The Current Expected Credit Loss (CECL) standard is a model within a new accounting standard created to improve the measurement of expected credit loss on financial assets. CECL gives a forward-looking view and better transparency of the inherent credit risk in a financial institution's assets.

In this video, Cris DeRitis explains how institutions can use existing models and modify them to be compliant with the new CECL standard. Acceptable models institutions can use include Dodd-Frank Act Stress Testing (DFAST), or through-the-cycle or internal models.