Your credit union CECL committee
If a credit union has not yet formed a committee to oversee CECL implementation, consider including representatives from the board of directors, accounting/finance, information technology, credit analysis, internal audit and risk mitigation.
CECL: A CEO’s role in improved management of credit losses
There is a reason regulatory agencies are directing their guidance on the new current expected credit loss (CECL) model to the attention of financial institution CEOs. After all, it is top management’s responsibility at the end of the day to ensure the allowance for loan and lease losses (ALLL) is adequate.
Backtesting for Reporting
Backtesting is an exercise that compares the actual outcome with model forecasts during a defined period. It can be considered a form of outcome analysis to monitor model performance and determine if adjustments or revisions are needed over time.
Presenting to Board
When presenting ALLL results to the board, financial professionals do not need as much documentation as is necessary for examiners. Rather, they should keep the presentation concise, objective and focus on the big picture.