The new Financial Accounting Standards Board standard for estimating expected credit losses requires significant changes in the way entities calculate credit impairment on financial assets. Challenges can arise when entities attempt to assemble the data that is needed to perform the required analysis. Although much of the necessary data is likely to exist within various internal systems, most financial services organizations are unable to access the data quickly, consistently, and accurately in a coordinated system. In this article, Crowe Horwath LLP reviews the data challenges associated with the new standard and presents an approach to help make the transition.
Read Part 1: Identifying Portfolio Risks
Read Part 2: Data Requirements for Making the Transition
Read Part 3: Governance and Oversight for Making the Transition
Read Part 4: The Resources and Technology Considerations to Make the Transition