Financial institutions complying with the Current Expected Credit Loss standard, or CECL, in 2023 have to manage a myriad of new data, modeling, and forecasting considerations. With new requirements comes new expertise and time constraints. To assist community financial institutions in navigating the transition, Abrigo is hosting a two-day workshop filled with over seven hours of educational content that describes the new standard, recommends modeling best practices, identifies key players at the financial institution, examines forecasting, and shares case studies from those who have done it before, including the SEC-filing institutions who implemented last year.
This virtual workshop will be led by Abrigo personnel of former bankers and industry experts who have worked with hundreds of institutions already on conducting concise, credible, and efficient CECL calculations.
Topics to be addressed each day are:
Tuesday, May 11
Session 1: An Introduction to the New CECL Standard, 10:00 – 11:30
In this first session, we will establish a foundational understanding of the new Current Expected Credit Loss (CECL) accounting standard. This will include reviewing the history and evolution of the allowance, discussing the reasoning behind the move to CECL, and examining what’s in scope, measuring losses, loss recognition, timelines, and more.
Session 2: CECL Modeling – Estimating Lifetime Expected Losses, 12:00 – 1:30
In this second session, we will introduce and walk through detailed examples of a variety of the more widely considered and CECL-compliant models/methodologies, as well as discuss the pros, cons and applicability of each approach to estimating lifetime expected losses.
Wednesday, May 12
Session 3: Preparing for CECL – Who, What, When?, 10:00 – 11:00
In this third session, we will discuss who should be involved, what they should be doing, and when they should begin preparing for the formal transition to CECL adoption.
Session 4: Examining Reasonable and Supportable Forecasts, 11:00 – 11:45
In this fourth session, we will examine the new requirement under CECL of developing and incorporating reasonable and supportable forecasts in our allowance calculations. How is this different from current US GAAP requirements, and what might this look like in practice?
Session 5: Applied Case Studies, 12:15 – 12:45
In this fifth session, we will leverage case study examples to apply our learning and further solidify our understanding of previously discussed key concepts.
Session 6: Lessons Learned from SEC Filers, 12:45 – 1:30
In this sixth and final session, we will review some of the apparent trends and best practices observed in those SEC filers that have already formally adopted the new CECL standard, and discuss how we might leverage this information to better prepare our own institutions for this shift.
Who Should Attend:
CEOs, CFOs, ALCO members, controllers, chief risk officer, chief retail, funding officers