Valtech has prepared an exclusive tool to assist HKFRS 9 preparers to measure their expected credit loss rates based on empirical data and prevailing industry insights across various industries. Let’s take the following three industries as examples, being a typical auto component manufacturer, a consumer product distributor and a power supply company as follows:
1、Quick credit loss insights consolidated from public disclosures of thousands listed companies across
Asian markets to support management’s ECL analysis and auditor’s reference.
2、Instant access to empirical loss distributions on trade receivables from various sectors and industries.
3、Benchmarking analysis on your historical default rates against the industry average
4、Forward-looking adjustments implied from the latest marco-economic and industry specific moves.
5、Tailored professional services to map the market insights to your HKFRS 9 ECL matrix and risk policies.
We map the supportable market insights onto your ECL Assessment!
Our professional team helps you to with the following time-consuming HKFRS 9 workflow:
1、Segment your various types of financial assets into explainable risk baskets.
2、Analyse the risk nature, historical default frequency and magnitude of each of the risk baskets.
3、Map the industry insights and forward-looking adjustments onto your historical records.
4、Estimate the 12-month ECLs and life-time ECLs for various risk baskets.
5、Summarise the ECLs in a provision matrix (under the simplified approach) and/or a 3-stage risk
allowance matrix (under the general approach).
6、Benchmark the overall ECL result against empirical market data and researches.
7、Communicate the result to management and the company’s auditors.
8、Summarise the risk findings in tables and infographics for potential areas of improvements.
9、Assist management to compile a comprehensive ECL policy for ongoing ECL monitoring.