What is SAS Allowance for Credit Loss?
The purpose of this post is to introduce SAS Allowance for Credit Loss on SAS Viya and compare it to the SAS Expected Credit Loss solution. SAS Allowance for Credit Loss is an integrated risk management solution that enables you to address the requirements of the Current Expected Credit Loss (CECL) and International Financial Reporting Standards 9 (IFRS 9) regulations and business challenges that are related to calculation of the expected credit loss of your organization.
SAS Allowance for Credit Loss enables you to support the following actions:
- Prepares data for risk calculations
- Performs risk calculations
- Performs attribution analysis
- Uses various workflows
- Provides a purpose-built, role-specific user experience
Out with the old...
The older version used to solve CECL challenges is called SAS Expected Credit Loss. Some of its features include:
- Enabling framework to support ECL & IFRS 9 accounting standards for more efficient model execution.
- Data preparation with DQ and segmentation
- ECL model templates – ECL curves model and ECL state transition matrix (STM) model
- Stage allocations for IFRS 9
- Data visualizations
- Modeling capabilities
- Batch processing
- Attribution analysis
In with the new...
Although SAS Expected Credit Loss offers many capabilities, it does not compare to the long list of functionalities that SAS Allowance for Credit Loss offers:
- Includes all SAS Expected Credit Loss features
- More modern user interface
- Full support for CECL and IFRS 9 accounting standards including workflows, modeling, and reporting
- Workflows to support recurring production accounting runs and cycles
- Sample, configurable rulesets for DQ, classification, and post-model adjustments (Q- Factor, adjustments and allocation)
- Sample, configurable reporting dashboards and disclosure reports
- Accounting Postings Preparation
- Attribution Analysis including adjustments, individual assessments, and recoveries
The Workflow
The primary feature of SAS Allowance for Credit Loss, the workflow, supports user analysis, centralizes access to data, models, and scenarios for a specific time period. Below is a screen capture of what the workflow looks like within the solution:
Select any image to see a larger version.
Mobile users: To view the images, select the "Full" version at the bottom of the page.
A cycle represents the expected credit loss activities that are conducted for a given time period under a specific set of risk scenarios. A cycle is generally created by a solution administrator and the cycle's associated workflow is started by the responsible party that claims the initial task.
SAS Allowance for Credit Loss, the latest and greatest version of the CECL solution, offers an upgraded workflow process, prebuilt rule sets and templates, and it's customizable which enables the user to fit the solution to their specific business and organizational needs. Users can appreciate its simplicity and enhanced capabilities, making the execution of tasks within the workflow process smoother and more efficient. The improved user interface is friendlier and requires little to no-code to function. In summary, this solution update brings fresh, extended functionality, cutting-edge technology, and full support to businesses with their CECL/IFRS 9 standard help.
To request a demo to start exploring SAS Allowance for Credit Loss, click here.
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