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For financial assets with objective evidence of impairment, the Customer Impairment Workbench ensures that specific provision (SP) and lump sum specific provision (LSSP) are dealt with in line with IFRS 9 requirements.

The Customer Impairment Workbench is a modular solution that covers all valuation and accounting requests linked to stage 3 impairment.

As such it 

    • Performs Significance Test and decides, if the financial asset is treated under Specific Provision or Lump Sum Specific Provision
    • Calculates Probability-weighted expected credit losses (pwECL) for financial assets on the basis of estimations of recovery cash flows. For this purpose, various scenarios of estimated recovery cash flows can be defined. Each scenario can consider recoveries of the following recovery types:
      • Collateral Recoveries
      • Irregular Recoveries
      • Regular Recoveries 
      • Lump sum risk provision and specific provision
    • Calculates Risk Provision and Unwinding on individual finnacial asset level

It provides processes and inter-divisional workflows and approval processes for:

    • Capture and maintenance of estimated recoveries and recovery rates
    • Documentation of impairment trigger and other information
    • Simulation and calculation of specific risk provision

The Customer Impairment Workbench makes Impairment Stage 3 transparent, traceable and finally auditable.



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