ECL & IFRS 9 Explained — Trade Shield's Approach

Created by Amy Sara Price, Modified on Mon, 25 May at 10:40 PM by Amy Sara Price

Trade Shield  |  Knowledge Centre TRAINING & WEBINARS

ECL & IFRS 9 Explained — Trade Shield's Approach

? 45 min webinar    Watch on YouTube

This webinar walks you through Expected Credit Loss (ECL) and its regulatory framework under IFRS 9 — and shows you exactly how Trade Shield calculates it for your debtor book.

Whether you are a credit manager, financial controller, or part of a team that extends trade credit, this session gives you the knowledge to understand your ECL report, explain it to your auditors, and use it to make smarter credit decisions.

What you will learn

What ECL is and how it is calculated (PD × EAD × LGD) Why IFRS 9 requires a forward-looking approach
The difference between Expected and Unexpected Loss How Basel, TTC and PIT approaches relate to IFRS 9
How GDP, Repo Rate and CPI affect your ECL Trade Shield's step-by-step methodology and Markov Chain model
What Monte Carlo simulation does in the calculation Key terms: ECL, IFRS 9, Basel, PD, EAD, LGD, PIT, TTC, SICR
Watch the Webinar — ECL & IFRS 9 Explained

WEBINAR RECORDING

youtube.com/watch?v=NoxOR20KDFA

ECL & IFRS 9 Explained

Trade Shield's Approach  ·  Approx. 45 min

 ▶  Watch on YouTube 

Can't watch now? Bookmark this article and come back anytime. The webinar is also available in the Moodle and Trade Shield Courses section of the Knowledge Centre.

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Who This Webinar Is For

? Credit Managers

Responsible for debtor book provisioning and IFRS 9 compliance

? Financial Controllers & CFOs

Overseeing financial statement accuracy and audit readiness

? Auditors & Compliance Teams

Reviewing ECL methodology and IFRS 9 disclosures

? New Trade Shield Users

Anyone who wants to understand what the ECL report means and how it is built

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Topics Covered in This Session
1

What is Expected Credit Loss (ECL)?

Definition, the PD × EAD × LGD formula, and why IFRS 9 requires a forward-looking approach instead of incurred-loss accounting.

2

Why ECL Is Important

Financial accuracy, IFRS 9 compliance, proactive risk management, and smarter credit decision-making.

3

Economic Factors: GDP, Repo Rate & CPI

How macroeconomic variables are used to adjust ECL for forward-looking economic conditions.

4

IFRS 9, Basel & TTC Frameworks

How the three frameworks relate — accounting, regulation, and long-term risk modelling — and the difference between PIT and TTC approaches.

5

Expected vs Unexpected Credit Losses

The three classes of credit loss — Expected (ECL provision), Unexpected (Basel capital), and Catastrophic — and who manages each.

6

Monte Carlo Simulation

How Trade Shield uses thousands of simulated economic scenarios to produce a robust, probability-weighted ECL estimate.

7

How Trade Shield Calculates ECL — Step by Step

The 6-step methodology: payment profile collection → risk classification → rollover rates → economic adjustment → LGD → Monte Carlo final output.

8

Risk Drivers & the Arrears-Based Markov Chain

Wholesale models, behavioural and qualitative risk drivers, IFRS 9 Stage transitions, and the forward-looking economic adjustment formula.

ⓘ Tip: A full glossary of ECL terms — including ECL, IFRS 9, Basel, PD, EAD, LGD, PIT, TTC and SICR — is included in the webinar and in the companion article ECL & IFRS 9 Explained — Trade Shield's Approach in the Knowledge Centre.

Download the Presentation Slides
PDF

ECL & IFRS 9 — Webinar Slide Deck

ECL_Expected_Credit_Losses_TS.pdf  ·  17 slides  ·  155 KB

 ↓  Download PDF 

The slide deck covers all 10 topics from the webinar — a useful reference document to keep alongside the recording.

ECL formula & PD, EAD, LGD definitions IFRS 9 Stage transition diagrams
GDP, Repo Rate & CPI impact on ECL Risk drivers, Markov Chain & methodology
Key terms glossary (ECL, PIT, TTC, SICR) Monte Carlo simulation explained

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