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Meeting the demands of IFRS 9 and CECL is a serious challenge for financial institutions, especially given the existing load from multifarious compliance, risk, data and modernization programs. IFRS 9 & CECL significantly change one of the fundamentals of accounting, from post-event management of impairment to modelling expected future loss, and create new challenges for how Risk, Finance, Compliance, IT & Data interact.

One of the key challenges when determining ECL is to identify the right quality, granularity and timeliness of data from disparate sources and to validate lineage consistently across many disparate systems and businesses. Firms need to review their IT capability and governance structures to manage both the amount and quality of data collected and to set up collection and reporting mechanisms that are robust to trace and audit.

Achieving the level of transparency and responsiveness required to meet the needs of business users, auditors or regulators is not a simple matter.  IFRS9 joins the worlds of Risk, Finance & IT in new ways and whilst the knowledge exists, identifying, extracting and transforming it into the required form with all capabilities and demonstrable veracity needed in time to meet regulatory deadlines places extraordinary loads on your Subject Matter Experts.

In most banks, the existing risk and accounting IT systems are complex. They span a range of technologies, from End-User Computing (such as Microsoft Excel and Access) to traditional data transformation and reporting products, and suffer from a lack of SME availability. It is essential to automate the extraction of lineage and calculation logic of finance data, so that the changes required by IFRS 9 can be implemented safely within the deadlines.  The accuracy and speed of ZDLC's knowledge automation, coupled with its broad technology coverage, reduces the risks from human error & helps meet audit & regulatory deadlines.