Avoiding Discrimination in Unstructured Data

An article published by the Wall Street Journal on Jan. 30, 2019  got me thinking about the challenges of using unstructured data in modeling. The article discusses how New York’s Department of Financial Services is allowing life insurers to use social media, as well...

IFRS 9: Evaluating Changes in Credit Risk

Determining whether an unimpaired asset’s credit risk has meaningfully increased since the asset was initially recognized is one of the most consequential issues banks encounter in complying with IFRS 9. Recall the stakes: The expected credit loss for Stage 1 assets...

IFRS 9: Modeling Challenges

Calculating expected credit losses under IFRS 9 is easy. It requires little more than high school algebra to determine the aggregate present value of future cash flows. But it is not easy to ascertain the key components that are used by the basic equation—regardless...