IFRS9 – Special Market Report
Posted: 1 November 2016 | Source: Chartis
International Financial Reporting Standard 9 (IFRS 9) is a high-impact symbolic, operational, IT and organisational transformation event for finance and risk: an arranged marriage that is turning an uncomfortable courtship and good intentions into a powerful successful partnership that is greater than the sum of its parts. It is one of a few interlinked, unavoidable initiatives in finance, regulation, compliance and risk management that are catalysts to invest in sustainable best practice.
IFRS 9 has foundations in common with a number of other key regulatory trends. Therefore, the foundations for an easier implementation of IFRS 9 can be achieved if an organisation has performed well, for example, in implementing:
- Basel Committee on Banking Supervision regulation 239 (BCBS 239) for data management
- Comprehensive Capital Analysis and Review, Dodd-Frank Act Stress Test and European Bank Authority stress testing
- Rigorous enterprise credit and counterparty risk management that is internal ratings-based (IRB)
- Close working practices, with risk management and finance sharing a common culture with regard to risk-adjusted performance management