FBK Develops New Methodology for Estimation of Credit Losses

FBK consultants have developed and automated the methodology for estimation of expected credit losses pursuant to the requirements of IFRS 9 for Bank PSA Finance RUS.

Roman Kenigsberg, Head of Risk Management Practice, underlines that the new IFRS 9 will be effective starting from 2018.  It will introduce not only new approaches to recording of credit losses, but also new approaches to their management.

“There is an increased need for inexpensive but accurate risk modelling tools among our clients. We have ready-made solutions. At the same time we can take into account the specifics of technologies and information sources used by a client,” he said.

Under the framework of this project FBK consultants have also developed the methodology for determination of internal credit ratings.

Elena Solomatina, Director of Corporate Management Systems Department, says that the solution developed has a user-friendly interface, and it is easily adjusted and scaled according to the specifics of a client.

“The solution increases estimation efficiency by several times due to the decreased number of manual operations and significantly increased data processing speed,” she said.