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ECL calculation tool

ECL calculation tool

Advanced Risk Management, s.r.o. offers a tool for calculation of impairments according to the IFRS 9 standard. The tool enables to perform ECL calculation for Stages 1, 2 and 3 through the portfolio PD/LGD approach, or through the individual approach (based on discounted expected cashflows in several scenarios). The tool enables to calculate ECL for a variety of instruments (loans, guarantees, etc.).

What is it used for

  • calculation of impairments for on-balance and off-balance exposures according to IFRS 9,
  • calculation of 12-month as well as lifetime ECL,
  • calculation of ECL for individual exposures (Stage 1, 2 and 3),
  • consideration of expected cash flow development in several scenarios,
  • cash flow discounting through EIR for a given exposure,
  • ECL stress testing (e.g. what is the impact of increased PD in a selected segment or in the whole portfolio on ECL, etc.),
  • distinction of individual and portfolio approach for calculation of impairments.


Main benefits are:
  • quick calculation of ECL for IFRS 9
  • validation of own ECL calculation
  • quick implementation
  • effective input data control
  • intuitive and easy to use

Who is it for

ECL calculation tool can be utilized by all companies which have to calculate ECL for Stages 1, 2 and 3 according to the IFRS 9 standard.

Presentation of ECL calculation tool

Should you have any questions or would like more information, please do not hesitate to contact us to organize a demonstration of ECL calculation tool’s functionalities.