Standard models for impairment stages 1 and 2

The mathematical formula for calculating risk provisions is stored in a calculation engine in the solution. This calculation engine can be replaced so that different calculation engines can be used depending on the portfolio in question and the information available on impairment. Exact calculations can be made due to the fact that standard methods can be duplicated and the mathematical formula can be adjusted to meet individual requirements. Micro- and macroeconomic parameters are used for calculating risk provisions while macroeconomic scenarios can be defined in the solution. In this context, combinations of parameters including factors such as gross domestic product, rate of inflation or interest rate levels can be stored.  The solution then calculates the probability of default and the risk provision for these scenarios.