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-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:
Provides full regulatory compliance regarding impairment assessment and reporting;
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
Flexible to the clients’ needs;
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;
CIF offers customer support and consulting services for its products thought the year.