Workshop 3 Preparing for CECL

Workshop 3 Preparing for CECL

Workshop 3: Preparing for CECL - November 7

8:30 Registration and breakfast

9:00 Leveraging and adapting existing models for CECL  

  • What are the current issues with model production in general and the CCAR experience? 
  • Gap analysis
  • Provision Matrix Models
  • Probability – of – default methods
  • Enhancing frameworks to address gap

9:45 Current state of CECL implementation

  • Key interpretation considerations relating to the new standard
  • Highlights of progress made towards leveraging CCAR for CECL implementation
  • Remaining challenges: impact and unintended consequences
  • Challenges involved in the CECL production process

10:30 Morning coffee break

11:00 CECL and the new credit risk regulations

  • CECL and risk appetite assumptions
  • Thinking of CECL in abstract terms and debating the how’s and why’s
  • How can you prepare for both CECL and CCAR without overburdening
  • CECL and the estimation on where are we in the credit cycle?

12:30 Lunch

1:30 CECL and the new credit risk regulations

  • CECL and risk appetite assumptions
  • Thinking of CECL in abstract terms and debating the how’s and why’s
  • How can you prepare for both CECL and CCAR without overburdening
  • CECL and the estimation on where are we in the credit cycle?

2:15 How can you prepare better for CCAR

  • How do you go about developing CECL models?
  • How do CECL models differ from CCAR and stress testing models
  • What kind of business impact CECL and CCAR have?
  • Scenario construction for CCAR for liquidity stress testing
  • Impact on balance sheets and income statements

3:00 Afternoon coffee break

3:30 Preparing for CECL, modeling challenges for retail portfolios

  • Challenges of implementation of CECL in terms of data, assumptions and methodology
  • Analysis and implications of the CECL framework across retail portfolios
  • Analysis of the Expected impact of CECL over the business cycle