CECL Updates for Directors: 3 Topics to Cover with The Board
CECL updates for directors are critical for financial institutions transitioning to the current expected credit loss (CECL) standard in 2023. After all, the board (or its designated committee) has oversight responsibility for the management and for activities related to the allowance for credit losses and provisions for credit losses. In addition, directors have oversight responsibilities for... Read more »
Do This, Not That: Explaining CECL to Your Board
Explaining CECL and your institution’s transition progress to your board of directors is important. In a recent webinar, Abrigo experts outlined several suggestions for explaining the complexities of CECL to the board. Here are some of their tips.
CFO Corner — “ALLL” about CECL
In this occasional feature, CFOs from financial institutions share their approaches to the ALLL and to the CECL transition, as well as advice for keeping the board informed about related matters. Here, Ronald S. Ohsberg, Senior Executive Vice President, Chief Financial Officer and Treasurer of The Washington Trust Company shares advice from his institution.
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.