Skip to main content

ALLL & CECL: A Harmonious Risk Management Approach

A harmonious risk management approach includes current and forward-looking expectations for the volume and timing of credit losses for functions like pricing, budgeting, allowance preparation, and stress testing. Estimating losses in an environment that differs from recent historical experience in a consistent, quantitatively justified manner requires the use of some form of modeling approach.

While the application of those models and underlying assumptions vary by activity, the models themselves should still reflect the institution’s best estimate and should not consider any reliable inputs “off limits” during development. Taking this into consideration will help to develop a harmonious risk management approach at your institution.

Download to learn more about:

  • How to develop credit models
  • Qualitative adjustments for incurred loss
  • Quantitative frameworks for current expected credit loss (CECL) applications
  • Other applications for stress testing and planning

Looking for Banker’s Toolbox? You are in the Right Place!

Banker’s Toolbox is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to Banker’s Toolbox Community Online.

Make yourself at home!

Looking for MainStreet Technologies? You are in the Right Place!

MainStreet Technologies is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the contact us button here, or the link in the top navigation, to reach product support for your MST products.

Make yourself at home!

Looking for Sageworks? You are in the Right Place!

Sageworks is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Sageworks products.

Make yourself at home!

Looking for Farin? You are in the Right Place!

Farin is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Farin client portal.

Make yourself at home!

Abrigo acquires construction loan management solutions

Coupled with our lending suite, Construct and +Pay from BankLabs enable end-to-end automated residential/commercial construction loans.

Read the press announcement

BankLabs Logo Abrigo Logo