Remove Actual Loss Remove CECL Remove Credit Risk
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Audit & exam advice: Know your CECL model, stress tests

Abrigo

This article covers these key topics: Genuine oversight of the CECL model Q factor support Attention to disclosures and stress testing Preparing CECL models for a merger What CECL topics are auditors and examiners focusing on? Transform CECL data into stress testing insight.

CECL 78
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The case for complex credit: A framework for simplifying challenging loans

Abrigo

Differentiating risk in complex credits Complex credits often come with layers of risk. A helpful way to assess them is by separating key risks from trigger risks. Key risk is the fundamental threat that causes actual loss. Trigger risk is a condition that could activate the key risk.

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6 Common CECL backtesting mistakes & how to avoid them

Abrigo

Sidestep some of the issues that most commonly hurt backtesting efforts Backtesting the estimate for credit losses can build confidence in the CECL model and ensure it reflects an institution's credit risk. You might also like this resource: A bankers guide for CECL compliance and backtesting.

CECL 78