Run Management

OFS Loan Loss Forecasting and Provisioning application support two sequential runs, Stage Determination and Allowance Calculation, that are seeded within the application to support the Expected Credit Loss, Allowance, and Provision, calculation as per the IFRS 9 guidelines. The Stage Determination run starts with the data population subprocesses to obtain the data required for Stage Determination. After this, the reclassification subprocess is executed to convert non-standard or external data formats to standard or internal data formats. The final stage is to evaluate the change in credit risk and macroeconomic factors to determine the stage at an account level granularity with the stage determination subprocess. Upon successful execution of the stage determination run, the application provides an option for the manual reclassification of the stages assigned to accounts, based on various parameters.

Upon completion of the manual reclassification of stages, the application obtains the additional data required for ECL calculation. The Cash Flow and Forward Exposure subprocesses along with the Probability of Default calculation are performed and the ECL amount is calculated. Separate processes are applicable for the Provision Matrix and Specific provision methods. The application also displays the execution status of the Run through the UI. For more details, see the Process Modelling Framework section. Upon successful execution, the outputs include but are not limited to, Expected Credit Loss, Allowance, Provision, Effective interest rate, and so on are available for reporting. For detailed information on using the Run Management feature, see the Run Management Section in the Oracle Financial Services Asset Liability Management (OFS ALM) User Guide.