Riskweise's IFRS 9 ECL implementation service builds end-to-end Expected Credit Loss frameworks for GCC banks, NBFCs and fintechs — covering PD, LGD and EAD modelling, staging logic with SICR triggers, macroeconomic overlay with multi-scenario probability weighting, and management overlay governance.
Every model is delivered as a fully-editable Excel artefact (with optional Python/SQL upgrade path) accompanied by methodology papers, parameter tables, validation evidence, and Board-ready reporting templates. Aligned with CBUAE, SAMA, CBB, QCB, CBK and CBO staging expectations.
Statistical and expert-based models calibrated to portfolio performance, rating migration and collateral recovery. Retail scorecards, corporate through-the-cycle PDs, and segment-specific LGD/EAD with cure rate adjustments and CCF estimation for off-balance sheet exposures.
Definition of provisioning logic, staging thresholds (SICR triggers), write-off policy and management overlay governance. Aligned with IFRS 9 and the supervisory expectations of every GCC central bank — including CBUAE Model Management Standards.
Integration of forward-looking variables and probability-weighted scenarios calibrated to GCC macro context — GDP, unemployment, oil price, real estate indices. Multi-scenario design with explicit governance around weight assignment and override triggers.
Differentiation by asset class, credit quality, and behavioural patterns. Stage 1/2/3 migration logic, backstop criteria, cure rate definitions and staging override governance documented end-to-end for audit traceability.
A full IFRS 9 ECL implementation covers PD, LGD and EAD models for each portfolio segment; staging policy with SICR triggers; macroeconomic overlay with multi-scenario probability weighting; management overlay governance; the ECL computation engine itself; documentation packs ready for model validation and external audit; and Board / audit committee reporting templates. Riskweise delivers all of these as a single integrated package, with the ECL engine as a fully-editable Excel artefact.
GCC retail and SME books often have low historical default frequency, which makes pure statistical PD calibration unstable. Riskweise uses a hybrid approach: statistical models where data permits, expert-judgement-augmented scorecards where it does not, and external benchmarks where appropriate. We document every assumption, rationale, and sensitivity — making the resulting models defensible under regulator review and external audit. The methodology paper accompanying delivery is the key artefact regulators look at.
IFRS 9 itself prescribes the principle but not the operational triggers, so each central bank has developed its own supervisory expectations. CBUAE, SAMA, CBB, QCB, CBK and CBO each have nuances around backstops, qualitative triggers, days-past-due thresholds, and override governance. Riskweise calibrates the staging policy to your home regulator while ensuring the framework is portable enough for cross-border subsidiaries.
For a mid-sized institution with reasonable data quality, a full IFRS 9 ECL implementation takes 12-16 weeks from kickoff to a working model and signed-off methodology paper. NBFCs and fintechs with simpler portfolios can move faster (6-10 weeks). Major banks with multi-portfolio complexity, cross-border consolidation, or significant data remediation needs typically run 16-24 weeks. The ECL Engine product accelerates this materially — see the Tools page.
Fully editable. Every model Riskweise delivers is an open Excel artefact with no locked formulas, no proprietary platforms, no licence fees, and no ongoing dependency on Riskweise. The IP and methodology belong entirely to the client. This is one of the things that materially differentiates Riskweise from major audit firm engagements, where the model is often delivered as a black box that the client cannot modify without further partner-rate engagement.
We design a three-scenario framework (typically Good / Base / Bad) calibrated to GCC macro context — GDP, unemployment, oil price, real estate indices, and any sector-specific drivers. Scenario weights are governed by a documented committee process with explicit override triggers. The macro overlay flows directly into the ECL engine as scenario-weighted probability outputs, with full audit trail from assumption to provision impact.
We respond within one business day. No agency-style discovery process — straight to scope, fit, and what you actually need.
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