CREDIT RISK ASSESSMENT SERVICES FLIPA Project update Seattle conference Nov. 05, 2003 V. Bert GERLIN

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CREDIT RISK ASSESSMENT SERVICESFLIPA Project
updateSeattle conference Nov. 05, 2003V.
Bert GERLING NCM
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Content

• Introduction
• Why is XBRL-CRAS different?
• Taxonomy overview
• Project overview
• Questions

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Content

• Introduction
• Why is XBRL-CRAS different?
• Taxonomy overview
• Project overview
• Questions

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Who are we?
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The XBRL-CRAS project receives special attention
from XBRL International and other 3rd parties
because CRAS has specificities that other XBRL
projects do not have...
Application
Content

• CRAS members reports information on other
  companies
• XBRL usually used to report financial figures
  about the company

• XBRL is usually used to produce information
• CRAS intends to develop an end-to-end application
  including querying, answering modes,

XBRL - CRAS

• The need to use standard semantic terms through
  code lists is specific to XBRL-CRAS
• XBRL allows the use of code list no technical
  difficulty.

• Phase 1 will recycle the existing business
  requirements which makes CRAS quickly ready to
  start technical implementation

Business Requirements
Business semantic Code Lists
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Even with the support we continuously receive
from XBRL Intl, CRAS still has to manage key
success factors to ensure smooth delivery of the
target
Project Challenges
Key Success Factors
International context large group (different
companies)

• Ensure good communication through centralized
  support office
• Obtain steering committee support to assign local
  resources

No dedicated resources

• Outsource tasks when it is feasible / reasonable
• Assign a task to chase completion of targets

Wide business container

• Main focus on NON-Financial business information

Short time-to-market

• Leverage every independent XML initiatives
  towards XBRL
• Ensure quick decision-making and easy
  implementation

Evolving XBRL Specifications

• XBRL experts to be integrated in the design
  strategy process
• Final technical validation to be performed on
  stable requirements

Lack of XBRL expertiseamong project members

• Need assistance from external experts and learn
  for the future

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XBRL-CRAS project team agreed on assumptions
that paves the way towards the implementation of
an end-to-end application
Electronic credit report
Deliver a first electronic credit report
troughan end-to-end application
Transaction context
Run XBRL Instance document in Synchronous real
time transaction environment (10.000s per day)
Use of common existing code lists as defined
under GREFIS, UN/EDIFACT ISO
Business semantics Code Lists
Develop a multi-language case to benefit from
XBRL flexibility for labels and code lists
Language
Technical XBRL Specs
Develop under XBRL Specification 2.1
Security
Security items (encryption, signature,) managed
outside of the FLIPA project
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Content

• Introduction
• Why is XBRL-CRAS different?
• Taxonomy overview
• Project overview
• Questions

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XBRL-CRAS The FLIPA taxonomy
e-Report over XBRL
Message informationnon-XBRL
Message informationnon-XBRL
Sender, Product, ...
Envelopeheader
Envelopetrailer
...
Key financial figures
Business rating
Credit recommendation
Negative events
Related entities
Entity

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XBRL-CRAS FLIPA Core Taxonomy (Business semantics
requirements)
Item
Description
Identification

• Organization Business Ids
• Organization Name / Trade name
• Organization Address
• Branch/head office information

• Organization Business Ids
• Organization Name
• Organization Address
• Type of relationship Shareholders/shareholdings/a
  ffiliates
• Nb of shares
• of shares

Related entities
Related entities
Related entities
Related entities

• Code,
• Description Long,
• Description short,
• Date start

Legal form - Current
Legal form - former
Activity

• Code (SIC, Nace)

Activity
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XBRL-CRAS FLIPA Core Taxonomy (Business semantics
requirements)
Item
Description

• Trade Class (importer/Exporter),
• Country,
• of total

Trading countries
Trading countries
Trading countries
Operation status

• Code List

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XBRL-CRAS FLIPA Core Taxonomy (Business semantics
requirements)
Item
Description
Trend

• Level,
• Up, down
• Undetermined

• Good,
• Average,
• Poor,
• Undetermined

Trade Morality
Financial situation

• Strong,
• Weak

Payment Trend

• Payment scores

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XBRL-CRAS FLIPA Core Taxonomy (Business semantics
requirements)
Item
Description
Status

• Operating,
• Chapter 11, 13
• Dormant

Business outlook

• Trend up,
• Flat,
• Trend down

Payment behavior

• General experience
• Slow,
• Slow 30,
• Prompt

• Detail with trading partners,
• High credit,
• Owes,
• Past due
• Terms

Payment details
Payment details
Payment details

• Location,
• Headquarters / Branch
• Nb of employee / seasonnal

Nb of employees
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XBRL-CRAS FLIPA Core Taxonomy (Business semantics
requirements)
Item
Description

• Use of existing taxonomies
• IFRS, US GAAP, German AP
• Full or extracts only

Financial statement data

• Trade sector standards

Industry ratios

• Names
• Mgt titles,
• Background

Principal and management

• General property,
• Total value,
• General mortgage information,
• Total value of mortgage,
• Dates,
• Address

Real estate properties
Real estate properties
Real estate properties

• Name,
• Address,
• Customer since,
• Type and amount of Credit

Financial institutions
Financial institutions
Financial institutions
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XBRL-CRAS FLIPA Core Taxonomy (Business semantics
requirements)
Item
Description
Credit Recommendation

• Amount

• Type of rating,
• Rating,
• Agency Name and address,
• Score Type and value,

Business ratings - current
Business ratings - former
Score

• Type and Amount,
• Nb Status,
• Dates occurred

Negative events
Negative events
Negative events
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Taxonomy extensibility CRAS, FLIPA,
jurisdiction or company Taxonomy extensions
e-Report over XBRL
Message informationnon-XBRL
Message informationnon-XBRL
Sender, Product, ...
Envelopeheader
Envelopetrailer
...
Key financial figures
Business rating
Credit recommendation
Negative events
Related entities
Entity

Related entities
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Content

• Introduction
• Why is XBRL-CRAS different?
• Taxonomy overview
• Project overview
• Questions

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The project is organized in competence areas
- to deliver the key results expected from
the different workstreams - to ensure
right level of project governance, monitoring
coordination - to establish
communication to the external world.Responsibilit
ies of each project are detailed in appendix
FLIPA project
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In order to develop the electronic report
product,the project team has identified the
following workstreams to be performed
FLIPA project
Project Officeand Steering preparation
Project Office,
WS 0
Planning,
Budget and resource definition,
Implementation Road map.
Business Requirements
XBRL Taxonomy development
Non-XBRL components
Pilot testingImplementation
Project Management and Liaison team
WS 2
WS 3
WS 4
WS 5
WS 1

• WG project management
• Finalize Business Requirements
• Design conceptual samples
• Validation Rules
• Sign-off code lists

• TWG Project Management
• Taxonomy design strategy
• Data Model
• Taxonomy Implementation
• Testing
• Quality Assurance

• Technical Layer
• Transaction Infrastructure definition
• Product and service handling
• Testing

• Pilot testing coordination
• Infrastructure Set-Up
• Interoperability testing
• Validation and sign-off

• CRAS Chairmanship
• Project Management
• Project reporting
• Champion CRAS cause
• Taxonomy certification

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FLIPA project
Design to cost THE reasonable approach to
deliver the CRAS FLIPA taxonomies on time
Decision by SC 17/10/03
Description
2005
2004
2005
2003

• Reasonable approach to deliver phases 1 and 2on
  time

Phase 1
Phase 2
50
50
100
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and proposed the following planning to have
the phase 1 ended in March 2004
Man/days
Nov
Jan
Feb
Mar
Dec
Internal
External
Project office and 1st steering preparation
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20
WS 0
Project Management and Liaison activities
40
31
WS 1
Business Requirements
81
0
WS 2
XBRL Taxonomy development QA
90
36
WS 3
Non-XBRL components
40
0
WS 4
E-report testing
/
0
WS 5
271
87
Testing not included as dependant on company
specific infrastructure
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Content

• Questions Answers

For further Information please refer to
ourWebsite and egroup http//www.grefis.org/xbr
l-cras.htmhttp//groups.yahoo.com/group/XBRL-CRAS
/

To be renamed atradius on 01/01/04