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.
Working Smarter With Expected Credit Loss Solutions From SAS
Recommended Solutions for Expected Credit Loss
- SAS® Allowance for Credit LossAddress CECL and IFRS 9 requirements with a fully governed, automated workflow.
- 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.
Solutions That Extend Expected Credit Loss Capabilities
- SAS® Model Risk ManagementSignificantly reduce your model risk, improve your decision making and financial performance, and meet regulatory demands with comprehensive model risk management.
- SAS® Risk ModelingQuickly develop, validate, deploy and track risk models in house – while minimizing 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.