Risk Management Solutions
Expected Credit Loss
Satisfy the expected loss accounting standards with confidence and efficiency.
How SAS® Supports Expected Credit Loss
A controlled, high-performance environment.
The expected credit loss accounting standards, CECL and IFRS 9, add much more complexity to the reserving process, and institutions face significant challenges. SAS provides a controlled, high-performance environment to execute the entire ECL process in a substantially reduced time frame.
Configurable workflows & centralized orchestration
- An embedded workflow engine enables you to specify tasks, timelines and approval paths.
- Centrally monitor status, and track progress against plans, approvals, attachments and comments for each step.
- Centralized scenario management lets you import, export, store and change scenarios.
- Includes configurable portfolio segmentation and business evolution plans.
Powerful data management with integrated governance & controls
- Preconfigured data quality rules are mapped to the BCBS239 principles.
- A controlled, centralized model library automatically documents all changes to data and facilitates model control by enabling all models to be versioned and searched.
- Promote models from development to production, and archive previous model versions.
- Allows transparent and well-controlled entry of post-model adjustments.
- Manages security for protection of project data, models, scenarios, reports and configuration.
Aggregation & reporting
- Quickly design and deploy ECL reports with easy-to-use, self-service reporting templates and out-of-the box visualizations.
- Aggregate or drill into results on the fly to understand the drivers and assess the financial impacts.
- Automate disclosures and posting into ledgers for enhanced accountability.
High-performance, adaptive architecture
- High-performance, in-database/in-memory execution allows timely, on-demand simulations, analysis and decisions.
- SAS solutions scale to the size and complexity of your institution, up to the largest and most complex global enterprises, designed to be adaptable to changing business needs and market requirements.
Why choose SAS® for expected credit loss?
SAS provides a comprehensive, integrated environment – deployed on-side or hosted in a cloud environment – that can adapt to changing business needs and market requirements.
Achieve greater efficiency & significantly shorter cycle times
Reduce costs and effort required to operate and maintain, while getting results quickly, using a highly automated process. Centralization of process flow eliminates redundancies and non-value-add activities.
Gain improved capabilities & controls
Perform what-if analysis and simulations over multiple scenarios. Transparent process flow is fully auditable and repeatable, enabling robust and defendable estimates each cycle.
Align expected credit loss estimates with stress testing & other risk & finance functions
SAS expected credit loss offerings sit on top of an integrated risk and finance platform (SAS Risk Stratum) that also includes components for stress testing, ALM and model risk management.
Working Smarter With Expected Credit Loss Solutions From SAS
Turning stress testing into competitive advantage with advanced analytics
SAS helps leading international banking group Standard Chartered PLC meet stress-testing requirements and assess the effect of crisis scenarios on its future P&L and balance sheet.
Chartis Names SAS a RiskTech100® Category Leader for IFRS 9
Recommended Solutions for Expected Credit Loss
- SAS® Risk StratumAdopt a risk foundation that delivers three tiers of capabilities to match your needs, with each level building on the previous one to form a complete risk management foundation.
- SAS® Solution for CECLQuickly meet new US Financial Accounting Standards Board current expected credit loss (CECL) standards with best practices for modeling, workflow and reporting.
Solutions That Extend Expected Credit Loss Capabilities
- SAS® Model Risk ManagementModel Risk Management(MRM)from SAS governs your entire model development and risk management life cycle. Find out how SAS MRM can reduce model risk and improve model governance. SAS UK.
- SAS® Risk ModellingQuickly develop, validate, deploy and track risk models in house – while minimising model risk and improving model governance.
Explore More on Expected Credit Loss & Beyond
- Article IFRS 9 and CECL: The challenges of loss accounting standardsThe loss accounting standards, CECL and IFRS 9, change how credit losses are recognized and reported by financial institutions. Although there are key differences in the standards for CECL (US) and IFRS 9 (international), both require a more forward-looking approach to credit loss estimation.
- Article CECL: Are US banks and credit unions ready?CECL, current expected credit loss, is an accounting standard that requires US banking institutions and credit unions to estimate life-of-loan losses at origination or purchase.
- White Paper Scenario-Based Risk Management: Overcoming the ChallengesAs regulatory stress test regimes mature, financial institutions are looking for ways to harness investments they made in stress testing programs to gain additional business value.