Absolute Expected Loss


Product Overview
Look Around Corners

How We Help You Meet New Guidelines
FASB Current Expected Credit Loss (CECL) has new standards for understanding and provisioning Expected Loss (EL) but doesn't prescribe a specific model.
A simple, precise, and quantitatively sound methodology to meet EL standards is the Probability of Default (PD)/Loss Given Default (LGD) methodology. The simplicity of this quantitative methodology is the conceptual framework of the solution.
The Equifax AbsolutePD® Model employs statistical techniques to estimate likelihood of default providing predictions based on borrower-by-borrower payment histories.
Equifax’s Absolute Expected Loss Model is comprised of three independently developed underlying models. This forward-looking model provides a bottom-up approach based upon the basic foundation of EL as the product of PD and LGD.
Key Benefits
A structured decisioning framework
Spot troubled accounts
Tackle risk earlier
Complement your collections efforts
Know where your risk is
Quantitative precision for CECL

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Avoid the "too little, too late" approach to risk, by taking more informed action earlier.