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	Configure/Load Macro Economic Variables and Sustainability Variables	Create the dimension members and define the mandatory attributes of the corresponding members.
6	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.
7	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.
8	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.
9	Currency and currency exchange rates	Activate the applicable currencies from the out-of-the-box provided currency list.
10	Configure the Modelling set	Configure the modelling set for the required legal entity and organization unit.
11	Create additional Economic Scenarios	Create Economic Scenario members by using the Economic Scenario via the Dimension Management UI.
12	Configure the Economic Scenario Rules	Configure the Economic Scenario Rule and define the weightages for each economic scenarios.
13	Configure the Rating Mapping Rules	Configure the Rating Mapping Rules to define multiple rating preferences and External to Internal Rating mappings.
14	Configure the Stage Determination Rules	Configure the Stage Determination Rules.
15	Configure the Curing Rules	Configure the Curing Rules.
16	Configure the Account Classification Rules	Configure the Account Classification Rules.
17	Configure the Term Structure Rules	Configure the Term Structure rules for the PD, LGD, and CCF Term Structures and inputs required for each term.
18	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.
19	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.
20	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.
21	Configure the Amortization Rules	Configure the Amortization Rules.
22	Configure the ECL and Amortization Process	Configure ECL Amortization Process and define ECL method for each product and customer type.
23	Configure Attribution Analysis Process	Configure Attribution Analysis Process by selecting the ECL process for which attribution analysis is required.
24	Define the Cashflow Edit Rules (Optional)	Define cashflow edit rules for validating and cleansing Instrument Tables.
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 transaction data	Load the detail transaction data from the source files by using Data File Adminstration and Operation and Processes-Scheduler UI.
4	Load the 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	Load Observed Default Rate (Required for Cyclical Factor Model)	Load historical observed default rate on or before the First Execution Date.
9	Load Historical and Forecasted Macro Economic & Sustainability variables	Load Historical Macro Economic variable data at the Country/Region granularity. Load the historical sustainability variable data at the Country/Region or at the Account level granularity.
10	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.
11	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 Assessment Models
1	Portfolio Rules	Define a portfolio for which the risk assessment model needs to be executed using by navigating to Maintenance, then ECL Rules, and then Portfolio Rules.
2	Cyclical Factors Rules	Create a cyclical factor with the required cyclical factor values for the future time horizon by navigating to Models, then PD Models, and then Cyclical Factors Rules.
3	Cyclical Factors Models	Create the cyclical factor model definition that will predict the cyclical factors for the defined prediction period and the same can be used in the PD model definition.
4	PD Model Process	Define the required PD model process definition navigating to Models, then PD Models, and then PD Model Processes. In the PD Model, users can map either Cyclical Factors Rules or Cyclical Factors Models. Running the Cyclical Factors Models prediction is a prerequisite before mapping it to the PD Model.
5	Configure or update Risk Factor Assignment Rules	Configure or update the existing risk factor assignment rules and define the required PD model processes that need to be used for each product and customer Types.
Process Executions
1	Cashflow Edit Process (Optional)	Users can define the Cashflow Edit process to run the already defined Cashflow Edit Rules.
2	Execute Cyclical Factors Models	Execute the Cyclical Factors Models.
3	Execute PD Model Process (Optional)	Execute PD Model Process.
4	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.
5	Execute the staging and account classification process	Execute the staging and account classification process from Operation And Processes-Scheduler > Staging and Account Classification Process UI or Operation And Processes > Scheduler > Scheduler UI.
6	Stage and Classification Reassignment (Optional)	Stage and Classification Reassignment using Maker and Checker UI.
7	Execute the ECL and Amortization Process	Execute the ECL and Amortization Process.
8	Execute Attribution Analysis Process	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	Multidimensional ECL Reports	This is non-hierarchical report allows users to drill-down through the following path: Legal Entity > Organization Unit > Product > Customer Type > Account. The report presents the final ECL figures as per the specified date.
10	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.
11	Disclosure Report	The 35H Report is available based on the Attribution Analysis.
12	PD Model Reports	This reports provide the PD output in the below form: Through the cycle (TTC) PD- Cumulative Through the cycle (TTC) PD- Conditional Point In Time (PIT) PD- Conditional (Smoothed) Point In Time (PIT) PD- Cumulative (Smoothed)
13	Cyclical Factors Model Reports	Cyclical Factor Model Reports are in three forms: In-Application Report: In-application reports are available after executing a model development run. These reports allow users to compare results across different model versions. Users can evaluate key metrics such as Merton R, essential statistical parameters for model training, testing, and the complete data set. Additionally, the reports enable users to assess the significance of independent variables, p-values, and other relevant factors. After conducting these comparisons, users can finalize the preferred model version, which will then be used for predictions. Model Explain Ability Report: The model explain ability report, available in the HTML format, is generated after the execution of both model development and prediction runs. This report offers a comprehensive overview of the model's inputs, processes, and outputs, providing detailed insights into the underlying data, feature engineering choices, and overall model behavior. Data Visualization (DV) Report: The DV report is available only after the model prediction run. It presents key statistical parameters such as R-squared, MAE, MSE, and RMSE for model training, model testing, complete data set training, and Out of Time (OOT) testing. This data is valuable for model monitoring. The report also displays predicted values of cyclical factors across different macroeconomic scenarios.

Note:

For technical details, see the Oracle Financial Services IFRS 9 Solution Cloud Service MOS documents.