Building a Current Expected Credit Loss Response Program

CECL, or current expected credit loss, is a new accounting standard that will change how financial institutions account for expected credit losses. Complying with the new CECL standard will have a major impact on an institution’s operations, accounting/finance, IT, credit, and risk processes and systems. 

This guide discusses the rationale and timing for the accounting change,  as well as the financial process and system changes required to comply, including:

• Modeling alternatives
• Required changes to financial statements and disclosures
• How to implement a CECL response program