Navigating Loan Pool Segmentation under CECL

Presenter: Robert Ashbaugh

Proper loan pool segmentation, already a critical issue in the incurred-loss method of calculating the allowance for loan and leases losses (ALLL), is expected to have even more importance under the current expected credit loss model (CECL). Various methodologies for forecasting expected credit losses will require specific kinds of segmentation in order to execute them.

Join Sageworks Executive Risk Management Consultant Rob Ashbaugh as he discusses how to revisit loan pools for ALLL calculations under CECL.

Watch to learn:

  • How segmentation procedures may change under CECL
  • Achieving the balance between granularity and statistical significance
  • Actionable steps for making segmentation updates

 

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