In the complex realm of modern finance, IFRS 9 modelling stands as a critical skill for risk professionals—from credit analysts to quant consultants. As regulatory frameworks evolve and sophisticated models become ubiquitous, the question arises: is IFRS 9 modelling training truly essential today?
1. The Importance of IFRS 9 in Today’s Regulatory Landscape 🏛️
Implemented on January 1, 2018, IFRS 9 introduced a forward-looking expected credit loss (ECL) model, replacing the outdated incurred loss approach (IAS 39). Under IFRS 9:
- Assets are evaluated for staging: 12‑month ECL (Stage 1), lifetime ECL on significant deterioration (Stage 2), and defaulted instruments (Stage 3).
- Modelling requires estimation of Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), and impairment recognition.
For banks and NBFCs, IFRS 9 is more than an accounting standard—it drives provisioning, capital planning, and financial stability.
2. Skills Gap Among Risk Professionals
Despite its importance, many capacity-building programs still focus primarily on Basel norms or CECL, without tackling the intricacies of IFRS 9 staging and ECL computation.
Risk professionals today must understand:
- How to model time-varying PDs (through Z-score shifts, logistic log‑odds, scalars)
- Behavioural models for LGD/EAD
- Rolling vintage and transition matrices for staging under IFRS 9
- Integration with stress testing and regulatory requirements
Without structured training, professionals often struggle to design compliant, dynamic models aligned with evolving economics.
3. How Peaks2Tails Addresses the Gap
Peaks2Tails offers a Credit Risk Modelling Bootcamp that is uniquely tailored to regulatory demands. Highlights include:
- Granular IFRS 9 modules: Transition matrices, staging, PD to PIT conversions, LGD/EAD term structures—all taught with both Excel and Python.
- Regulatory-ready modeling: Covers Basel IRB, CECL, and IFRS 9 implementation end-.
- Hands-on learning ecosystem: Excel animations, Python code examples, graded assignments, and a supportive D‑Forum community.
- Certification & LOR: Demonstrates your capability to employers and clients.
- Experienced trainer: Karan Aggarwal, FRM charterholder, CFA Level‑3, CQF—specialist in risk & IFRS modelling.
4. Real‑World Relevance for Risk Teams
Here’s why IFRS 9 training is indispensable:
| Challenge | How IFRS 9 Training Helps |
|---|---|
| Regulators expect advanced ECL systems | Training shows you how to develop and validate PD/LGD/EAD models, including staging logic |
| Investor scrutiny | Transparent and well-documented impulse-response loss forecasting builds confidence |
| Tech transformation | Transitioning from Excel to Python-heavy modelling requires both coding and domain expertise |
| Strategic portfolio management | Teams prepared to implement IFRS 9 models can better align provisioning and capital buffers |
5. Why Today Is the Right Time
- Regulatory updates are ongoing, with regulators scrutinizing model conservatism and staging criteria.
- Technology shift: Excel alone no longer suffices—Python-driven ECL pipelines are becoming standard.
- Demand for quant‑savvy professionals is surging in credit risk, fintech, and banking.
Without IFRS 9 modelling skills, risk teams risk being left behind.
✅ Final Take
Yes—IFRS 9 modelling training is essential for any risk professional aiming to stay relevant and compliant in today’s dynamic environment. And if you want the full package—IFRS 9, Basel IRB, CECL, plus practical Excel and Python implementation—Peaks2Tails is one of the most comprehensive training platforms available. Their end-to-end ecosystem delivers theory, coding, certification, and support—all designed to bridge the crucial gap between model output and regulatory practice.
If you’re ready to take your credit risk capabilities to the next level, now is the time to invest in IFRS 9 training—your future self (and your risk team) will thank you.