From portfolio segmentation to Monte Carlo simulation. AERA handles the full ECL lifecycle — staging, PD/LGD/EAD modeling, forward-looking macro scenarios, provision matrix, sensitivity analysis, and disclosure-ready output.
Evaluate Significant Increase in Credit Risk across your portfolio using configurable triggers — rating migration, days past due, watchlist inclusion, sector stress indicators. Manual override with mandatory justification and full audit trail.
The simplified approach for trade receivables per IFRS 9.5.5.15 — configure aging buckets, historical loss rates, and forward-looking adjustments. Automatic calculation of lifetime ECL by bucket with visual coverage analysis.
Replace discrete 3-scenario weighting with a full probability distribution. 10,000 simulations conditioning PD on macro variables (GDP growth, unemployment, credit spreads) produce P10/P50/P90 confidence intervals on the total ECL.
Understand which macro variables drive your ECL the most. Tornado chart ranks drivers by impact magnitude — GDP growth, unemployment rate, house price index, credit spread — showing upside and downside swings on total provision.
Understand exactly what drove your ECL change. The waterfall bridge decomposes movement into new originations, derecognitions, stage migrations, parameter updates, model changes, and FX effects — meeting IFRS 7.35H disclosure requirements.
Model the three pillars of ECL: Probability of Default from rating transition matrices or roll-rate analysis, Loss Given Default calibrated to collateral and recovery data, and Exposure at Default with credit conversion factors for off-balance items.
Generate all required disclosure tables: ECL reconciliation by stage, credit quality by risk grade, maturity analysis of gross carrying amounts, and sensitivity disclosures — in auditor-ready format with full source traceability.
No forms, no sales funnel. Just a conversation about what AERA can do for your credit risk management.