Preparing for IFRS 9 – A tailored approach to loss forecasting…

With a tailored approach, you get the best forecast of future losses for you – one that suits your portfolio perfectly rather than a one-size-fits-all solution.

Here’s how the ultimate tailoring of the 1908 London Olympics marathon led to the event we all recognise today:

The Royal Family requested that the marathon start on the lawn of Windsor Castle and finish in front of the Royal box at the Olympic stadium – adding 385 yards to the route. 26 miles and 385 yards has been the official length of a modern marathon ever since.

A tailored approach to loss forecasting can also leave a lasting legacy for your business. Experian can provide you with this approach, offering a range of solutions to help you overcome the challenges inherent in transitioning to IFRS 9:

• Many businesses struggle to find sufficient internal or external resources with sufficient skillsets to address the challenges of IFRS 9. These resources are typically already fully dedicated to business as usual activities, so Experian’s consultancy-led support can be a real asset, either supporting your in-house teams or providing a fully outsourced capability.

• Another challenge is the availability of appropriate data, perhaps due to of a lack of detail in the information you hold on the historic performance of your accounts. Again, Experian can help – using our wealth of economic data at the local level to create highly accurate, tailored forecasts.

• Experian differs from other IFRS 9 partners in that we can support your IFRS 9 transition across all the disciplines you may need – from building custom models incorporating credit risk and economic data, to providing market data to supplement historical views and using economic trends and forecasts to factor in the impact of the economy on lending policy.

• Finally, Experian can support your business with on-going evaluation of forecast and actual losses, benchmarking your portfolio loss performance against the rest of the market or a peer group. Lifetime loss models are re-assessed quarterly or bi-annually, taking into account changes in the economy and recent movements in loss rates.

For more guidance on how Experian can provide your business with a tailored IFRS 9 solution, read our more detailed ‘Loss forecasting under IFRS 9’ paper.