant changes are:

  • Transition from incurred loss to expected loss concept;
  • A three-stage model based on changes in credit quality since initial recognition;
  • New rules for EIR calculation.

Select*-9 solves the following challenges that a client may have in impairment process according to the new standard:

  • EIR calculation – The software includes all major embedded optionalities significant to that particular product in EIR calculation (prepayment, fx and interest rate caps and floors..);
  • Efficient collateral allocation, in order to minimize total impairment;
  • PD calculation based on transition matrices or flow rates;
  • LGD evolution in life-time expected loss calculation;
  • Mapping of exposures into impairment stages, as prescribed IFRS 9;
  • Calculation of impairment;
  • Reporting and disclosures.

Key functionalities of Select*-9 include the following:

  • Automated collateral allocation;
  • Effective interest rate can calculated by the software, or supplied by the client;
  • Management of impairment stages according to the level of credit risk associated with the asset;
  • Generation of contractual cash flows for lifetime ECL calculation;
  • Calculation of impairment amounts;
  • Provides necessary disclosure functionality;
  • Multi-lingual interface;
  • Multi-user software with flexible privilege levels;
  • Agile software support;
  • Input data validation:
    • Ensures easy implementation and stable production of the software.

 

Key features of Select*-9 include the following:

  • In-time solution;
  • Very cost-effective
  • Provides full regulatory compliance regarding impairment assessment and reporting;
  • Methodology
    • All tools are accompanied with detailed methodology;
    • Select*-9 methodology can be readily integrated into internal risk management procedures.
  • Reliability of input and output
    • Tools for extensive validation of logical and financial consistency of input data;
    • Tools for validation of calculation results and comparison with official financial reports;
  • Built on the proven reliability of RiskGuard* 3.0 software system
    • Cost-effective;
    • Flexible to the clients’ needs;
  • Data Mart:
    • Fully compliant with IFRS 9 regulation requirements;
    • All interim calculations are being saved for audit purposes;
    • Comprehensive database, used in all CIF risk management solutions, including RiskGuard*0 and Select*-9, ensuring easy integration of these two solutions;
  • Customer support
    • CIF offers customer support and consulting services for its products thought the year.