JAKARTA, Nov 27, 2017 – (Antara) – Kamakura Corporation, with partner Risk Management Guard Indonesia, successfully conducted a workshop on international financial reporting standards (IFRS) on November 16. The event, attended by more than 170 participants from over 56 banks from Indonesia and overseas, provided a hands-on approach for seamlessly upgrading from IAS39 to IFRS 9.
Implementation challenges, including a detailed approach to computing loan impairment, a comparison between calculating expected credit losses under Basel III and IFRS 9, and practical demonstrations of the Kamakura Risk Manager (KRM) integrated risk product, with special emphasis on IFRS 9, were covered in detail.
A thought-provoking panel discussion on the need for multiple regulations for expected loss, the importance of credit models, the different modelling approaches for various asset classes, and the importance of data in generating default probabilities, also featured.
The event was conducted under the auspices of Bank Indonesia; OJK, the financial services authority of Indonesia; BSMR Indonesia; and LSPP Indonesia. Attendees from India, Japan, Malaysia, China and Singapore as well as Indonesia appreciated the hands-on help, and shared best practices and IFRS insights from around the world. They also benefitted from a demonstration of the Kamakura IFRS 9 module, a part of the KRM Solutions suite.
Suresh Sankaran, Principal Risk Officer of Kamakura Corporation, said, “Complex Standards like IFRS 9 need to be parachuted into developing economies using comprehensive training applications. Only then will concepts like effective interest rates and loan impairment enter management discussions. The seminar was an eye-opener not only to Asset Liability Committee (ALCO) participants, but also to senior functionaries of financial institutions. It clarified the approach banks need to consider for early adoption of the standard.
“The attendee list speaks for itself, and highlights the importance of a practical approach to implementing advanced regulations. The workshop also showcased Kamakura’s ability to serve not just as software providers, but providers of subject-matter expertise. Kamakura plans to leverage the momentum generated by this event to conduct similar conferences and workshops focussed on regulatory best practices.”
Togi Benjamin, Chief Executive Officer, RMG Indonesia said, “We decided to partner with Kamakura Corporation after a careful evaluation of many other software vendors. We are very impressed with Kamakura’s suite of solutions, which are truly unique. Most vendors use spreadsheet-based solutions that are not robust and do not stand the test of time. The Kamakura solutions provide an integrated view of risk and regulation. That means an organisation loads and reconciles the data only once, as opposed to using fragmented solutions. Kamakura’s solution cuts down on implementation time and provides a more nuanced approach for day-to-day decision-making, as well as for regulatory compliance.
“This event also showcased RMG’s credentials as a system integrator and our appreciation of the needs of the marketplace. We plan to offer many more such workshops to enable a better understanding of regulation and to address the need for localised, scalable solutions. RMG is uniquely positioned to serve the needs of regional banks, offering local language support and local regulatory interpretation to make implementation less challenging.”
Dr. Clement Ooi, EVP & Managing Director, Kamakura Corporation, and former Managing Director of Asia Pacific Operations for Fiserv Risk & Compliance, stated, “Kamakura’s IFRS 9 solution is fully compliant with every aspect of the standard and can be used for computing fair valuation, amortised costs, effective interest rates, loan impairment, and hedge effectiveness. It also helps banks generate edge accounting journal entries and provides a portal for customising the metrics.
“Our IFRS 9 solution gives users the ability to bucket probabilities of default into any user-defined time frame. It allows users to select their own methodology for current and forecasted creditworthiness computations.Unlike other products, it provides transparent calculations and an easily auditable set of results that is accepted by many regulatory regimes around the world.
“As part Kamakura’s integrated risk management framework, the IFRS 9 solution enables incisive insight into transaction-level risk. Profit and value management can then be evaluated independently to optimise returns. Kamakura?s solution also offers the unique ability to incorporate user-defined algorithms for loan impairment, providing a much-needed degree of consistency for organisational tools to measure creditworthiness and calculate loss metrics.”
The event was conducted under the auspices of Bank Indonesia (http://www.bi.go.id/id/Default.aspx ); OJK, the financial services authority of Indonesia (http://www.ojk.go.id/en/default.aspx); BSMR Indonesia (http://www.bsmr.org/); and LSPP Indonesia (http://lspp.or.id/).
About Risk Management Guard (RMG) Indonesia
Risk Management Guard is a Jakarta-based consultancy which helps Indonesian financial institutions use best practices and implement programs in compliance with central bank (Bank Indonesia) and Financial Services Authority regulations. Established in 2011, RMG has worked with more than 80 firms, including banks, multi-finance companies, and insurance companies. Current services include help with IFRS 9, Business Continuity Management, Reporting (LBU, SID, and SLIK), risk-based audit, and IRRRB. Please visit http://rmguard.co.id.
About Kamakura Corporation
Founded in 1990, Honolulu-based Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura was named to World Finance magazine’s World Finance 100 by in 2012 and 2017. The company also won Credit magazine’s innovation award for three straight years, including 2010, when it became the only vendor to win two awards.
Kamakura Risk Manager software was first sold commercially in 1993 and is now in version 8.1. It is the first enterprise risk management system that deals with credit risk, asset-liability management, market risk, stress testing, liquidity risk, IFRS/IAS compliance, counterparty credit risk, and capital allocation using a single software solution. The KRIS public firm default service was launched in 2002. The KRIS sovereign default service, the world’s first, was launched in 2008, and the KRIS non-public firm default service was offered starting in 2011.
Kamakura has served more than 330 clients with assets ranging from $1.5 billion to $1.6 trillion. Its risk management products are currently used in 47 countries, including the United States, Canada, Germany, the Netherlands, France, Austria, Switzerland, the United Kingdom, Russia, Ukraine, Eastern Europe, the Middle East, Africa, Singapore, Malaysia, Thailand, Indonesia, Hong Kong, Taiwan, Vietnam, Sri Lanka, Australia, Japan, China, Korea, India, and many other countries in Asia. Please see www.kamakuraco.com.
To follow risk commentary by Kamakura on a daily basis, please follow Kamakura CEO Dr Donald van Deventer (www.twitter.com/dvandeventer), Kamakura President Martin Zorn (www.twitter.com/riskmgrhi), Kamakura Principal Risk Officer Suresh Sankaran (www.twitter.com/sureshkamakura) and Kamakura’s official twitter account (www.twitter.com/KamakuraCo).
Please contact:
Martin Zorn,
President and COO
1-808-791-9888, ext.8700
www.kris-online.com
www.kamakuraco.com
pressroom@kamakuraco.com
