Description

A focused course, tailored for you

Credit Risk Execution Under APRA and IFRS 9

Build the ECL governance layer that makes your methodology statement and staging criteria examination-ready.

The APRA credit risk examination does not start with the model. It starts with the documentation around the model. The methodology statement, the PD calibration narrative, the IFRS 9 staging criteria, the override log, the credit committee challenge evidence. When those artefacts are current and internally consistent, the examination closes quickly. When they are thin or out of date, the information request cycle extends for weeks and findings follow.

$199 one-time

Tailored to your situation. Access within 24 hours. 30-day money-back.

Includes a hand-built implementation playbook delivered alongside course access, generated for your specific situation.

Why this course

Most credit risk teams own a functioning ECL model. The gap is the governance layer: the methodology statement that explains how the model was built and why, the staging criteria document that shows how IFRS 9 significant deterioration is identified, the override log that records who moved a facility and on what evidence, and the credit committee challenge documentation that proves the model signal is reviewed and not just accepted. APRA examiners know where the gap tends to be. They request those artefacts first. When the team cannot produce current, internally consistent versions, the examination window extends and remediation findings accumulate.

What you walk away with

Produce an ECL methodology statement that answers the standard APRA information request without additional clarification rounds.
Document PD, LGD, and EAD models to the standard that second-line validation and external audit accept on first review.
Design IFRS 9 staging criteria and override governance that satisfies both the external auditor and the prudential regulator in the same examination cycle.
Build a quarterly APRA capital reporting workflow that reconciles cleanly to the general ledger in a single working session.
Write credit committee packs and stress test documentation that communicate risk clearly to board-level readers without a translation layer.

The 12 modules

Module 1. ECL Methodology Statement: Building the Governance Foundation

The methodology statement is the first artefact an APRA examiner requests. This module builds it correctly: scope declaration, model choice rationale, data source documentation including limitations, the peer benchmarking section, and the version control discipline that proves the document kept pace with model changes. You produce a methodology statement template validated against actual APRA examination feedback, not a generic academic framework.

Module 2. PD Model Documentation: From Calibration to Challenge Evidence

PD model documentation is where most credit risk teams leave examination gaps. This module covers the calibration narrative showing how historical default rates became through-the-cycle PD estimates, the out-of-sample validation results, the management overlay rationale when model signal diverges from judgment, and the challenge documentation the model owner signs. The deliverable is a model documentation package that second-line risk and APRA can both read without sending clarification questions.

Module 3. LGD and EAD Model Governance: What Examiners Actually Read

LGD and EAD attract scrutiny after a credit cycle turns. This module covers collateral valuation methodology, cure rate assumptions for secured exposures, credit conversion factor selection for off-balance-sheet facilities, and the documentation justifying those assumptions against the portfolio's actual loss history. The artefact is a combined LGD and EAD model note structured to pre-empt the standard examiner question list on assumptions and data inputs.

Module 4. IFRS 9 Staging Design: Criteria, Evidence, and Override Tracking

IFRS 9 staging decisions generate more audit queries than almost any other credit risk artefact. This module covers quantitative backstop criteria, qualitative indicators for significant deterioration, manual override governance including who can move a facility to Stage 2 and on what evidence, and the override log that demonstrates the committee reviewed actual evidence. The staging framework you build here is defensible across both external IFRS 9 audit and the APRA prudential review cycle.

Module 5. APRA APS 112 Capital Requirements: Portfolio Mapping to Risk Weight Buckets

APRA APS 112 maps every credit exposure to a risk weight bucket. This module works through standardised approach risk weight assignments for residential mortgage, commercial property, SME, and corporate exposures, off-balance-sheet credit conversion factors, and eligible collateral recognition rules. You build the portfolio mapping template that converts a general ledger extract into an APS 112-compliant capital calculation the APRA prudential team can audit line by line.

Module 6. APRA APS 113 Advanced IRB: Internal Ratings-Based Approach Documentation

Teams operating under the advanced IRB approval must document what APS 113 requires. This module covers the rating system description, use test evidence proving internal ratings drive actual credit decisions, the annual model performance review process, and ongoing APRA notification obligations when models change materially. The deliverable is an APS 113 compliance checklist mapped to your existing rating system documentation, identifying gaps before the examiner does.

Module 7. Stress Test Design: Scenario Narratives and Portfolio Sensitivity Reports

Stress testing is where credit risk meets board-level governance. This module covers the scenario narrative structure that satisfies both APRA and the board risk committee, top-down and bottom-up reconciliation, portfolio sensitivity output format, and the management action overlay demonstrating genuine risk judgement. The stress test documentation pack you build travels from the credit risk team to the board pack without requiring a translation layer in between.

Module 8. Credit Committee Pack: Pre-Empting the Examiner's Question Set

The credit committee pack is the governance artefact for every material credit decision. This module covers the one-page summary that opens each pack, the risk rating rationale section, the sensitivity analysis exhibit, the covenant monitoring update, and the conditions precedent checklist. The discipline is writing the pack so the committee can form a view before the presenter speaks. The output template also serves as the APRA governance evidence file.

Module 9. Counterparty Exposure and Concentration Reporting: Single-View Build

Single-name and sector concentration arrives on the board agenda with little warning. This module covers counterparty exposure aggregation across loans, derivatives, bonds, and contingents, the large exposure limit framework, intra-day monitoring design for financial counterparties, and the concentration report format the board risk committee reads. You build the reporting layer that lets a credit risk manager answer a concentration question from a single file opened in one working session.

Module 10. Model Validation Documentation: Second-Line Sign-Off Artefacts

Second-line model validation is the check that ECL and capital models are fit for purpose. This module covers the validation report structure, replication test evidence, alternative model comparison section, materiality assessment for model weaknesses, and the sign-off protocol between model development and model validation teams. The documentation discipline ensures validation sign-off is a genuine governance act, not a retrospective paper exercise, which is the distinction APRA examiners test for.

Module 11. Quarterly APRA Capital Reporting: ARF 112 and ARF 113 Workflow

The quarterly APRA statistical reporting suite is a methodology problem as much as a data problem. This module covers the ARF 112 and ARF 113 reconciliation workflow, back-reconciliation to the general ledger and the risk system, the sign-off chain, and the variation commentary the APRA reviewer reads first. The workflow you build converts a four-day quarterly sprint into a repeatable one-day process with clear ownership at each step.

Module 12. Post-Examination Remediation: Turning Findings Into Closed Artefacts

APRA examinations leave findings. This module covers the finding classification protocol, the root-cause analysis template the APRA reviewer expects, the remediation plan format with milestone accountability, and the evidence pack demonstrating genuine closure. The distinction that matters is between a superficial response and a thorough one: model documentation, methodology note, governance minute, and post-implementation review all cited in one place. The output is a remediation pack template and a lessons-learned log you reuse each cycle.

How this addresses your situation

Specific modules that map to what you said you are dealing with.

You are heading into an APRA credit risk review and the ECL methodology documentation is thinner than it should be.

Your PD and LGD models are functioning but the governance layer around them is not examination-ready.

The IFRS 9 staging criteria and override log are inconsistent across portfolios and need to be unified before the next audit cycle.

The credit committee pack template is doing too much work for too many audiences and the APRA governance evidence is embedded inside it but not explicitly structured.

What you get with this course

12 written modules covering ECL methodology governance, APRA APS 112 and APS 113 capital reporting, IFRS 9 staging design, stress test documentation, and credit committee governance.
Downloadable templates for methodology statements, model documentation packages, staging criteria frameworks, APRA ARF reporting workflows, credit committee packs, and post-examination remediation packs.
Hand-built implementation playbook tailored to your portfolio context and the specific APRA review cycle you are navigating.
Access to the Art of Service learning environment provisioned within 24 hours of purchase.

What you will have in hand by Day 1, Week 1, Month 1

Access to all 12 modules within 24 hours of purchase.

Hand-built implementation playbook delivered alongside course access.

Before and after

Before

APRA examiner requests the ECL methodology statement and IFRS 9 staging criteria. The team spends two weeks pulling together documentation that should have been current before the examination opened.

After

The examination information request is answered with a methodology statement, PD documentation package, staging criteria framework, and override log that were built to be examination-ready, not assembled under time pressure.

What happens if you do not address this

Each APRA review cycle that runs without examination-ready governance documentation extends the on-site examination window and generates findings that require formal remediation. A single remediation cycle costs more time and executive visibility than the governance build would have required to complete.

Who it is for

Credit risk managers and senior credit risk analysts at Australian banks, non-bank lenders, and financial holding companies who own the ECL model governance and APRA prudential capital reporting. You have a functioning model but the documentation and governance layer around it is not yet examination-ready. You attend credit committee meetings, manage the APRA relationship on credit risk topics, and understand the gap between what your team currently has on file and what the prudential regulator expects to see.

Who this is NOT for. This course is not for credit analysts building a PD model from scratch for the first time, or for regulatory affairs teams focused on licensing rather than prudential capital. It is built for credit risk managers at regulated financial institutions who already have a functioning model and need the ECL governance documentation and APRA capital reporting workflow to be examination-ready.

How it arrives

Text-based course in the Art of Service learning environment, plus downloadable templates and worked examples for every module, plus the hand-built implementation playbook delivered alongside course access.

Time investment. 6 to 8 hours across the 12 modules, plus implementation time applying the templates to your portfolio's ECL model governance and APRA reporting workflow.

Why $199 is the right number

APRA-focused regulatory training programs typically run two to three days at $2,000 to $5,000 per seat and deliver regulatory frameworks without the specific documentation templates. This course is $199 and delivers the artefacts needed to implement the governance layer, not the theory behind it.

FAQ

Is this course specific to Australian financial services regulation?

Yes. The capital framework modules are built around APRA APS 112 and APS 113. The IFRS 9 staging modules reference the APRA interpretation guidance and the approach reflected in the major Australian bank annual disclosures.

My bank already has a functioning ECL model. Will this course help with the governance layer around it?

That is the primary use case. The course is built for credit risk managers who have a functioning model but need the methodology documentation, validation sign-off structure, IFRS 9 staging governance, and APRA reporting workflow to be examination-ready.

30-day money-back guarantee. If after a week of working through the materials this is not what you needed, reply to the receipt email and a full refund is processed. No questions, no forms.

Within 24 hours your account in the learning environment is provisioned and the tailored implementation playbook is delivered alongside it.