The Credit Risk Modeling department of De Volksbank faced a challenge: how to implement new regulations, including the new definition of default that form the basis of credit risk models. Having to execute the PD modeling process and the LGD modeling process simultaneously convinced the bank they needed help. “That help came in the form of someone who was ‘one of the few’ able to do both LGD and PD components.”
Switzerland’s Swiss Re is the world’s second largest provider of reinsurance and insurance-related risk products. Traditionally the company insures events that can lead to huge losses, such as natural disasters. Two years ago, this reinsurer decided to further strengthen its payment processes.
We asked Achmea’s Marcel Pels how insurance companies are coping with today’s fast-moving developments in payment traffic. As Manager Back-office Treasury & Cash Management at Achmea, he deals with cash management at the Achmea organisation on a daily basis.
International Financial Reporting Standard 9 (IFRS 9) was announced in 2014 by the International Accounting Standards Board (IASB) as the successor to IAS 39. As of 1 January 2018, this comes into mandatory effect for financial and non-financial organizations. According to Paul Buijze, director of finance and mid-office at FMO, the Dutch development bank, IFRS 9 impacts “almost all processes and systems.” So how is this atypical Dutch bank preparing itself for the new IFRS 9 regulation?
In order to assess their risk management practices, the Dutch Central Bank (DNB) requires all banks to complete an annual Supervisory Review and Evaluation Process (SREP), including capital and liquidity management self-assessments. To calculate the effect of specific stress test scenarios on the balance sheet and profitability, Delta Lloyd Bank asked Zanders to build a stress test model.