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Benchmarking, Back-Testing, & Sensitivity Analysis
CECL is a financial accounting standard that requires all companies to estimate and record an allowance for expected credit losses on their financial asset portfolios, including loans and investments. In preparing a CECL estimate, companies develop models to help predict the estimated amounts. Benchmarking, back-testing, and sensitivity analysis are analysis techniques used in the context of modeling to evaluate the accuracy and robustness of the models used. These techniques are part of a model-risk management policy.
Support your CECL model. Learn more in the whitepaper below about Benchmarking, Back-Testing, and Sensitivity Analysis and how ARCSys can help.
Follow the link below to read the full article:
https://21616605.fs1.hubspotusercontent-na1.net/hubfs/21616605/ALP%20Resource%20Library/Benchmarking%2c%20Back-Testing%2c%20&%20Sensitivity%20Analysis%20Final.pdf