Registration Deadline: June 16, 2027

Monitoring provisions, managing stage transitions, and optimizing impaired portfolios: The adoption and full implementation of the IFRS 9 accounting standard have revolutionized banks’ provisioning approaches, requiring a transition from the “incurred loss” model to the “expected credit loss” (ECL) model. In this context, the classification of loans and the management of impaired portfolios—particularly UTP (Unlikely to Pay) and NPL (Non-Performing Loans) exposures—require close collaboration between the Risk Management, Planning and Control, and Credit Operations functions.This course offers a specialized program to understand the impact of IFRS 9 on credit risk assessment processes, analyzing the logic behind impairment calculations, the criteria for migration between the various risk “stages,” and proactive strategies for managing impaired loans to reduce volatility in the bank’s balance sheet.

Date

June 23–24, 2027

Language

Italian

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Registration fee

Adherent Cetif

€950.00 + VAT*

Non-Adherent Cetif

€ 1100.00 + VAT*

*Quota per participant

Discounts and economic benefits

To whom it is addressed

Everyone involved in auditing, compliance, ICT, cybersecurity, and risk management
All parties involved in the credit process

Formative Objectives.

Understand the principles of Expected Credit Loss (ECL) and the factors that determine the calculation of allowances on an individual and collective basis.
Managing Stage Classification (Stages 1, 2, and 3): Understanding the Significant Increase in Credit Risk (SICR) metrics to prevent unwanted "slips" in the portfolio.
Analyzing the Characteristics of UTP and NPL Under IFRS 9

The format

Innovative and effective teaching techniques geared toward the transfer of knowledge and behavior through:

theoretical lectures
moments of consolidation and critical revision of content
Exercises and simulations
use case and benchmark

The Course will be held in. Dual Mode: the participant at the time of registration will be able to communicate the most convenient mode of fruition.

Course Schedule.

The Architecture of IFRS 9, Stage Allocation Logic, and the Trigger for Default
The Three Pillars of IFRS 9 and Their Impact on Bank Financial Statements
Introduction to the Framework: Classification and Measurement, Impairment, and Hedge Accounting.
Tests for classifying financial assets: the Business Model Test and the SPPI Test (Solely Payments of Principal and Interest).
The landmark shift from the incurred loss model to the expected credit loss (ECL) model.
Impact on the balance sheet: earnings volatility and pressure on capital requirements (CET1).
The Stage Allocation Mechanism and the Definition of Default

Management and Valuation of NPLs and UTPs Under IFRS 9 and Banking Supervision
Classification and Assessment of UTP and NPL Positions
Focus on UTPs (Unlikely to Pay): Early warning signs, classification criteria, and challenges in estimating the probability of returning to performing status (cure rate).
Focus on Non-Performing Loans (NPLs): Classification and Valuation Approaches (Analytical-Statistical Approach vs. Scenario-Specific Valuation).
Calculation of the ECL for Stage 3: estimation of recoverable future cash flows, recovery timelines, and discounting at the original effective interest rate (EIR).
The impact of forward-looking data and macroeconomic scenarios (Baseline, Adverse, and Positive scenarios) on value adjustments.
The ECB's Guidelines for Banks on Non-Performing Loans and the Rules on Calendar Provisioning

RISK MANAGEMENT IN THE TRANSITION TO THE IFRS 9 FINANCIAL REPORTING FRAMEWORK: A FOCUS ON NPLs AND UTPs

Course Schedule.