As most of us know the Financial Accounting Standards Board (FASB) introduced the new Current Expected Credit Loss (CECL) standard last year to better understand the credit risk associated with the portfolio and reporting on financial instruments in financial statements. As the deadline for the first filing get closer and becomes more of a reality understanding the data and having a plan become more crucial.
A successful implementation of CECL requires better integration between accounting and risk management and access to an expanded historical data set to calculate credit reserves. CECL creates a waterfall effect for financial accounting and the budgeting and planning teams. Creating a plan and asking proactive questions will help the institution better prepare for the changes. A solution does not need to be overly complicated. Asking the right questions and focusing in the right areas will greatly reduce anxiety.
· What CECL means for data retention and storage
· How can data be stored
· Timelines and implementation concerns
· Things to keep in mind
· A new application for CECL: Prologue Credit Loss Manager
CFOs, Controllers, Financial Accountants and Asset Liability Managers should join Fiserv experts for an educational and informative discussion to learn how your institution might be able to create a strategy to manage the new process as well as see Fiserv’s solution, Prologue™ Credit Loss Manager. We’ll discuss what’s ahead for the coming FASB CECL mandate and how your institution can be better prepared.