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Current Expected Credit Losses (CECL)
2 Part Series

Tuesday, July 30th, August 15, 2024 10:00 am - 11:30 am Central Time

A BankWebinars.com Program

Click Here to register for program $549.00

The new Current Expected Credit Loss (CECL) model is now effective for reporting entities. This 2 part series will provide an overview of the new guidelines.


Current Expected Credit Losses (CECL) Part 1 - An Overview

This course will focus on the difference from the existing methodology. We will cover the reasons for the ruling, the application to asset portfolios, and review the most commonly used expected loss models.

This course is designed to provide you with an understanding of the difference between the existing GAAP incurred loss model for recognizing credit losses and the new CECL model. We will review the changes in ASU’s related to the new guidance, along with the implications of these changes. The course will provide up-to-date information on reporting and implementation of the CECL models.

In addition, the course will explain the most common models for use and how to enhance their application to your CECL implementation as we identify the drivers and complexity of each model.

What You'll Learn
  • Identify the difference between an incurred loss model and an expected loss model
  • Understand U.S. GAAP guidance including relevant ASU’s
  • Know which companies and portfolios the guidance applies to
  • Understand the reporting requirements
  • Develop an understanding of the use of several models for calculation of CECL
  • Enhance your implementation process and data collection
  • Clearly describe the difference in approach and impact of financial statements

Current Expected Credit Losses (CECL) Part 2 - Model Review

This course will illustrate the most common expected credit risk models with a review of the calculations.

This course is designed to provide you with an understanding of the methodology and differences between the various credit loss models which may be used for calculating expected credit losses under the new CECL guidelines.

We will cover the six most commonly used credit risk models and explore the requirements for implementation and use of each technique, reviewing the methodology and data requirements, and evaluating accuracy and applicability of each model.

The course is an essential step in the development of systems to address the calculation of current expected credit losses for implementation.


What You'll Learn
  • You will be able to identify the difference between an incurred loss model and an expected loss model
  • Understand U.S. GAAP guidance and Current Expected Credit Loss calculations
  • You will be able to identify the six main credit loss models
  • Develop an understanding of the data and systems requirements for implementation of the credit risk models
  • Be able to understand the complexity and accuracy of each model and its impact on CECL ALLL
  • Clearly be able to describe the difference in approach and impact of financial statements

Instructors

Paul Kern holds a Master of Business Administration in Finance and a Bachelor of Science in Accounting degrees, and is a Certified Public Accountant, Arizona License #18270. Paul’s experiences include many decades of progressive hands-on managerial experience in the financial services sector. Paul has worked with some of the largest banks in the country in areas including accounting, finance, treasury, credit risk and interest rate risk measurement and management.