Expected Credit Loss Modelling under IFRS 9 (AF-073) Training Course

Expected Credit Loss Modelling under IFRS 9

The expected credit loss model requires banks, finance companies and many corporates to recognise credit losses earlier, based on forward-looking information rather than…

5 daysClassroom or online

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

The expected credit loss model requires banks, finance companies and many corporates to recognise credit losses earlier, based on forward-looking information rather than waiting for losses to occur. Implementing it well demands a combination of accounting knowledge, credit risk understanding, data management and statistical modelling.

This training course explains the expected credit loss requirements of IFRS 9 and how they are applied in practice. Participants learn the staging approach, the definition of default, significant increase in credit risk, and how probability of default, loss given default and exposure at default are estimated and combined with macroeconomic scenarios.

The course also covers simplified approaches for trade receivables, governance and validation of models, management overlays, disclosures and the audit and regulatory scrutiny that expected credit loss estimates attract.

Course Objectives

By the end of this training course, participants will be able to:

Explain the classification and impairment principles of IFRS 9
Apply the three-stage model and criteria for significant increase in credit risk
Define default and credit-impaired status consistently with risk management
Understand the estimation of probability of default, loss given default and exposure at default
Incorporate forward-looking macroeconomic scenarios into expected credit loss
Apply the simplified approach for trade receivables and contract assets
Establish governance, validation and management overlay processes
Prepare clear expected credit loss disclosures and support audit reviews

Target Audience

This training course is suitable for a wide range of professionals, including:

Financial reporting and accounting professionals in banks and finance companies
Credit risk modellers and analysts
Risk managers and chief risk officers' teams
Corporate accountants managing receivables impairment
Internal and external auditors
Regulators and supervisors
Finance and risk transformation consultants

Training Methodology

The course combines technical explanations with spreadsheet-based modelling exercises, worked staging examples and case studies of disclosure practice. Participants build a simplified expected credit loss model, test scenario sensitivity and discuss governance challenges in small groups.

Target Competencies

IFRS 9 impairment knowledge
Credit risk parameter estimation
Scenario-based loss modelling
Model governance and validation
Financial disclosure preparation
Finance and risk collaboration

Course outline

1Day One: IFRS 9 Framework and Impairment Principles

Why the Impairment Model Changed: Lessons from incurred loss accounting
Classification and Measurement Overview: Business models and cash flow characteristics
Scope of Impairment: Loans, debt securities, receivables and commitments
The General Approach: Twelve-month and lifetime expected losses
Key Concepts: Default, credit-impaired assets and write-offs
Finance and Risk Roles: Data, models and accounting judgement
Case Study: Reviewing an institution's impairment policy

2Day Two: Staging and Significant Increase in Credit Risk

Stage Allocation: Criteria and practical approaches
Quantitative Indicators: Lifetime PD changes and thresholds
Qualitative Indicators: Watch lists, forbearance and sector risks
Backstop Indicators: Days past due presumptions
Transfers Between Stages: Cure periods and movement analysis
Low Credit Risk Exemption: Appropriate use
Practical Exercise: Allocating a loan portfolio to stages

3Day Three: Risk Parameters and Modelling

Probability of Default: Point-in-time and lifetime estimation
Loss Given Default: Collateral, recoveries and cure rates
Exposure at Default: Amortisation, prepayment and credit conversion factors
Discounting and Effective Interest Rates
Data Requirements: History, quality and proxies
Simplified and Provision Matrix Approaches for Receivables
Workshop: Building an expected credit loss calculation

4Day Four: Forward-Looking Information

Macroeconomic Scenarios: Selecting variables and weights
Linking Macro Factors to Credit Parameters: Satellite models
Scenario Probability Weighting: Non-linearity considerations
Management Overlays: When they are justified and how to document them
Sensitivity Analysis: Understanding drivers of provision changes
Stress Events and Uncertainty: Lessons from recent economic shocks
Practical Exercise: Applying scenarios and calculating a weighted provision

5Day Five: Governance, Disclosure and Audit

Model Governance: Ownership, approval and change control
Model Validation and Back-Testing: Assessing performance
Disclosures: Reconciliations, credit risk exposures and judgements
Audit Expectations: Evidence, controls and challenge
Regulatory Interaction: Supervisory views on provisioning
Continuous Improvement: Data, automation and reporting efficiency
Final Exercise: Presenting provision results to an audit committee

Frequently asked questions

How long is the Expected Credit Loss Modelling under IFRS 9 course?

The course runs over 5 days of classroom training, usually Monday to Friday.

When is the next Expected Credit Loss Modelling under IFRS 9 course?

The next public date is 7 - 11 Dec 2026 in Barcelona. There are 49 upcoming dates in total.

Where is this course held?

Upcoming sessions run in Barcelona, Frankfurt, London, Kuala Lumpur, Madrid, Munich, Paris, Rome, Amsterdam, Cape Town, Geneva, Istanbul.

Can I take Expected Credit Loss Modelling under IFRS 9 online?

Yes. Every date can also be joined live online in a virtual classroom with the trainer, for £1,280 per participant. Choose "Live online" in the dates table when you register.

How much does the course cost?

Fees start from £2,250 per delegate, depending on the city. Fees include tuition and course materials.

Do participants receive a certificate?

Yes. Delegates who complete the course receive a London Leadership Management Innovation certificate of completion.

Can this course be delivered in-house for our team?

Yes. LLMI can tailor and deliver this course privately for your organisation at your premises or in one of our training cities.

Course information last updated 14 November 2026.

Expected Credit Loss Modelling under IFRS 9

Course overview

Introduction

Course Objectives

Target Audience

Training Methodology

Target Competencies

Course outline

Dates and fees

Frequently asked questions

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