Situation
Our client was applying an Excel based model for calculating its Expected Credit Loss (ECL) provisioning, based on the requirements of IFRS 9 - Financial Instruments. Although functional, the approach was extremely labour intensive. On top of that, there were some design issues and a need to streamline the use of multiple interlinked spreadsheets.
Solution
PwC developed a leading practice workflow design document for the new IFRS 9 model. Through collaborative workshops, we supported the client in the implementation and use of Alteryx, a data analytics and visualization tool as well as provided training to the core team. We also co-developed, with the client, an operational automated workflow, incorporating business logic in line with reporting requirements. In wrapping up, we carried out a comprehensive handover of the Alteryx model to the team responsible for its ongoing use; and we provided support with the review and testing of the model with the client’s external auditors.
Impact
The client adopted an automated IFRS 9 model that streamlined and improved ECL provisioning and replaced a labour-intensive process. The Alteryx model we developed ensured compliance with reporting requirements and reduced the reporting period from approximately 2 weeks to 2 days.
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