Best practices for running and validating a CECL model

In the past, implementing a change like CECL would be a matter of mapping the right data and “turning on a switch.” This is no longer the case. The CECL timeline and transition process spans over several years and involves numerous functional departments at both banks and credit unions.

Due to the new regulatory focus on having a defensible model risk management practice, new documentation requirements will need to be followed. Decisions will need to be supported mostly by quantitative reasons.

If all this sounds overwhelming, it does not have to be. This joint webinar between Abrigo and Smarter Risk Management will go over how to do this efficiently and effectively so that institutions are prepared to understand CECL, run a model and have it successfully validated. We will cover a supportable CECL outline as laid out by the regulators.

  • Governance/project management
  • Pre-implementation impact
  • Data management and loss measurement
  • Investment securities
  • Modeling
  • Third parties

 

Meet Your Presenters

Tim McPeak

Tim McPeak is an executive risk management consultant at Abrigo, where he advises on risk and portfolio management with financial institutions nationwide. Previous to his current position, Tim led Abrigo’s strategic partnership program, through which the company partners with consulting, loan review, accounting, and other professional services firms. Before joining Abrigo in 2011, Tim spent several years as an associate with investment banking firm Babcock & Brown, focusing on commercial real estate and infrastructure finance. Tim began his career in retail and business banking with Key Bank of New York. He received his bachelor’s degree from Wake Forest University.

Full Bio

John Hurlock

John has 30 years of experience working with financial institutions. He currently is the president of SMARTER risk management, which was founded by John in 2012. He saw a significant need for Effective Risk Management (ERM) programs in the financial services industry and wanted to continue the decade-long successful initiatives he created at Metavante and Sheshunoff Consulting as the Director of the Enterprise Risk Management. Since developing the SMARTER approach to risk management, John and his team have worked with institutions ranging in size from $500 million to $30 billion in assets. John not only specializes in ERM programs but also advises on strategic and capital planning, DFAST implementation, model validation, compliance program development and regulatory responses.

Full Bio

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