Vienna, February 12-14, 2019

The 12th Annual Banking Credit Risk Management Summit, held in Vienna on February 12-14, 2019, brought to the table topics for discussion ranging from the challenges and issues under IFRS 9, to the new regulations for A-IRB, the latest Basel III finalization changes, the stress testing and innovations in digitization in the credit risk management.

Marcella Antolini, International Markets Director, and Marco Macellari, Management Consulting  Principal, provided an overview of how the recent regulations impacts credit processes and presented CRIF proposal for an integrated management of the parallel work-streams in process & procedure adjustments.

Over the last 3 years, regulatory framework is undergoing through deep evolutions aimed at ensuring greater harmonization of Regulations at European level and consistency of the prudential framework. Such evolution in regulation is increasingly pervasive as affecting more and more processes, among which management of anomalous credit, calculation of value adjustments (provisioning) and review of internal models.

“This element modifies significantly the perspectives for the analysis of the various issues and the extent of the related adjustment path. Banks are forced to delineate such paths very rapidly and in parallel with multiple governance work streams already in place or ready for kick off”, commented Antolini.

“In this regulatory framework the main challenges towards 2020 are:

  • Keep a strategic & integrated vision of credit process, in line with both regulation and day by day credit risk management operation
  • Optimize resource management in order to avoid overlapping, tasks should be assigned as part of a single action plan, removing duplications and conflicts
  • Take advantage of the evolution required by the regulator to review the processes of origination, monitoring and problematic credit management.
  • Create a decision making framewok to prioritize initiatives and clearly address strategic and operational activities”, explained Macellari.

“CRIF value Proposition ranges from an end-to-end support for the implementation of regulatory framework based on best practices and advisory expertise, to a PMO support, orchestrating activities across bank organization and entities for an efficient and effective management of processes and resources”, concluded Antolini.

 

 

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