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Our Top Credit Risk Management Blogs From The Past Year

December 13, 2018 at 7:55 AM

In our third roundup of 2018, we list the most popular blogs from our Credit Risk Management topic. Our credit risk blogs have mainly revolved around IFRS 9 and legislation changes this year, and have aimed to provide expert advice and insights into the current landscape.

These blogs are must-reads before the end of 2018.

Most Popular 5 Credit Risk Blogs

The Predicted Impact Of The Change In NCA Proof Of Income Regulation

Does Proof of Income (POI) enable creditors to lend more responsibly? Or does it reduce the access to credit for many South Africans? Last week a controversial court ruling was passed effectively eliminating the requirement for proof of income documentation on credit applications in South Africa.

In this blog, we take a look at how the initial POI regulation impacted consumers and the credit world, why and how the changes came about and what these new changes will mean to South-Africans.

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Economic Modelling Guidelines In IFRS 9

Part of IFRS9 is the creation of data-driven models to most accurately predict expected credit losses.  Much of the prediction is derived on historical data, but IFRS9 also requests that we need to consider forward-looking projections or considerations, as the future may not be exactly like the past that is often the underlying premise of forecasting models. Hence the requirement for expert adjustments with management foresight.

In this blog, we explore some of our learnings in economic modelling with IFRS9.

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Key Considerations When Managing Your IFRS 9 Forward-Looking Overrides

 Part of IFRS9 is creating data-driven models to most accurately predict credit losses.  On top of the technical models are the compulsory forward-looking economic models (empirical or expert based) and the optional management overrides.

We are frequently asked about management adjustments, how many are acceptable, how do you manage them and when are they justified?  The technical models are derived on historical data and for various reasons, and because we need to consider forward-looking predictions, the future may not be exactly like the past.  Hence there is a requirement for occasional expert adjustments with management foresight.

In this blog, we explore the administering of management overrides.

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Getting The Most Out Of IFRS 9

While the journey to International Financial Reporting Standard 9 (IFRS 9) compliance has come at quite a cost to many credit-granting businesses, many are using the in-depth analytical exercise as an opportunity to make more informed decisions in their business.

Today we talk to one of Principa’s leading IFRS 9 analysts about some of the learnings he has acquired over many engagements with banks and retailers who have embarked on the IFRS 9 journey.

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Cloud Versus On-Premise: Which Solution Is Best For Credit Lifecycle Software?

If you're tasked with selecting a credit lifecycle software for your business, one of the most significant decisions facing you is whether to go with cloud-based or on-premise software. It's a question we get asked often, but the answer is often more complicated than an outright recommendation of one or the other. Each solution has pros, but also cons and therefore you’ll need to compare the two in-depth and select the option that suits your business strategy, and more importantly, your IT strategy.

In this blog, we’ll help you weigh up your options by taking a look at the pros and cons of both on-premise and cloud credit lifecycle software solutions and provide you with considerations you need to take into account during your evaluation process.

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