Implementation of Risk Provision Calculation with regards to IFRS 9
and redesign of interfaces of SAP Bank Analyzer
Project Goal
- Introduction of a new application for the single transaction-based calculation of risk provisioning data in connection with the introduction of the new accounting standard IFRS9.
As-Is Situation
- For the bank management processes in accounting and reporting, key figures for risk provisioning were provided at general ledger account level prior to the changeover to the IFRS9 accounting standard.
- It was not possible to assign them to individual transactions in the calculation methods of SAP Bank Analyzer.
- In order to improve the single-transaction-based calculation basis, this information should be provided in SAP Bank Analyzer in the future.
Challenges
- Use of existing single-transaction risk metrics (e.g., PD) as input data for the new application to determine risk provisioning using a new interface from SAP Bank Analyzer at the single-transaction level.
Solution
- Iterative approach to the concept of the new interface for earnings ratios from credit risk calculation to the new application for risk provisioning as well as the integration platform involved.
- Design phase for interface incl. action alternatives for identified deviations was defined. On the basis of this, technical solution approaches for the necessary implementation and development specifications were carried out.
- Development specifications for new interface were taken into account, including requirements for subsequent operation. Test scenarios and cases for necessary test activities were coordinated with the responsible units.
- Test data definition and requirements were closely coordinated with the business unit, which was taken into account up to the functional acceptance.