Achieving Optimal IFRS 9 Compliance

IFRS 9 will have a substantial financial impact on banks and create implementation challenges. By taking an optimal approach to compliance, banks can balance the financial impact and the effort required and still ensure compliance. To achieve this goal, banks will need significant support from technology. In this paper, we explore the software functionality needed to support optimal IFRS 9 compliance for banks.

Across the globe, large financial institutions are working to understand the implications of the latest impairment requirements introduced by IASB1 as part of the IFRS 9 package. According to a recent Deloitte industry survey, this single, forward-looking “expected loss” impairment standard will have a significant financial impact for the majority of large banks.

Given that IFRS 9 requirements will be effective Jan. 1, 2018, banks are beginning to pay greater attention to this new accounting standard; IFRS 9 implementation budgets doubled during the last 12 months. But as discussed in this paper, any steps they take toward IFRS 9 compliance should not be taken in isolation, but rather in the context of existing regulatory pressures. With Basel III, CCAR, stress testing, BCBS 239 and other requirements, banks are already exposed to high levels of regulatory scrutiny and devoting substantial attention to compliance efforts.

Finally, it is expected that key jurisdictions will implement similar impairment approaches to IFRS 9, with the most relevant being the FASB’s Current Expected Credit Loss project. These initiatives will combine to broaden the scope of banks that need to implement ECL-based impairment approaches.


Click here to access SAS’ detailed analysis.

The Essential CIO Guide to Artificial Intelligence

The topic of AI has reached such a fever pitch in the media with the coverage of driverless cars, conversational bots and even movies made by AI that it’s only a matter of time before every CEO starts asking their CIO “What’s our AI strategy.

For many CIOs this will be a “deer in the headlights” moment since the topic of AI is so multi-faceted it’s hard to know where to start. We put together this e-book as a primer for CIOs wanting to get to grips with the topic of AI.
We start by giving some insight and context into why your CEO is asking this question, why now, and why you. Then, we will give you a foundational framework to think about AI so you can give your CEO a thoughtful response. Finally, we will discuss how you as CIO, can engage the business on the topic of AI and important considerations when evaluating AI vendors.
So, why is the CEO asking you this now? CEOs are humans too and they react to their environment. Their environment is often dominated by other CEOs, their board, and the outside world. AI as a topic has risen to the boardroom and the popular press with even Vanity Fair recently publishing an article titled “Suddenly Everyone is Obsessed with AI.” So if your CEO hasn’t broached the AI topic yet, they soon will.ai_breakthrough