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