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IFRS 9, Credit Risk and the Doberman Affect

We are at the eleventh hour, with the onset of IFRS 9 due in less than 9 months. Banks are still fiddling about and debating how to calculate the impact. Some are even using archaic methods to capture true credit risk. Guess what, come the
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IFRS 9 Solutions: did you pay too much for yours?

Now that we are nearing D-Day, and panic has started to set in, we wonder if some of you are tempted to buy familiar named solutions for IFRS 9 and pay too much for what you get. Not only would you expose yourselves to unexpected
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The Pitfalls of Applying IFRS 9 in Credit Risk

With the finalization of our work on the IFRS 9 module in our Credit Risk System, it has become very apparent that the whole concept of IFRS 9, whilst is a good thing, leaves many questions unanswered. We hope to cover some of these in
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The impact of IFRS 9 on Credit Risk – part 2

Over the past 13 years whilst selling our Credit Risk System and our Road to Basel Program, I was talking to bankers who lived mainly in the world of Standardize Methodology, where risk was measured by an excel sheet, where collateral mattered, and where essentially
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Are you ready for IFRS 9 impact on Credit Risk?

This is now the hottest topic amongst credit risk officers: how to comply with the new rules. We already reported on the tsunami of the Basel Accords back in 2004. Now it seems the full effect is being felt.
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Are Saudi companies over-valued? Corporate Finance view

Of the 55 listed Saudi companies chosen for this survey with a total capitalization of SAR 989 million, and by using a simple perpetuity calculation, it seems that their Enterprise Values (EV) reaches only SAR 72 million. In other words, the portfolio was over-valued by
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How significant were Mobily’s accounting errors: Credit Risk

On 3 November 2014, Mobily disclosed financial irregularities in its accounting practices. As a result, its share price dropped 30 percent, and its CEO was recently suspended. This disclosure also affected the reputation of Etisalat, the UAE telecom operator who owns 27 percent of the
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How to Detect and Manage Fraud in Credit Risk

Fraud plays a role in many aspects of a bank’s credit risk environment; and needs to be detected and managed closely. Following my article on Name Lending, a friend of mine pointed out that in many cases, fraud also plays a role in confusing the
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How to Manage Credit Risk in Name Lending

It is fascinating that in today’s quest for data to make better decisions, banks still use only three out of 177 credit risk criteria to make a credit  decision.
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Why is Suez Cement’s Credit Risk so low?

This is the second of our analysis on Egyptian companies series, and another one that has a low risk rating of 3.39 (using 6 Sigma’s Credit Risk System). Another investment grade company par excellence, what we consider at 6 Sigma as Category 1 company from
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