Current Expected Credit Losses (CECL) Implementation: Tips and Strategies
The early implementation of the Current Expected Credit Losses (CECL) is expected this year, and financial institutions grapple with the facets of this new accounting standard.
The CECL includes a more complex credit loss model that requires a more detailed report when calculating and reporting future losses. The implementation of CECL could potentially increase the allowance for loan losses estimates in the years to come. Thus, it is imperative for institutions to fully understand the fundamental framework of CECL, and, to create a committee that would re-evaluate their existing models and processes to help them with the transition to this new accounting standard.
In this LIVE Webcast, a panel of distinguished professionals and thought leaders organized by The Knowledge Group will provide an in-depth discussion of significant updates on the Current Expected Credit Losses implementation. Speakers will also go beyond the basics and share risk mitigation strategies and compliance practices to avoid potential risks and legal pitfalls.
Key topics include:
- Current Expected Credit Losses (CECL): An Overview
- Implementation Framework
- Risk Mitigation Strategies
- Best Compliance Practices
- What Lies Ahead
John Dalton, CPA, Director, Product Strategy Management - Financial & Risk Management Solutions
- Anchor: There is no CECL “Easy Button”, but with proper planning, there are ways to turn the burden of compliance into the benefit of long-term strategy.
- CECL Defined – What are the fundamental differences between estimates of the lifetime expected credit loss and the 12-month look forward built into our current Incurred Loss methodology?
- Why now?
- Common myths related to size of institution – applies to all regardless of size
- Who is ready? – Not many.
- CECL Timeline - will it be delayed? – Probably not.
- Regulatory relief
- What should FI’s do to prepare?
- Build a Team
- Gather historical data
- Choose risk models and run parallels.
- Which method will you choose?
- Fiserv’s solution for CECL
- Beyond CECL Compliance – How can we all use the CECL data and results to improve strategic planning (e.g. Forecasting & Stress Testing)
Nickolas Ireland, Managing Director
Baker Newman Noyes
- Run through an example using one of the accepted methodologies
- Discuss where institutions should be with their implementation efforts at this point in time (I will include a timeline that I’ve put together and talk about where they should be within the timeline)
- Current regulators expectations are for upcoming examinations in terms of institutions’ CECL preparedness
- Perspective on how CECL is going to impact ICFR documentation and testing
Who Should Attend:
- Credit Unions
- Savings Institutions
- Holding Companies
- Finance Executive & Directors
- Chief Financial Officers
- Accounting Executives
- Financial Risk Officers
- Loan Portfolio Managers
- Credit Portfolio Managers
- Other related/interested Professionals
John Dalton is a Director of Product Strategy in the Financial & Risk Management Solutions division of Fiserv. Prior to joining the Fiserv team, John had a successful career as a Risk Advisory leader with Accenture, Bank of America, Dixon Hughes Goodman, and Bank of Atlanta. As founding member, John co-authored Bank of Atlanta’s Business Plan, Private Placement Memorandum and Change of Control, ultimately gaining regulatory approval to open the de-novo bank in 2006. John also serves as the Senior Captain for PiratesAtlanta, LLC organizing sailing charters for more than 300 customers since 1999. He holds a Mechanical Engineering degree from Vanderbilt University, an MBA from Emory University, and a Masters of Accountancy from Georgia State University. John is a member of the American Institute of CPAs and serves on the Georgia Bankers Association Asset Liability Committee.
John Dalton is a Director of Product Strategy in the Financial & Risk Management Solutions division of Fiserv. Prior to …
Nick is a managing director in the audit practice at Baker Newman Noyes, specializing in providing audit services to banks, financial services institutions, and employee benefit plans. Nick leads the firm’s Current Expected Credit Loss (CECL) Task Force and is a frequent speaker and author on a variety of topics related to CECL. In 2017, Nick presented a CECL Update at the Massachusetts Bankers Association CFO Forum. He earned a bachelor’s degree, magna cum laude, in accounting with a minor in statistics from Plymouth State University.
Nick is a managing director in the audit practice at Baker Newman Noyes, specializing in providing audit services to banks, …
Print and review course materials
Method of Presentation:
On-demand Webcast; Group-Internet Based
Experience in Accounting
NASBA Field of Study:
Accounting - Technical
NY Category of CLE Credit:
Areas of Professional Practice
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About Baker Newman Noyes
Baker Newman Noyes (BNN) is one of the nation’s top 100 accounting and consulting firms with offices throughout New England in Maine, Massachusetts and New Hampshire. The firm provides expert accounting, auditing and tax services, as well as risk and business advisory and employee benefit plan services. The BNN banking practice works with commercial and savings banks, credit unions, trust companies, non-depository trust companies and registered investment advisors, and offers a dedicated Current Expected Credit Loss (CECL) Task Force. Their CECL Toolkit is available online at www.bnncpa.com.