Clients can now access S&P Global Market Intelligence’s CECL Models through Wolters Kluwer’s award winning integrated Finance, Risk and Reporting platform
S&P Global Market Intelligence, a leading provider of data, research, and analytics, and Wolters Kluwer’s Finance, Risk & Reporting business, are partnering to provide an end-to-end Current Expected Credit Losses (CECL) solution.
S&P Global Market Intelligence’s CECL Models leverage proven methodologies linked to 36 years of default and recovery data to bring an off-the-shelf solution that includes built-in forecasts. Wolters Kluwer’s OneSumX CECL, where the CECL Models are housed, is a leading technology platform where clients such as investors, regulators, and auditors can navigate the CECL process. In June 2018 Chartis Research named Wolters Kluwer a Category Leader in its CECL Technology Solutions report.
When the Financial Accounting Standards Board (FASB) introduced a new impairment model through CECL, it represented a major shift from the existing incurred loss model. Like IFRS 9, financial institutions in U.S. GAAP based countries such as the United States, Israel, Japan (limited), Switzerland (optional), now need to adopt a forward-looking expected loss model. Unlike IFRS 9, CECL permits historical factors to retain a greater role in the process. Additionally, there is a difference in how the results of expected loss calculations are used throughout an organization and in reports to regulators and shareholders. Banks now require an end-to-end solution to ensure compliance with the standard, due to be implemented in 2020.
Claudio Salinardi, Executive Vice President and General Manager of Wolters Kluwer’s Finance, Risk & Reporting business, said, “Those firms impacted by CECL need to act now to ensure they are firmly on the road to compliance. S&P Global Market Intelligence brings deep rooted credit content and methodologies to this exciting partnership. Coupled with Wolters Kluwer’s expertise in integrated finance, risk and reporting this partnership provides an unrivaled opportunity to existing and new clients alike.”
Cristiano Zazzara, Head of Credit Analytics, Global Risk Services, added, “With pending CECL implementation, financial institutions are now tasked with shifting away from the existing incurred loss models and require new ways to effectively navigate through the CECL process. With Wolters Kluwer’s technology, reporting capabilities and experience, combined with S&P Global Market Intelligence’s deep suite of credit content and methodologies, we are excited to partner to provide clients a solution that no other single vendor offers.”
S&P Global Market Intelligence provides industry-leading data and models so clients can meet analytical and operational challenges from evolving industry requirements such as Basel, Solvency II, MiFID II, IFRS 9, and CECL. The company’s Credit Assessment Scorecards and Credit Analytics tools estimate the probability of default and loss given default of private, public, rated, or unrated companies and government entities. These include:
- Scorecards: leveraging robust methodologies to overcome data scarcity for low-default portfolios.
- Credit Analytics: utilizes a large data set of company financial information to statistically analyze credit risk.
- CreditPro: offers an extensive database that provides a strong statistical foundation to assess ratings migration, default and recovery rates across geographies, regions, industries and sectors.
Wolters Kluwer’s Finance, Risk & Reporting business is a global market leader in the provision of integrated regulatory compliance and reporting solutions, supporting regulated financial institutions in meeting their obligations to external regulators and their own boards of directors.
The OneSumX CECL solution leverages Wolters Kluwer’s integrated Finance, Risk and Reporting platform, enabling compliance with all CECL requirements, from data management and governance, to credit risk models, expected credit loss calculations, accounting and disclosures. The credit risk modeling capabilities include historical models such as vintage and loss rate methodologies, adjustments for current conditions through qualitative factors and adjustments for reasonable and supportable forecasts using quantitative overlays and mean reversion techniques. The solution also leverages its state of the art accounting framework with Wolters Kluwer’s Regulatory Update Service (RUS) to apply and maintain all required allowance accounting, producing all FASB mandated disclosures.
To learn more about how S&P Global Market Intelligence is helping clients navigate the regulatory environment, please click here. Wolters Kluwer’s insights on CECL can be found in this dedicated resource center
About Wolters Kluwer Governance, Risk & Compliance
Governance, Risk & Compliance (GRC) is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to ensure compliance with ever-changing regulatory and legal obligations, manage risk, increase efficiency, and produce better business outcomes. GRC offers a portfolio of technology-enabled expert services and solutions focused on legal entity compliance, legal operations management, banking product compliance, and banking regulatory compliance.
Wolters Kluwer N.V. (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. Wolters Kluwer reported 2017 annual revenues of €4.4 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we know that not all information is important—some of it is vital. Accurate, deep and insightful. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.
S&P Global Market Intelligence, a division of S&P Global (NYSE: SPGI), provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/marketintelligence.