Much has been written about the impact accounting standards IFRS 9 Financial Instruments and current expected credit losses (CECL) will have on a financial institution. Much of this focuses on the blurring of boundaries between the responsibilities of risk and finance functions.

Without doubt, the first challenge for any finance department is the move from a backwards looking view on most financial statements to a forward looking view. The major concern is moving from an incurred loss model to an expected loss model and, by extension, the impact on the performance and business of the financial institution.