Best Practice Models for Compliance to the International Financial Reporting Standards (IFRS) in the Alberta Business Environment

The way banks account for potential losses are changing, and financial institutions are proactively adapting existing methodologies and developing new methodologies to remain compliant with regulation. The key ingredient of the myriad of evaluations of banks activities that are required for compliance is risk assessments. The purpose of this research project is to review the best practice risk models and adapt them to the financial profile of the business partner, and to the economic reality in which it operates. Given the importance of the state of the domestic (i.e., provincial) economy for ATB Financial, testing risk measures will be tailored to account for local economic conditions, for the conditions of the Canadian economy, and for the dynamics of global markets, with a focus on energy indicators. Increasing in-house competence in risk assessment is an ongoing process in all leading financial institutions, prodded by the increasing requirements of the regulating authorities. Regulators efforts to decrease aggregate financial instability make stress testing an integral part of risk management for Canadian institutions.

Faculty Supervisor:

Valentina Galvani

Student:

Mohammad Hossain

Partner:

ATB Financial

Discipline:

Economics

Sector:

University:

University of Alberta

Program: