Loading...

Back-Testing Your First CECL Year: Assessing the Accuracy and Performance of Your CECL Model

In the model risk management environment, back-testing plays a crucial role in assessing the reliability and effectiveness of your CECL model. It involves comparing the estimated credit losses, including both forecasted loss rates and reversion rates utilized with the actual losses that occurred after the estimate was developed.

OnDemand
Recorded Monday,
June 17th, 2024
Presented by Michael Umscheid
1h total length
1 CPE Credits
$299.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Accounting/Reporting
  • Auditing
  • General Compliance
  • Lending
  • Risk Management/Legal
  • Commercial Lender
  • Compliance Officer
  • Consumer Lender/Retail Banker
  • Controller/Accountant
  • Credit Analyst
  • Internal Auditor
  • Mortgage Lender
  • Risk Manager
  • Senior Management
  • Small Business Lender
  • Training Manager
  • Trainer

Save on annual training costs with our Webinar Subscription Service and share webinars across your entire organization.

Become a subscriber

Learn about upcoming events, webinars and discounts.

Sign Up For Email Notifications

Are you confident in your CECL model’s accuracy and performance? This course guides you through the crucial process of back-testing, equipping you with the tools and insights to assess your model’s effectiveness and ensure its accuracy in your first year of CECL implementation.

Gain valuable knowledge and skills in:

  • Back-testing fundamentals
  • Short-term back-testing
  • Long-term back-testing
  • Reversion rate validation
  • Model improvement strategies

Seize this opportunity to master back-testing and ensure your CECL model's success in your first year.

What You'll Learn

  • Identify Back-Testing Fundamentals: Learn the role of back-testing in evaluating CECL models, including back-testing horizons and reversion rate calculation.
  • Conduct Short-Term Back-Testing: Assess CECL model accuracy for individual loan cohorts using current losses compared to forecasted losses, as well as identify potential biases in short-term loss forecasts.
  • Employ Long-Term Back-Testing: Evaluate overall model performance over extended periods using metrics like cumulative loss rate and provision coverage ratio and identify trends in long-term loss forecasts.
  • Confirm Reversion Rate Accuracy: Validate estimated reversion rates for different loan categories and take corrective actions if necessary.
  • Enhance CECL Modeling: Analyze back-testing findings, identify areas for improvement, and develop a plan for implementing model refinements.

Who Should Attend

Employees from financial institutions who are involved in CECL processes will benefit from this informative session.

Field of Study:Accounting, Auditing

Skill level:Intermediate

Prerequisites:Experience in back accounting, lending, or analytics. Knowledge of and experience with the CECL Standard.

Advanced Preparation:Knowledge of and experience with the CECL Standard.

Michael Umscheid

Instructor Bio

Mike has been providing accounting, consulting and auditing services to financial institutions for over 30 years. Considered the “CECL Guru,” Mike was selected by the AICPA to create and deliver their 8-hour CPE course on CECL. He is a past member of the Auditing Standards Board, a published author on Accounting and Auditing for Financial Institutions, and has spoken at numerous AICPA conferences. He graduated from Virginia Polytechnic Institute and State University.

Continuing Education Credit Information

Back-Testing Your First CECL Year: Assessing the Accuracy and Performance of Your CECL Model has been approved for 1 CPE credits. Credits are redeemable for Live attendance only.

OnCourse Learning is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Students can contact OnCourse Learning via email at support@oncourselearning.com to lodge complaints or issues.

Print this page