Current Expected Credit Loss (CECL) Validation
Overview
QuantyPhi's CECL Validation service is designed to ensure your credit union's compliance with the Current Expected Credit Loss (CECL) accounting standard. This comprehensive service includes a thorough review and validation of your CECL processes, helping you navigate the complexities of CECL implementation with confidence.
With QuantyPhi’s CECL Validation service, you can be confident that your credit union’s CECL processes are robust, compliant, and effective. We understand the unique challenges faced by credit unions and are committed to providing tailored solutions that enhance your financial stability and performance.
For more information on CECL regulations, visit the NCUA’s Frequently Asked Questions page.
Key Benefits
Full Evaluation of CECL Methodologies: We analyze the methodologies you use to estimate expected credit losses, ensuring they are appropriate for your credit union’s specific circumstances. Our team reviews your modeling approaches, assumptions, and data inputs to ensure they meet industry standards and best practices. Tailored Solutions: QuantyPhi reviews your CECL policies and procedures to ensure they are comprehensive, well-documented, and consistently applied. We provide recommendations for improvements to enhance the effectiveness and efficiency of your CECL processes. Expert Validation: Our validation process includes a thorough review of your CECL calculations to ensure accuracy and reliability. We review your model input data and assumptions, test the model output for reasonableness, identify any discrepancies, and provide actionable insights to address any issues. We further test your process for identifying and calculating individual, non-pooled loans and review your process for evaluating a model vendor. | Comprehensive Review: We conduct an in-depth analysis of the risk factors affecting your credit portfolio, ensuring that all potential risks are accurately identified and assessed. This includes evaluating historical loss data, economic conditions, and borrower characteristics. Regulatory Compliance: Our team ensures that your CECL implementation aligns with all relevant regulatory requirements. We stay up to date with the latest regulatory changes and guidance, helping you navigate the complex compliance landscape with confidence. Effective Governance: Effective governance is crucial for CECL compliance. We review your governance framework to ensure it supports accurate and reliable CECL calculations. This includes assessing the roles and responsibilities of your CECL governance team, as well as the effectiveness of your internal controls. |
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