John Fitzgerald, Head of Model Enablement, AIB, will be delivering a presentation discussing the IFRS 9 implementation readiness and batch execution for banks and financial risk professionals. This focuses on topics including: building efficiently executable models, appropriate forward looking indicators, data aggregation and loading and more.
John Fitzgerald, Head of Model Enablement, AIB has 16 years’ experience in the financial services industry, the last 12 of these in risk measurement and modelling, including modelling for regulatory capital and IAS39 provisions. Has has always been involved in the practical aspects of getting models embedded in the business processes they support and with IFRS9 this is a step up in the degree of complexity involved.
The ultimate outcome of all the IFRS9 effort has to be practical. The process must run every month, it must fit into reporting timelines, results must be available for inclusion in business MI and to inform decision making. Inefficient models with extended execution times can’t be part of this.
John will be delivering a presentation at the upcoming IFRS 9: Impairment and Implementation focusing on the implementation readiness and batch execution. He has explained that there are many suspects which could effect these factors leading up to the 2018 implementation. These include data availability, model complexity, degree of automation, rapidly shifting industry consensus, and governance processes.
There are several questions which have not yet been answered in relation to the Governance and the forward looking indicators. Financial risk professionals must be aware of the challenges which they could be facing, in relation to this, John has stated that it’s the Tolstoy problem: positive trends are all alike but every crash is unique. In making predictions we are either blind to the issue, using past data to build models, or over-conservative by forcing disaster into every downturn.