Credit Risk: CECL, Stress Testing, and Where We Go from Here

Managing credit risk is a crucial skill  that bankers have improved over the past business cycle. Despite the fact that many credit risk practices are already well-established, there have been some significant recent changes to how we model and report on credit risk.

For example, many community banks and credit unions have now switched to CECL models in the past year.

Additionally, financial institutions in general are updating and improving how they capture the credit risk of their customers through stress testing and capital planning. Learn key lessons from the implementation process of more than 50 CECL and credit stress testing models over the past two years.

Learning Objectives:

• Learn key lessons learned from CECL implementations and how to maintain a stable CECL process.

• Evaluate how the economic impacts of the COVID-19 recession have affected credit risk models.

• Explore trends and future expectations for stress testing at community-sized institutions.
  

Recorded November 8, 2023.