CRIF sponsored the “11th Annual Banking Credit Risk Management Summit”, organized by Allan Lloyds and held in Vienna from February 13 to 15. Over the three days, the main current topics in the banking sector were discussed, including:
- Spearheading Digitization Innovations in Credit Risk Management
- API Banking through the lens of current challenges in PSD2 practices
- The Future of Credit Risk in Banking with Financial Institutions
- Implementation of a comprehensive Credit Risk Appetite Framework
- IFRS9 or IAS39: Financial Instruments. Comparing gain and loss measurement
- Stress testing in Credit Banking as a process, not an event
- Virtual Fraud proliferation regarding Credit Risk Management
- Significance of upgrading Basel standards: from Basel II to Basel IV
- What is the most effective way for corporations to measure and control counterparty credit risk?
Fabrizio Arboresi, Director of EMEA Markets at CRIF Credit Solutions, was one of the speakers on the third day, giving a presentation on “IFRS9 and NPL guidelines: from regulation to enhanced risk management and processes”. In particular, Arboresi's presentation focused on the main challenges to be faced in relation to NPL/E and collection management, including:
- Advanced early warning system and model to “prevent” new levels of default (IFRS 9, recoverability,…)
- internal vs external processes and partners (i.e. highly-specialized professionals to master legal aspects and credit file analysis)
- NPE/NPL evaluation and “pricing” (which pricing gap?), Bad Bank opportunity issues (which portfolio to consider, Asset value, REV value,…)
- Internal vs external industrialized processes, data storage, updated and controlled data (collateral above all)
