Now that you’ve made decisions on your current expected credit loss (CECL) models and understand some of the hidden costs, let’s discuss the next hurdle –implementation.
This article will help you understand the scope of work and documentation required in your CECL journey. In our experience working with over 150 institutions on CECL implementations, we’ve noticed the following common challenges
- Data requirements and processes
- Choosing reasonable and supportable periods and macroeconomic forecasts
- Changing your allowance process