Connect with us

BUSINESS

Jaywing releases Horizon, a new IFRS 9 modelling solution that encapsulates its extensive credit risk expertise

Jaywing releases Horizon, a new IFRS 9 modelling solution that encapsulates its extensive credit risk expertise
  • Jaywing looks ahead to IFRS 9 implementation challenges with launch of Horizon, a new IFRS 9 impairment solution that helps lenders of all sizes meet the requirements quickly, cost effectively and to a best practice standard

Today, credit risk analytics expert Jaywing announced the release of Horizon, its new IFRS 9 impairment solution that enables lenders to quickly and cost-effectively produce IFRS 9 provisions, while supporting stress testing and ICAAP processes.

IFRS 9 will be a significant change to the financial reporting of banks and other lenders. It will affect many stakeholders, including investors, regulators, analysts and auditors. Given the importance of UK lenders in the global capital markets and the wider economy, the effective implementation of the new standard has the potential to benefit many stakeholders. Conversely, a low-quality implementation based on approaches that are not fit for purpose has the risk of undermining confidence in the financial results of lending organisations.

Horizon provides lenders with a best practice approach that deals with all aspects of IFRS 9 impairment modelling using regular feeds of a lenders’ own data. The model engine combines Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD) components to calculate Expected Credit Losses (ECL) over long ranges and under different economic scenarios. In addition, its user-friendly interface allows lenders to adjust the models to their individual requirements, while providing full transparency regarding all components of the solution.

Crucially, Horizon allows lenders to generate IFRS 9 provision without the need for a lengthy and expensive project or significant on-going maintenance overheads, making it a perfect fit for medium to small lenders. It also allows larger lenders to run their data through an alternative approach to sense-check their own bespoke approach.

Horizon includes many features and functional implementations required for IFRS 9, such as:

  • User-friendly functionality to support IFRS 9 impairment calculations and expected loss modelling;
  • A single platform that can be used globally for IFRS 9 and other regulatory requirements;
  • Securely hosted, web-based and operates without the need for other calculation or analysis software;
  • Users are up and running with everything they need much more quickly than equivalent in-house development;
  • Model development, execution and reporting are all undertaken within one environment, with full data exports for use in reporting.

Ben O’Brien, Managing Director, Jaywing, said: “One of the main challenges to IFRS 9 implementation will be the methodology changes from incurred to expected losses. Many lenders won’t have the required expertise on-hand to help them address these challenges. That’s why we developed Horizon, it provides lenders of all sizes with a best practice impairment solution that addresses the many challenges of implementing impairment calculations.”

Jaywing has extensive experience in credit risk analytics and has developed this solution based on over 17 years’ experience helping many of the UK’s lenders from Shawbrook Bank through to Nationwide and Coventry Building Society with IFRS 9, IRB, stress testing, ICAAP and credit grading requirements.

To find out more visithttp://risk.jaywing.com/

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Recent Posts