Dec. 15, 2019, is the first go-live date to adopt the new Current Expected Credit Loss (CECL) standard. In anticipation of the go-live date, institutions have begun developing models, implementing systems, and revising processes. Moving into the new year, banks will need to shift their attention to validation of their efforts and running the current process in parallel with the new. These validation efforts will have to consider key elements of the accounting standards as well as quantitative modeling fundamentals.
Joseph Sergienko, director at Guidehouse's Financial Services Advisory and Compliance segment, provides key points to consider to ensure the appropriateness in developing model documentation as part of the validation process.
Our clients are looking for a strong tie-in between traditional validation services, as well as accounting, audit, and data services as they look to meet the Dec. 15, 2019 deadline.