Roundtable: IFRS 9 Validation

Deloitte Romania is delighted to invite you to Banking Risk and Regulatory Roundtable, organised on April 25th at 9.30am at Deloitte premises, 4-8 Nicolae Titulescu Road, East Entrance, 2nd Floor, District 1, Bucharest.

On January 1st 2018, IFRS 9 standard came into force and many financial institutions started using complex internal models without the scrutiny and the prior approval from the supervisory authorities.

Less than one year ago, almost half of the respondents have not decided on their processes for the validation and back-testing of the classification of exposures in the different stages and the ECL measurement.

The IFRS 9 standard requires the entity to regularly review the methodology and assumptions used for estimating expected credit losses to reduce any differences between estimates and actual credit loss experience. Much more details are given in the report issued by Basel Committee back in 2015 and the guidance from EBA from May 2017 which should be taken as mandatory requirements. In the same time, ECB TRIM papers on internal model validation can be considered as reference points while implementing the validation framework.

A comprehensive external validation of the internal models ensures better interaction with the statutory auditor and with the regulator based on strong argumentation. Furthermore, a strong model governance framework and infrastructure covering the end-to-end model lifecycle is needed more than ever.

It is not too late to acknowledge the importance of the model validation, the implications of the model risk and take corrective measures.

Agenda:

• Why validation of the IFRS 9 ECL is needed?
• Model Risk and the role of senior management
• The elements of a sound model governance framework
• How to validate the IFRS 9 models and the validity of the underlying assumptions?
• How to establish an independent validation framework for the auditor and the supervisory authorities?
• Key challenges and actions

Speakers:

Elena Grigore – Senior Manager – Financial Services Industry Risk and Regulatory, Deloitte Romania

Andrada Tanase – Manager – Financial Services Industry Risk and Regulatory, Deloitte Romania

Octavian Stoica – Senior Consultant – Financial Services Industry Risk and Regulatory, Deloitte Romania

Who should participate to this event? 

The roundtable will be of particular interest to Chief Financial Officers, Chief Risk Officers, Head of Audit and internal audit and risk management specialists.

Participation to this event is free of charge and access is granted by invitation and registration only. Discussions will be held in English.

Please register at this event until April 19^th, 2018 by responding with RSVP to bankingrisklab@deloittece.com.