Readiness assessment

Steering committee charter and project scope

The first step is to bring together all internal stakeholders, decision makers, and business process owners to educate on the specific changes required by CECL and develop an expectation of project scope and high-level phasing and timing.

Accounting rule update

We can help provide an overview of the accounting changes under CECL, including position papers, policies, training, and evaluations of accounting options under the new standard.

Risk modeling

We can help assess your existing credit risk models used to forecast credit losses or economic capital to determine the gaps and potential leverage points to determine what is required for your institution to get your current modeling methodology CECL compliant and also make enhancement recommendations.

Data discovery and transformation

We can help with credit, risk, and finance data discovery, including sourcing, mapping, extraction, transformation, and loading, using KPMG’s proprietary data layout and transformation tools, which can help accelerate this critical phase and mitigate the inherent risk.

Quantitative and qualitative impact assessment

We can help develop a high-level estimate of CECL’s impact on your organization and its bottom line, including a gap analysis.

Strategic options

We can help assess and recommend strategic options given your portfolio attributes, risk appetite, capital planning requirements, regulatory and external audit constituency, and budget.

High-level design

We can help create CECL methodology design, implementation plans, and controls that are tailored to your business model, balance sheet, and capital planning.

Roadmap and budget

We can assist with project planning, milestones, and tollgates, based on our project plan template forged with real-world engagements and tailored for your business model, risk appetite, balance sheet complexity, and capital planning requirements.

*Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.  KPMG Global Credit Loss Accounting (gCLAS™) services are not permissible for KPMG audit clients and their affiliates.