4 Steps for Integrating CECL and Other Risk Management Models

Alignment of critical assumptions and inputs across stress testing, asset/liability management (ALM), and the calculation of expected credit losses is fundamental to a holistic view of risk management. In addition, institutions that identify and manage risk most effectively will outperform their peers in terms of financial performance while also maintaining safety and soundness. In this infographic, learn four ways financial institutions should ensure their allowance for credit losses models under CECL are aligned with the risk management processes of stress testing and ALM.