Solutions / IFRS 9 ECL
Enterprise SaaS · IFRS 9 · Expected Credit Loss

IFRS 9 expected credit loss,
engineered for the enterprise.

Nizor 9 is Finspera 21's IFRS 9 ECL platform, one auditable system for staging and SICR, PD / LGD / EAD modelling, forward-looking macroeconomic scenarios, provision movement and regulatory reporting. Built by practitioners for banks, NBFIs and finance teams that need impairment numbers they can defend.

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Nizor 9 IFRS 9 ECL dashboard, provision, stage distribution and ECL trend
PD Migration Matrices· LGD Modelling· EAD & CCF· Stage 1 / 2 / 3· SICR Assessment· 12-Month & Lifetime ECL· Forward-Looking Macro· Scenario Weighting· Provision Movement· Collateral & Haircuts· Management Overlays· SBP R-8 Reporting· Immutable Audit Trail· REST API· PD Migration Matrices· LGD Modelling· EAD & CCF· Stage 1 / 2 / 3· Forward-Looking Macro· Provision Movement·
PD · LGD · EAD
Three-component model
12M & Lifetime
ECL horizons
Stage 1 / 2 / 3
Automated staging
Base · Opt · Pess
Weighted scenarios
Portfolio
Batch ECL runs
Full log
Immutable audit trail
Impairment under IFRS 9 is a data and modelling problem. We built the system that solves it.

IFRS 9 replaced the incurred-loss model of IAS 39 with a forward-looking expected credit loss model. Every financial asset measured at amortised cost or FVOCI carries a loss allowance, recognised from day one, updated every reporting date, and reflecting reasonable and supportable forward-looking information. For most lenders, that means probability-weighted estimates of default across an entire portfolio, refreshed each quarter.

Spreadsheets do not scale to that. They break under version control, resist audit, and hide the judgement behind the number. Nizor 9 is the system of record for your ECL: it holds the portfolio, applies the staging rules, runs the PD / LGD / EAD models, weights the macroeconomic scenarios, and produces the provision, the movement and the disclosures, with every input, assumption and run captured for your auditors and regulator.

How ECL is calculated

From portfolio data to provision, in one traceable pipeline.

Nizor 9 runs the full IFRS 9 chain for every facility, every reporting date, with each step logged and reproducible.

1

Ingest & validate

Load the loan book by template or API. Data quality checks flag missing fields, stale valuations and outliers before anything runs.

2

Stage & SICR

Each exposure is placed in Stage 1, 2 or 3 using DPD backstops, rating migration and qualitative triggers.

3

PD · LGD · EAD

Point-in-time PD, collateral-based LGD and EAD (including undrawn CCF) are computed per facility.

4

Weight scenarios

Base, optimistic and pessimistic macro paths are probability-weighted into a single expected loss.

5

Provision & disclose

ECL is aggregated, the movement is reconciled, and journals, notes and regulatory returns are generated.

ECL = Σ PD × LGD × EAD, discounted to present value

Computed over a 12-month horizon for Stage 1 and over the lifetime of the exposure for Stages 2 and 3, then probability-weighted across macroeconomic scenarios and adjusted for any documented management overlay.

01
Portfolio & Staging

Every facility, staged and measured, in one view.

The portfolio is the heart of the platform. Each facility carries its stage, outstanding, EAD, 12-month PD, LGD, ECL and days-past-due, filterable by segment, portfolio and stage, and exportable for review. Staging is applied consistently and transparently, so an auditor can trace any allowance back to the exposure that produced it.

  • Facility-level ECL with PD, LGD, EAD and DPD on every row
  • Automatic Stage 1 / 2 / 3 classification with override and audit note
  • Corporate, retail and SME portfolios segmented and reported separately
  • Coverage ratios and stage distribution monitored at portfolio level
  • One-click export for review, audit and board reporting
Facility-level portfolio with stage, EAD, PD, LGD and ECL per loan

Three-Stage ECL Model

Automated stage allocation with SICR detection.

Stage 1

Performing Assets

12-month ECL
  • No SICR since initial recognition
  • Low credit risk
  • 12-month forward-looking PD
Stage 2

Underperforming Assets

Lifetime ECL
  • SICR identified
  • Not credit-impaired
  • Lifetime forward-looking PD
Stage 3

Credit-Impaired Assets

Lifetime ECL
  • Objective evidence of impairment
  • 90+ days past due
  • Individual assessment
SICR Indicators
30+ days past due Downgrade in credit rating Forbearance measures Significant changes in collateral
What-if analysis, PD/LGD shocks and macro drivers with ECL impact by stage
02
Forward-Looking & What-If

Macroeconomics, built into the number.

IFRS 9 requires reasonable and supportable forward-looking information. Nizor 9 links your point-in-time PDs to macroeconomic variables, GDP, inflation, the policy rate, KIBOR, exchange rate, and weights base, optimistic and pessimistic scenarios into the allowance. The what-if console lets you shock any driver and see the ECL impact by stage before you commit, so sensitivity analysis for the audit committee is a slider, not a rebuild.

  • Macroeconomic variable selection with forward-looking PD adjustment
  • Probability-weighted Base / Optimistic / Pessimistic scenarios
  • Live PD, LGD and macro shocks with instant ECL-by-stage impact
  • Baseline vs shocked comparison for sensitivity disclosure
  • Scenario weights and rationale captured for audit
03
Provision Movement

The movement that explains itself.

Auditors and regulators want to know why the allowance moved. Nizor 9 builds the ECL movement waterfall automatically, reconciling opening to closing provision across new assets, derecognitions, stage transfers, model recalibrations, macroeconomic changes, FX, recoveries and management overlays. Every line is traceable to the facilities and assumptions behind it.

  • Opening-to-closing ECL reconciliation for the period
  • Movement split: new assets, derecognitions and repayments
  • Stage-transfer impact (Stage 1→2, 2→3 and cures)
  • Model recalibration, macro and FX drivers isolated
  • Management overlay tracked as a separate, documented line
ECL movement waterfall, opening to closing provision reconciliation
Collateral management, market value, forced-sale value, haircut and net realisable value
04
Collateral & LGD

Loss given default, grounded in real security.

LGD is where recoveries live. Nizor 9 holds a full collateral register, property, machinery, cash and guarantees, with market value, forced-sale value, haircut, charge type and valuation date. Net realisable value flows straight into the LGD, so secured and unsecured exposures are treated correctly and every recovery assumption is documented and dated.

  • Collateral register with market and forced-sale valuations
  • Configurable haircuts, charge ranking and coverage analysis
  • Net realisable value feeding secured LGD by facility
  • Secured vs unsecured segmentation with separate LGD treatment
  • Valuer, document reference and valuation date on every record
Technical methodology

Statistically rigorous, and fully explainable.

Nizor 9 is built on transparent, documented modelling. Nothing is a black box: every parameter can be traced to its source data, calibration and assumption.

01

PD, Probability of Default

Through-the-cycle PDs are built from multi-year rating migration matrices, then converted to point-in-time and projected under each macro scenario using a documented regression.

02

LGD, Loss Given Default

Collateral-based and workout LGDs, net of realisable security value and cure rates, segmented by secured and unsecured exposure.

03

EAD, Exposure at Default

Drawn balances plus a credit conversion factor on undrawn commitments, with amortisation and prepayment behaviour reflected over the horizon.

04

SICR & staging

Quantitative thresholds, the 30-days-past-due presumption and qualitative triggers, with a rebuttable low-credit-risk exemption where appropriate.

05

Macro & scenarios

Forward-looking variable selection and probability-weighted scenarios, so the allowance reflects the outlook, not just the past.

06

Overlays & governance

Management adjustments captured as explicit, documented overlays, visible in the movement and defensible under challenge.

Nizor 9 dashboard, enterprise ECL overview
Enterprise ready

Built for regulated institutions.

Nizor 9 is designed for the governance, security and auditability that banks and NBFIs operate under, so the platform stands up to model validation, internal audit and the regulator.

Immutable audit trail

Every data load, model run and parameter change is logged with user, timestamp and value, tamper-evident and exportable.

REST API

Programmatic portfolio uploads, ECL runs and result retrieval that integrate with your core banking and data warehouse.

Role-based access

Separate modeller, reviewer and approver roles with segregation of duties enforced at the platform level.

Regulatory reporting

Structured returns and disclosure packs, including SBP R-8-style reporting and IFRS 7 credit-risk notes.

Getting started

From data to first ECL run in weeks, not quarters.

1

Onboard the book

Map your portfolio, collateral and historical data with our templates and validator, Finspera 21's IFRS 9 specialists alongside you.

2

Configure & calibrate

Set staging rules, PD/LGD/EAD parameters, macro variables and scenario weights to your policy.

3

Validate

Reconcile a parallel run against your current numbers and document the methodology for audit.

4

Go live

Run each reporting date at the click of a button, provision, movement, disclosures and returns generated together.

Why Nizor 9

Advisory and technology, from one team.

01

Built by IFRS 9 practitioners

The people who implement the standard built the platform. Advice and tooling come from the same team, so the model matches your policy, not the other way round.

02

Defensible by design

Full methodology documentation, model validation outputs and a complete audit trail are generated automatically, cutting ECL audit cycles and removing spreadsheet risk.

03

Made for finance teams

Designed for accountants and credit-risk professionals, not quants. Clear inputs, explainable outputs, and a what-if console that turns sensitivity analysis into a slider.

Questions

Frequently asked.

Can Nizor 9 fit our existing IFRS 9 policy and models?
Yes. Staging rules, PD/LGD/EAD parameters, macroeconomic variables and scenario weights are all configurable to your approved methodology. Where you already have models, we calibrate the platform to reproduce them; where you don't, our specialists build them with you.
Which portfolios does it cover?
Corporate, SME and retail lending, term loans, working capital, trade finance and receivables, segmented and reported separately, with collateral handled per facility.
How does it support the audit?
Every run is reproducible and every input is logged. The platform generates methodology documentation, the provision movement reconciliation, sensitivity analysis and IFRS 7 disclosures, the evidence your auditor asks for, packaged automatically.
Can it integrate with our core banking system?
Yes, via templated uploads or the REST API, so portfolio data flows in and ECL results flow back to your general ledger and reporting stack.
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Service

IFRS Implementation & Consultation

The team that writes your IFRS 9 policy and builds the models the platform runs, accounting and tooling in one engagement.

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Taxation Services

The tax treatment of impairment provisions and their movement, handled alongside the accounting.

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Our thinking

Briefings on IFRS, ESG and tax from the specialists who advise on them.

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See it in action

See Nizor 9 run on your portfolio.

Request a demo and our team will walk you through staging, modelling and provisioning, using your own data.

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