As more institutions are required by auditors and examiners to validate their CECL models, understanding the expectations of validators, and the critical role documentation plays in the process is essential for your institution’s success. In this comprehensive course, we will walk you through the entire validation process, highlight common validation findings across institutions, and provide actionable examples to help you meet validator expectations with confidence.

Gain valuable insights into:

• Identify common CECL model validation issues and strategies for resolving them

• Key pitfalls in methodology and assumptions that can affect your validation and cause volatility

• Reviewing and understanding differences between validator’s feedback

• How to gauge what constitutes sufficient documentation to justify decisions

• How detailed documentation can set your institution up for success

Objectives:

1. Recognize the benefits of robust validation practices and documentation

2. Follow practical guidance for conducting effective CECL validations

3. Recognize the common documentation issues in CECL validations

4. Identify issues related to data and inputs that can affect your validation