Portfolio assessment fundamentals

Although many institutions have already discovered the value of a dedicated software platform to accomplish their current ALLL processes, nearly all institutions would agree that modernizing their approach has material benefits. The following recommendations are not intended to replace regulatory guidance as it relates to vendor management. Rather, the intent is to provide an understanding of a CECL-ready solution and the critical elements that such a solution should contain for tactical due diligence.

While exploring solutions, both in-house and vendor based, there are minimum capabilities that should be investigated in detail. The following represents fundamental areas of consideration:
• Data – adequacy, retention and process
• Contractual Life – calculation and support
• Segmentation – flexibility, comparability and support
• Methodologies – flexibility, comparability and support
• Forecasting and Adjustments – flexibility, comparability and support
• Documentation – completeness, auditability and efficiency
• Product Evolution and Enhancements – roadmap, costs and installation
• Training, Advisory Services, and Technical Support – availability, expertise and fee structure

Download the whitepaper below for more details.

Related Asset - Whitepaper:
Whitepaper: CECL Vendor Due Diligence

Whitepaper: CECL Vendor Due Diligence - Download the PDF

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