Allowance (CECL) Estimation

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A Comprehensive CECL Solution

Designed by CPAs, Statisticians, and Technologists

Our Current Expected Credit Losses (CECL) Module, together with our team of data and modeling consultants, delivers the technology platform and expertise to take you from where you are today to producing audit-ready CECL estimates.

Our consulting team is available to assist pre-implementation in seamless data integration, resolving data gaps, and selecting methodologies.

Our dedicated CECL Module executes your monthly loss reserving and reporting process under the new CECL standard, covering data intake, segmentation, modeling, and report generation within a single platform.

We’re Different

CECL is new to many.

Not to us.

Core Competency

Experts in the life-of-loan, econometric credit modeling that CECL requires.

Complete Package

Technology solution backed by experts in data, modeling, and accounting.

Depth of Expertise

In-house statistical modeling team experienced in all asset types.

Scalable Solution

Tailored solutions so you’re not paying for functionality you already have.

A Single Solution

Solve Your Monthly CECL Reporting Requirement

Data Assessment

Our credit and data consultants are available to identify and solve data gaps and prepare your data for analysis and modeling. We deliver expertise in:

  • Data gap analysis and remediation
  • Database design, to collect and preserve good data
  • Selecting and integrating representative third-party, proxy data

Analytics and Models

Segmentation analytics, model selection, and a model execution engine that cover every methodology contemplated by the CECL standard.

  • Segmentation, with intuitive user interface
  • Monthly model execution, with rapid run-times
  • Method selection, including in-house models or custom builds

Report Center

Our CECL platform begins with data intake and ends with delivering your monthly ALLL estimates and supporting audit-ready reports,  including:

  • Model diagnostics
  • Required disclosures
  • Explanatory board reports
  • Integrated BI tools for custom analysis

CECL Basics

What is CECL?

CECL is an acronym for Current Expected Credit Losses, and is used as shorthand for the new GAAP standard put forth by the FASB to include expected life-of-loan (LOL) losses in the allowance for credit losses for financial assets that are not accounted for at fair value through net income. It is a change from the current incurred-loss model.

IFRS 9 vs. CECL

IFRS 9 is the International Accounting Standards Board’s (IASB) analog of CECL.

CECL Implementation Dates

For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the new CECL standard takes effect for fiscal years beginning after December 15, 2019.

For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020.

Transparency

OCC 2011-12/SR 11-7

All RiskSpan developed models utilized in our module are certified by an independent model governance team and the certification reports are available to the customer.

Back-Testing

Additionally, regular back-testing is performed on our models, refinements are made as appropriate, changes are documented, and new versions are released onto the platform.  RiskSpan will provide the resources necessary to support the validity of the models when subject to audit or regulatory inquiry.

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Do More with Your CECL Estimate

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Data at your Fingertips

Loan and Securities Data and Models – On One Platform

The RiskSpan Edge Platform is a data management and model execution platform that enables users to easily access data, models, and governance tools – on a single integrated system.

Load your own portfolios, benchmark to third-parties, deploy predictive modeling to forecast performance. Discover trends and insight that give your team an edge.

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