Overview

OFS Loan Loss Forecasting and Provisioning application feature a set of work-flow based User Interfaces that enable financial institutions to compute various additional reserves and then adjust the computed ECL values, ECL computed using various methodologies for each account.

The steps in this process are the following:

• Create Factors under different reserve types and define the purpose of these factors.
• For any given period, create a list of applicable factors.
• Select the segments or portfolios for which each of these factors is applicable and assign the values, either as a percentage or an absolute value, for each Factor-Segment combination and perform what-if analysis by doing a test compute of the reserve value based on the assigned values.
• Send the period-specific factor-segment definitions (individually) for approval.
• Go through the Workflow process to approve or reject these factor-segment definitions.
• Once approved, execute the adjustment process to compute the additional reserves for each factor-segment combination and adjust the expected credit loss values at the segment (aggregated) level.