CECL Model: Strategies for Reliable Credit Loss Estimation | 2-Day Deep Dive Course
Join our two-day hands-on CECL Workshop in New York City, to understand the most important credit risk assessment and accounting aspects. The Current Expected Credit Loss (CECL) model under ASC 326 has transformed credit risk assessment and financial impairment reporting. Organizations must estimate lifetime expected credit losses at origination using a data-driven and forward-looking approach.
This process requires expertise in quantitative modelling, scenario analysis, data management, and regulatory compliance. Many companies struggle with implementation, while those that have already adopted CECL continue refining their models to improve accuracy. Our CECL workshop provides professionals with a structured approach to mastering these complexities, ensuring they stay ahead in compliance and risk assessment.
Understanding ASC 326 and Its Impact
In December 2019, the Financial Accounting Standards Board (FASB) introduced Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (ASC 326). This update fundamentally changed how financial institutions estimate credit losses. Unlike the incurred loss model, CECL requires institutions to estimate expected losses over a financial asset’s lifetime at the time of origination.
This change impacts a wide range of entities, including banks, investment firms, corporate treasuries, and regulated entities under U.S. GAAP. Organizations must adopt new methodologies to ensure compliance, improve risk forecasting, and maintain accurate financial reporting. Our Current Expected Credit Losses Implementation Course provides in-depth insights into the challenges and best practices for adapting to these evolving standards.
Overcoming CECL Implementation Challenges
Many organizations still face data limitations, model validation issues, and evolving regulatory expectations. Ensuring compliance with SEC, OCC, FDIC, Federal Reserve, and audit requirements requires continuous improvements in data quality, forecasting techniques, and governance frameworks.
Additionally, integrating CECL models with financial reporting and risk management systems remains a complex challenge. Our CECL training course delivers structured insights and practical solutions to address these critical issues. This program helps professionals streamline their implementation strategies and improve model accuracy.
What You Will Gain from This Program
This exclusive two-day program provides in-depth technical knowledge, practical implementation strategies, and expert-led case studies. Participants will gain hands-on experience in building, validating, and optimizing CECL models using advanced methodologies.
The Current Expected Credit Losses Implementation Course equips professionals with the essential skills to navigate CECL challenges. It ensures they develop robust, compliant, and data-driven credit loss estimation techniques.
Whether you are new to CECL or refining your existing framework, this CECL workshop ensures you stay ahead in financial risk assessment and compliance. This program offers the technical depth, regulatory insights, and practical application needed for effective CECL implementation.
Key Learning Features
- Comprehensive CECL model overview – scope, objectives, and key components.
- Quantitative modeling considerations – balancing model sophistication, cost, and benefit analysis for optimal CECL implementation.
- PD, LGD, and EAD calculations – hands-on modeling for expected credit losses.
- Scenario analysis & stress testing – macroeconomic forecasting and risk factor adjustments.
- Data challenges & model validation – addressing quality, calibration, and governance issues.
- CECL implementation hurdles – revolving credit, PCD assets, and DCF applications.
- Regulatory compliance & disclosures – SEC, OCC, FDIC, and Federal Reserve requirements.
- Strategies to maximize returns under forward-looking risk and emerging industry practices
- Implementation issues related to revolving credit instruments, PCD assets, and DCF use
- Real-world application – case studies, portfolio segmentation, and interactive modeling exercises.
Our global Program Schedule
Online | Dallas | Chicago | Zurich | Miami | San Francisco | Washington DC | Seattle | Las Vegas | London | Singapore | New York City
For More Information
Thank you for your interest in our CECL workshop! To register or learn more, contact our customer services team via phone, email, or online chat. Our team can assist with pricing, schedule, location, and registration details. Don’t miss this chance to enhance your skills and stay ahead in CECL implementation.
Register today and take the first step towards advancing your career. We look forward to hearing from you!
Course Description
- Session 1: Overview and Fundamentals of CECL
- Introduction to CECL and its objectives – understanding the shift in credit loss estimation.
- Scope and impact of CECL – implications for financial institutions, investment firms, and corporate treasuries.
- Regulatory landscape and compliance – SEC, OCC, FDIC, and Federal Reserve requirements.
- Key financial reporting implications – integration of CECL estimates into financial statements.
- Challenges in CECL adoption – implementation complexities, model selection, and governance considerations.
- Session 2: Credit Modelling and Data Requirements
- Key CECL models used by U.S. banks – Loss Rate Model, Vintage Analysis Model, Roll Rate/Transition Matrix Model, Probability of Default (PD) / Loss Given Default (LGD) Model, and Discounted Cash Flow (DCF) Method.
- Model selection considerations – choosing the right approach based on asset class, portfolio composition, and regulatory expectations.
- Advanced modeling techniques – incorporating Monte Carlo simulations for stress testing and econometric/machine learning models for predictive analytics.
- Data requirements & key input variables – integrating historical loss data, macroeconomic indicators, and forward-looking assumptions.
- Scenario analysis & stress testing – assessing credit losses under varying economic conditions and regulatory stress scenarios.
- Common data challenges & validation – ensuring model reliability, audit readiness, and regulatory compliance.
- Hands-on case studies – applying CECL models to real-world loan portfolios, including individual large loans and high-volume small-value loans.
- Session 3: CECL Implementation and Regulatory Impact
- Accounting & regulatory impact – understanding ASC 326 requirements and financial statement implications.
- Impact on credit risk management – evaluating loan loss reserves, capital planning, and profitability forecasting under CECL.
- Investor disclosures & compliance – best practices for reporting credit loss estimates.
- Implementation challenges & solutions – integrating CECL models with financial systems, risk management frameworks, and stress testing programs.
- CECL impact on revolving credit, PCD assets, and securitized loans – key modeling considerations and accounting treatments.
- Strategic approaches for financial institutions – optimizing risk-adjusted profitability and regulatory capital under CECL.
- Emerging industry practices – latest trends, regulatory updates, and best practices in CECL implementation.
- Session 4: CECL Quantification and Methodology
- CECL quantification techniques – segmentation, portfolio synergies, and risk-adjusted loss estimation.
- Case study 1 – assessing larger loans on an individual loan basis, including key factors influencing credit loss estimates for high-value loans.
- Case study 2 – analyzing portfolios with small-value but high-volume loans, and applying CECL quantification techniques to estimate total credit loss for the portfolio.
- Model validation & governance – ensuring model reliability, regulatory compliance, and audit-readiness.
- Reasonable & supportable forecasts – key assumptions, macroeconomic factors, and sensitivity analysis for credit loss projections.
- Accounting for refinancing, prepayments, and subsequent recoveries under CECL.
- Challenges in implementing CECL – real-world difficulties faced by financial institutions and strategies for overcoming them.
- Interactive hands-on case studies – applying CECL methodologies to real-world scenarios with a focus on individual loans and loan portfolios.
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Why you must attend?
Are you prepared for the impact of the new Current Expected Credit Loss (CECL) model on your organization? Join our CECL workshop and gain valuable insights into the new accounting standards and how they will impact your organization. This workshop is designed for professionals who are responsible for credit risk management, accounting, and financial reporting, including CFOs, CROs, internal auditors, external auditors, and risk managers.
By attending this workshop, you will learn the key components of the new CECL model, including its scope, objective, and implementation challenges. You will also gain insights into the credit modeling considerations, alternative modeling options, and data requirements needed to successfully implement the new model. Our expert instructors will guide you through a series of real-world examples and group case studies to help you understand the impact of the new accounting standards on credit risk management and profitability forecasting.
In addition, you will learn about the regulatory and accounting impact of the new CECL model, including the disclosures required for investors. Our instructors will also share best practices for adjusting your strategies to maximize return under the new element of forward-looking risk. Don’t miss this opportunity to stay ahead of the curve and learn how to successfully implement the new CECL model in your organization. Register now and join us for this comprehensive workshop.
Teaching Methodology
The teaching methodology for the CECL workshop is carefully designed to ensure that you gain a deep understanding of the new CECL model and how it affects your organization. Our experienced instructors use a variety of teaching methods to make the learning experience engaging and effective. These methods include:
- Interactive Lectures: Our instructors use interactive lectures to deliver the course material in a way that allows you to learn at your own pace while also participating in discussions and asking questions.
- Real-Life Examples: Our instructors use real-life examples to help you understand how to apply the CECL model in practical scenarios. This approach enables you to see how the new standard affects your organization and prepares you to handle complex issues.
- Group Case Studies: Our instructors lead you through group case studies that challenge you to apply your knowledge of CECL to practical scenarios. This approach helps you develop critical thinking skills and prepares you to handle complex credit modeling challenges.
- Breakout Sessions: Our instructors facilitate small group discussions through breakout sessions, allowing you to interact with your peers and share insights. This approach promotes collaboration and helps you build professional connections.
- Assessments: Our instructors use assessments to test your understanding of the course material. This approach allows you to gauge your progress and identify areas where you may need additional support.
Overall, our teaching methodology is designed to help you become proficient in credit modeling and confident in your organization’s ability to implement the CECL model. We are committed to your success and will work with you every step of the way to help you achieve your goals.
Who Should Attend?
The CECL workshop is designed for a wide range of professionals in the financial industry who are involved in credit risk management, accounting, financial reporting, and auditing. This includes, but is not limited to:
- Accounting and Finance Professionals: CFOs, financial analysts, accountants, and other financial professionals who are responsible for the preparation and reporting of financial statements.
- Risk Management Professionals: Risk managers, credit analysts, and other professionals who are responsible for assessing and managing credit risk in financial institutions.
- Auditors: Internal and external auditors who are responsible for reviewing financial statements and assessing compliance with accounting and regulatory requirements.
- Regulators: Representatives from regulatory agencies who are responsible for overseeing financial institutions and ensuring compliance with regulatory requirements.
- Consultants: Professionals who provide consulting services to financial institutions on credit risk management, accounting, and financial reporting.
Whether you are new to the CECL standard or have experience with its implementation, this workshop is an excellent opportunity to deepen your understanding of the new requirements and gain practical insights into how to apply them in practice. Attendees will benefit from the expertise of experienced instructors and interact with peers from various organizations, making this workshop a valuable networking opportunity.
Feedback
Upon completion of the course, all delegates will receive an evaluation questionnaire aimed at gathering valuable feedback. This feedback is crucial to Shasat’s ongoing commitment to improving the quality of its learning solutions. By analyzing the trends in the responses, we are able to continuously enhance and refine our offerings to meet the evolving needs of our clients.
Venue & other info
Our training programs take place at the most prestigious professional training facilities in the city. Our venues have been meticulously chosen and expertly crafted to deliver an unparalleled and sophisticated learning experience. To further elevate your training journey, we will offer an array of refreshments including gourmet tea/coffee, delectable snacks, and a sumptuous lunch to sustain you throughout the course. Your comfort and satisfaction are of the utmost importance to us. One week before the program begins, you will receive comprehensive joining instructions that include the exact venue details.
Please note that accommodation arrangements are the responsibility of the attendee.
Workshop Delivery (Online Programs)
The workshop will be delivered via the WebEx platform. Upon registration, all participants will receive comprehensive joining instructions for the live workshop. This fully virtual event will encompass a live-streamed presentation, personalized networking opportunities, interactive Q&A sessions, engaging polls, and post-event consultation to address specific concerns and support your continued growth.
In-Person Workshop
Please be advised that for all in-person training programs, joining instructions will be sent via email to registered participants one week prior to the program’s commencement. These instructions will provide comprehensive information regarding the venue location, date, and time, as well as other important details such as parking arrangements, dress code, and any necessary equipment or materials. Kindly ensure that you carefully review the joining instructions and follow the guidelines provided to ensure a smooth and well-organized experience during the program.
Changes to the conference
Shasat reserves the right, at its sole discretion, to make modifications to the format, speakers, participants, content, venue location, program, or any other aspect of the conference, at any time and for any reason, without incurring any liability. This policy has been implemented due to recent events such as the Covid-19 pandemic and other jurisdictional restrictions. These modifications may include but are not limited to, changes necessitated by a Force Majeure Event
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Payment
Enroll in our program with ease by choosing from our secure online payment options. You can make a payment through our website using PayPal or Stripe, or opt for a bank transfer, demand draft, or cheque payment. Our payment page will provide all necessary options during checkout. If you encounter any issues, our customer service team is here to assist you. Simply reach out to us with your selected course, and we’ll guide you through the payment process.
We kindly request that you take into consideration any associated bank fees when making your course fee payment. To ensure your participation in the program, payment must be received before the course date. Once we have received both payment and a completed registration form, we will confirm your enrollment in the program. Thank you for your understanding and cooperation.
Group discount
Our company is proud to offer a group discount of 15% for organizations or individuals who book a course for 5 or more participants. To take advantage of this offer and receive a personalized group discount code, please reach out to our customer service desk at info@shasat.com. Our team will be delighted to assist you with the booking process and answer any questions you may have. With this group discount, you can invest in the professional development of your team and drive success for your organization. Don’t hesitate to contact us today to learn more.
Upon successful completion of the training course, each participant will receive a certificate of completion that attests to the number of hours spent in training and serves as a valuable representation of their dedication to professional development. The certificate is not only a symbol of their achievement but also serves as proof of continuous professional development (CPD) and demonstrates their commitment to staying current in their field. We believe that CPD is a crucial aspect of career advancement and personal growth, and are proud to provide our participants with this important document.
For further assistance, we invite you to contact our dedicated customer service team. Our experienced and knowledgeable representatives are available to answer any questions you may have and provide the support you need to make informed decisions. We are committed to ensuring that you have a positive experience and are here to help in any way we can. Please don’t hesitate to reach out to us at your convenience.
In-House Training
Enhance your team’s skills and drive success for your business with our custom In-house training program. Our tailored approach aligns with your specific business needs, offering a cost and time-efficient solution for upskilling your employees. This not only improves their productivity but also positions your company as a competitive force in the market. Transform your investment in employee development into tangible results by choosing our In-house training option. To discuss and learn more about our services, please don’t hesitate to contact our training desk. We’re ready to help you create a bespoke program that’s just right for you.
