Homepage Perspectives

I’ve had several conversations with CECL validation clients over the past few months about model back-testing. Institutions often bring it up because an examiner or auditor asked about it, and I always try to shift the focus to why it matters beyond just checking a regulatory box, and how to build a practical approach that actually adds value. For a while, CECL back-testing didn’t feel all that relevant because losses were so low. But as certain portfolios start to show a lit

For many financial institutions, CECL implementation was a heavy lift - one that checked a regulatory compliance box and moved on. But the most effective institutions see CECL as more than an accounting requirement. They see it as a strategic tool. And the best way to ensure that tool is working as intended? A thorough, independent CECL model validation. In this post, we’ll explore how a robust CECL validation adds value far beyond compliance, enhancing reserve precision, rep

Intricate geometric glass ceiling reflecting the sky, creating a mesmerizing pattern of blue squares. Why Model Integrity and Scenario...

In an era marked by rapid interest rate shifts, evolving depositor behavior, and geopolitical uncertainty, financial institutions can no...

In today’s highly regulated and data-driven financial environment, models are at the heart of decision-making, from credit underwriting...