Mastering CECL Model Validation: Back-Testing for Accuracy and Success Webinar

Participants will gain practical knowledge on defining and implementing robust back-testing methodologies, focusing on the analysis of weighted average loss and prepayment rates across active vintages.

We will explore how to compare forecasted results with actual outcomes, identify historical trends, evaluate charge-off cycles, and document findings to drive meaningful model configuration updates. Attendees will enhance their ability to validate CECL models, leading to improved forecasting accuracy and stronger risk management practices.

What You’ll Learn

• Define back-testing within the CECL context, emphasizing the comparison of forecasted versus actual results
• Review the importance of historical data and relevant metrics in the back-testing process
• Analyze patterns and trends in loss rates and prepayment rates across different vintages
• Review best practices of comprehensive reports of back-testing findings, including statistical analysis, charts, and graphs

Who Should Attend
Attendees should be employees from financial institutions who are involved in CECL processes.