Quick Tour
The following table provides a bird's eye view of the tasks and the order to execute these tasks using the application. Click the links to read the details of each task. You can use the links on this page to help you immediately begin using Oracle Financial Services IFRS 9 Solution Cloud Service.
Table 2-2 Quick Tour
| Application Configuration | ||
| 1 | Configure the application preference and global preference | Configure the Application Preference, and Global Preference by using the Preferences screen. |
| 2 | Configure/load the mandatory dimensions | a. Create a legal entity dimension, members, and hierarchy. |
| b. Create the organization unit dimension members and hierarchy. | ||
| c. Create the product dimension members and hierarchy. | ||
| d. Update or validate the out-of-the-box customer type dimension members. | ||
| 3 | Configure/load the optional dimensions | Create the dimension members and hierarchies (only for key dimensions) |
| 4 | Configure/load the external and Internal ratings | By using the dimension management UI or by using the Dimension Data Loader, create external and internal ratings. |
| 5 | Dimension loader | The Dimension Loader provides the option to load all required dimension members, attributes and hierarchies from a text file instead of creating them via the Dimension Management screen. |
| 6 | Configure the cashflow reference data | a. Define and load the interest rate curves. |
| b. Define and load the economic indicators. | ||
| c. Define and load the holiday calendars. | ||
| 7 | Configure cashflow assumptions | Configure Prepayment Rules. |
| Configure Prepayment Models. | ||
| Configure Payment Patterns. | ||
| Configure Behavior Pattern Rules. | ||
| Configure the forecast rates. | ||
| Configure the reprice patterns. | ||
| Configure the behavior patterns. | ||
| 8 | Currency and currency exchange rates | Activate the applicable currencies from the out-of-the-box provided currency list. |
| 9 | Configure the Modelling set | Configure the modelling set for the required legal entity and organization unit. |
| 10 | Create additional Economic Scenarios | Create Economic Scenario members by using the Economic Scenario via the Dimension Management UI. |
| 11 | Configure the Economic Scenario Rules | Configure the Economic Scenario Rule and define the weightages for each economic scenarios. |
| 12 | Configure the Rating Mapping Rules | Configure the Rating Mapping Rules to define multiple rating preferences and External to Internal Rating mappings. |
| 13 | Configure the Stage Determination Rules | Configure the Stage Determination Rules. |
| 14 | Configure the Curing Rules | Configure the Curing Rules. |
| 15 | Configure the Account Classification Rules | Configure the Account Classification Rules. |
| 16 | Configure the Term Structure Rules | Configure the Term Structure rules for the PD, LGD, and CCF Term Structures and inputs required for each term. |
| 17 | Configure the Provision Matrix Rules | Configure the Provision Matrix Rules and input values for 12 Month and Full Life Provision Rate. This is required if the Provision Matrix or Forward Exposure methods are used for the Expected Credit Loss Calculation. |
| 18 | Configure Risk Factor Assignment Rules | Configure Risk Factor Assignment Rules and define the require term structure to be used for each Product and Customer Types. |
| 19 | Stage determination & Account classification Process | Configure the Stage Determination and Account Classification Process. The Term structure and Provision Rate Assignment Rule mapping is required if the PD , LGD , CCF or Provision Rates are not provided as a download. It is expected to be derived from the PD , LGD , CCF Term Structures and Provision Rates that are provided via the UI. |
| 20 | Configure the Amortization Rules | Configure the Amortization Rules. |
| Inclusion of FVOCI accounts for EIR and Amortization | By default this check box is selected in the Preference UI. This feature can be unchecked. | |
| 21 | Configure the ECL and Amortization Process | Configure ECL Amortization Process and define ECL method for each product and customer type. |
| 22 | Configure Attribution Analysis Process | Configure Attribution Analysis Process by selecting the ECL process for which attribution analysis is required. |
| 23 | Define the Cashflow Edit Rules (Optional) | Define cashflow edit rules for validating and cleansing Instrument Tables. |
| Portfolio Rules (Mandatory only for PD Model) | Define a portfolio for which the risk factor model need to be executed from Maintenance then select ECL Rules, and then select Portfolio Rules. | |
| Data Load | ||
| 1 | Load Instrument data | Load the instrument data from the text file by using the Data File Administration and Operation And Processes-Scheduler UI. |
| 2 | Load the rating data | Load the origination and current external ratings data from the source files by using the Data File Administration and Operation and Processes-Scheduler UI. |
| 3 | Load the transation data | Load the detail transaction data from the source files by using Data File Adminstration and Operation and Processes-Scheduler UI. |
| 4 | Load Mitigant data | Load the mitigant data from the source files by using the Data File Adminstration and Operation and Processes-Scheduler UI. |
| 5 | Load ECL Component data | Load the ECL component data from the source files by using the Data File Adminstration and Operation and Processes-Scheduler UI. |
| 6 | Load Historical Average Transition Movement (Required for Roll Rate method) | Load the Historical Average Transition Movement from the source files by using Data file Administration and Operation And Process-Scheduler UI. |
| 7 | Load Historical Loss Rate (Required for Roll Rate method) | Load the Historical Loss Rate from source files by using Data file Administration and Operation And Process-Scheduler UI. |
| 8 | Data Quality Framework (Optional) | Users can create data quality rules and run the same to validate the data loaded in the staging area before promoting it to the processing data layer. |
| 9 | Data Maintenance Interface (Optional) | Data Maintenance Interface (DMI) helps to design a Data Form in a user-specified format. Further, it allows to perform maintenance activities using the Designed Form. |
| Risk Factors Models (Optional) | ||
| 1 | Cyclical Factors | Create a cyclical factor with required cyclical factor values for future time horizon using Model > PD Models > Cyclical Factor Rules UI. |
| 2 | Configure or update Risk Factor Assignment Rules | Configure or update the existing Risk Factor Assignment Rules and define the require PD Model Process need to be used for each Product and Customer Types. |
| 3 | PD Model Process | Define the required PD model process definition using Model > PD Models > PD Model Processes UI. |
| Process Executions | ||
| 1 | Cashflow Edit Process (Optional) | Users can define the Cashflow Edit process to run the already defined Cashflow Edit Rules. |
| 2 | Execute PD Model Process (Optional) | Execute PD Model Process. |
| 3 | Execute the Interpolation and Extrapolation Batch | Ensure that Bucket Frequency and Maximum Extrapolation Period in Years are defined in the Preference UI before executing the Interpolation and Extrapolation batch. |
| 4 | Execute the Stage Determination and Account Classification Process | Execute the Stage Determination and Account Classification Process from the Operation And Processes > Scheduler > Stage Determination and Account Classification Process UI or the Operation And Processes>Scheduler> Scheduler UI. |
| 5 | Override Stage and Account Clasification(Optional) | Override Stage and Account Classification by using the Override Screen Maker and Override Screen Checker UI. |
| 6 | Execute the ECL and Amortization Process | Execute the ECL and Amortization Process. |
| 7 | Execute Attribution Analysis Process (Mandatory for Attribution Analysis and 35H Reports) | Execute attribution analysis process. |
| Results/Reports | ||
| 1 | Stage Overview Reports | This report depicts the count and percentage of the count of accounts across various stages. |
| 2 | Stage Comparison Reports: Stage Transition Reports | This report provides the count and percentage movement of accounts between two dates. |
| 3 | Stage Comparison Reports: Stage Trends Reports | This report displays the count and percentage of accounts across stages and dates. |
| 4 | Account Classification Overview Reports | This report depicts the count and percentage of the count of accounts across various account classifications. |
| 5 | Amortization Reports | This section details the Amortization reports. These reports also cover important measures like Modification Gain/Loss, Deferred Balances, and Amortization Cost. |
| 6 | Expected Credit Loss Overview Reports | These reports cover the measures like Allowance, Provision, ECL, EAD, and Impairment gain/Loss. These reports also cover the impact of stage reassignment on ECL. |
| 7 | Expected Credit Loss Trends Reports | This report displays the ECL-related measures in percentage and absolute terms across IFRS 9 stages and dates |
| 8 | Expected Credit Loss Detailed Reports | This report displays the number of accounts, Allowances, Provisions and ECL in absolute terms across IFRS 9 stages. This report displays the number of accounts, Total carrying Amount, Total undrawn Amount and Exposure At Default in absolute terms across IFRS 9 stages. |
| 9 | Attribution Analysis Reports | This report display the Attribution Analysis compares the account level ECL of two dates and computes the contribution of any or all factors to the actual change in ECL. Users can see the result of attribution in the chart and tabular reporting formats. |
| 10 | Disclosure Report | The 35H Report is available based on the Attribution Analysis. |
| 11 | PD Model Reports | Two types of reports are available based on the PD
Model:
|