In today’s tightly regulated financial environment, ensuring that your credit risk models meet both Basel standards and IFRS 9 accounting requirements is crucial. Peaks2Tails offers a robust training ecosystem to help your models hit the mark—so let’s explore what compliance means and how their programs can help.

✅ What Does Basel Compliance Mean?

Basel regulations (particularly Basel II and III) are designed to ensure banks hold sufficient capital buffers against credit, market, and operational risks.

Under the IRB (Internal Ratings-Based) approach, banks estimate:

  • PD (Probability of Default)
  • LGD (Loss Given Default)
  • EAD (Exposure at Default)

These must be robust, validated, and stress-tested. Peaks2Tails’ program covers:

  • RWA & capital ratios,
  • Vasicek formula implementation,
  • Full Basel IRB approaches via Excel/Python sessions

📘 What Compliance with IFRS 9 Entails

IFRS 9 requires forward-looking Expected Credit Loss (ECL) models:

  • Calculate 12-month PD for Stage 1 exposures and Lifetime PD for higher-risk stages.
  • Implement staging frameworks (Stages 1–3) to trigger provisioning shifts.
  • Factor in forward-looking economic scenarios and transition dynamics.

Peaks2Tails educates on:

  • TTC vs PIT PD conversion,
  • Probability calibrations (Z-score shifts, log‑odds),
  • PIT LGD and EAD term structures,
  • Wholesale credit transition matrices generation

🧰 Why Integrated Compliance Matters

Bridging Basel’s risk sensitivity and IFRS 9’s accounting perspectives enables you to:

  • Achieve efficient capital allocation and reporting coherence.
  • Maintain robust models that withstand regulatory audits.
  • Communicate clear, defensible disclosures around capital vs provisioning.

🚀 How Peaks2Tails Prepares You

Peaks2Tails offers:

  • A 225+ hour bootcamp blending Excel and Python for building compliant PD, LGD, EAD models
  • Deep dives into model building: scorecards, vintage/loss-rate analysis, and stress testing
  • Basel-focused modules: RWA, Vasicek formulas, IRB regs
  • IFRS 9 modules: staging, PIT calibration, PD-LGD-EAD modeling
  • Real-world case studies, hands‑on exercises, and a supportive D‑Forum for ongoing doubt resolution

🎓 Who Should Enrol?

Ideal candidates include:

  • Credit/risk professionals seeking to align with Basel & IFRS 9 frameworks
  • Finance or audit teams wanting hands-on proficiency in Excel, Python, and live coding
  • Students or practitioners preparing for qualifications like CFA, FRM, GARP, or looking to upskill

📝 Conclusion

To confidently affirm “My credit risk model is Basel and IFRS 9 compliant,” your PD-LGD-EAD systems must be:

  • Accurate and validated
  • Aligned with IRB and staging rules
  • Able to calculate forward‑looking ECLs and capital needs

Peaks2Tails offers a one-stop, practical training ecosystem—and its focus on both regulatory regimes ensures you learn how to build, interpret, and defend models that stand up to scrutiny.

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