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Subject Matters at the National CECL Conference

Brandy Aycock
March 3, 2018
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The sessions at the MST 2018 National CECL Conference are built around the most important and challenging CECL topics as they are emerging during the transition period. Each General Session will feature presentations by panels of leading CECL experts and interactive discussions among attendees.

The 2017 conference sessions were structured around panels of experts as opposed to individual presenters. The format was so well received and highly rated that we have retained the format for this year’s program. Here’s a sneak preview of some of the conference sessions:

Data Gap Analysis

Data is chief among concerns of institutions in their transition to CECL. Do you have enough? Do you have the right types? What efforts are you expected to take to obtain or reconstruct data from previous periods? What data will you need to project future loan performance? The data you use for estimating under CECL will have to survive regulator and auditor scrutiny, leading to concerns such as the accessibility, adjustability and controls available within your data repository, and the integrity of the data captured and held within that repository, which is only as clean as the source feeding that data, and only as strong as the associated controls. Our panel of data analysts will walk through some of the most prevalent challenges and practices they have observed in working with transitioning institutions, examine common problems, and offer potential solutions.

Pooling

For purposes of estimating under CECL, institutions are required to pool loans according to similar characteristics, and the experts suggest that CECL pools will be more granular than those used estimating under the current incurred loss model. How much data makes a good pool? How granular should you go? Our panel will include bankers who have changed their pooling structures for CECL as well as others who have decided they have the proper structures already in place.

Methodologies

At the end of the day, transitioning to CECL is about finding and converting to a CECL-compliant methodology: Cohort, Vintage, PD/LGD, DCF. The process need not be as complicated as many institutions are making it. Our panel of experts will help you find where to start and how to simplify your search, and we’ll examine in depth the various methodologies getting the greatest amount of consideration.

Reporting

According to FASB: “… the change from an incurred to an expected loss model introduces the need for additional disclosures, most notably those about the inputs used to estimate expected credit losses. … the Board concluded that users will benefit from understanding how an entity derives and uses this information.” Our experts will take a deep dive into CECL’s reporting requirements and help attendees work their way through the various requirements to chart their own course to compliance.

In addition to helping you address transition-specific issues, sessions will include insights on economic forecasting, regulatory and accounting updates and perspective on how CECL might impact other departments, practices and initiatives in your institution.

Some session titles include:

  • Current Expected Credit Loss: It’s a Process Not an Event
  • Ripped from the CECL Headlines: News and Updates from FASB/TRG, FDIC, OCC, FED, SEC, NCUA
  • What are Examiners and Auditors looking for over the next 18 months?
  • Transition to CECL Using your Incurred Loss Methodology 
  • Impact Players: Q Factors Under CECL
  •  
  • Outlook: Domestic and International Economic Forecast 
  • Understanding and Applying Reasonable and Supportable Forecasts to CECL
  • Impacts of Different Economic Factors on Loan Types
  • Two Things in Accounting Life Are Certain: Taxes and CECL
  • Analyzing Your Data in Preparation for CECL 
  • Game Plan for Determining Your Current State Assessment and Why It Matters
  • Methodology Coaching
    • Cohort
    • Vintage
    • PD/LGD
    • Discounted Cash Flow
    • Multivariate Regression
  • Understanding Pooling and Special Reserves
  • Update on CECL Reporting and Disclosures
  • The Great Recession: Would CECL Have Mattered?
  • Confessions of a Data Analyst: Best and Worst Practices

*Titles subject to change.

Keep watching the conference website for more session details. Regular registration ends March 31.

About the Author

Brandy Aycock

Brandy Aycock is Director of Event Marketing at Abrigo.

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About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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