Given that the CECL model is non-prescriptive, banks and credit unions have flexibility in choosing the right CECL methodologies for their institution’s unique data situation. This flexibility often leads bankers to one simple question: Where do I begin? In this complimentary infographic, learn about the 7 methodologies available to use and when they are or are not recommended.

This whitepaper will take a closer look at some of the existing risk management practices employed by financial institutions today and the areas of overlap and interaction between them. Additionally, it will consider ways to synthesize results across these practices and the case for automation to accelerate that process.

Any discussion on Asset/Liability Management (ALM) should begin with a discussion on the underlying foundation required to accurately model forecasts. One of the most important building blocks for that foundation
is cash flows. It’s crucial to understand the importance of cash flows, the different types, their characteristics, and how they perform or act in a forecast. Cash flows are the foundation of ALM modeling and understanding them helps to understand the results when attempting to model interest rate risk through reporting.