Chrisitan Düsterberg, Head of Risk Methods and Models for Erste Group Bank, joined the RiskMinds Regulation Digital Week to provide some insights on IFRS9 Best Practice, with a focus on impairment. Christian will also be a part of RiskMinds International, as part of a panel pinpointing the methodological challenges and uncertainties within IFRS9.
Watch the full webinar with Christian:
RiskMinds top take-away insights:
- IFRS9 concepts are prone to highly theoretic and not yet practical interpretation. The best theoretically desirable approach is not always the best practical one.
- It is imperative to have close alignment with relevant auditors and regulators
- Sound internal governance and explicit application of judgement to determine the organisation's interpretation (and choices) in defining its IFRS9 framework is also a must.
- There needs to be clear definition of "run the bank" or "business as usual" policies and processes in place.
- Accounting regulators or enforcement agencies have a more specific mandate to ensure correct implementation.
- It will be best practice to prepare for regular monitoring of likely stage transitions.
- Harmonized implementation of IFRS9 is easily done with a harmonized IT implementation, but IT implementation will need to be consistent with provision governance and changes documented and approved.