Stress Testing and CECL: Connecting the Dots

Wednesday, September 18, 2019
2:00 PM ET / 1:00 PM CT

Financial institutions have been conducting stress tests long before the regulatory mandates were put in place after the 2007-2008 financial crisis.  Larger financial institutions have principally adopted the top-down approach (aka CCAR) which focuses on macro-economic changes and the resulting “stress” on large portfolios or individual assets.  Smaller financial institutions ($25B or less) primarily perform the bottom-up “stress” that focuses on the loan transaction risk stemming from changes in micro-economic factors i.e. increasing interest rates or cash flows.  As the goal of both approaches is a test on the capital adequacy of the respective financial institution, with CECL having the same goals, CEIS and Abrigo will examine the “bottom-up” stress test approach and the pros and cons for your CECL program

Join this webinar as we discuss:

  1. Data challenges
  2. The benefits of bottom-up stress testing
  3. Using stress testing data and outcomes in the CECL model development

Partnered with

ceis-review

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

Dean Giglio

Mr. Dean Giglio is a Managing Director with CEIS Review who is responsible for Loan Portfolio Stress Testing and related engagements for CEIS’ client base. Mr. Giglio is a Senior Level Credit Risk professional with over 25 years of credit risk management experience ranging with involvement in areas such as middle market portfolio management, senior level credit decisions, structuring and managing portfolio data reporting, credit risk management – namely, risk rating determination, regulatory classifications, ALLL Management, and special assets credit structuring, and developing credit decision modeling solutions. He has held titles such as Special Assets Team Leader, Senior Credit Risk Leader, Senior Portfolio Officer of Consumer and Diversified Industries, and Risk Data Leader. Prior associations have been with National Westminster Bank USA, ABN Amro Bank NV - NY, and GE Capital, CT. Mr. Giglio obtained his Bachelor of Science in Accounting from St. John’s University. In addition, Dean has completed a formal credit training program, Advanced Risk Analysis certification, Advanced Project Management training, and is a certified Six Sigma Green Belt with a focus on Basel, KYC/AML Management.

Full Bio

David Vest

Mr. Vest is Managing Director – Stress Testing at CEIS Review. He manages and supervises the ongoing data assembly requirements, analysis, and report generation that provides the clients’ stress analysis. He has over 30 years of credit risk management experience ranging from credit portfolio modeling to corporate finance lending, loan review, credit policy/administration, loan workout, and bank regulation. He is a versatile subject matter credit expert blending technical proficiency and business savvy in creating objective and timely outputs. Experienced in evaluating credit risk at both granular and portfolio levels and evaluating the integrity of credit risk processes. He was formerly associated with Mizuho Bank, Ltd, Bank of New York, Federal Reserve Bank of New York, Unibank a/s (n/k/a Nordea Bank Denmark A/S), and Manufacturers Hanover Trust Company. Most recently he was Senior Vice President at Mizuho in the Risk Management Division engaged as a senior risk manager in credit risk modeling activities in the Americas and US credit risk reporting.

Full Bio

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