by Dr. Jimmie Lenz | Oct 25, 2018 | CECL
Accounting and regulatory changes often require resources and efforts above and beyond “business as usual”, especially those like CECL that are significant departures from previous methods. The efforts needed can be as complex as those for a completely new technology...
by Philip Lawton | Oct 12, 2017 | Regulations
Determining whether an unimpaired asset’s credit risk has meaningfully increased since the asset was initially recognized is one of the most consequential issues banks encounter in complying with IFRS 9. Recall the stakes: The expected credit loss for Stage 1 assets...
by Dr. Jimmie Lenz | Oct 12, 2017 | Sales Practices
Should you be monitoring your sales activities to detect anomalous behaviors? The use of sales incentives (commissions, bonuses, etc.) to motivate the behavior of salespeople has a long history in the United States. We all hope to assume the initial structuring of...
by Philip Lawton | Sep 5, 2017 | Regulations
Calculating expected credit losses under IFRS 9 is easy. It requires little more than high school algebra to determine the aggregate present value of future cash flows. But it is not easy to ascertain the key components that are used by the basic equation—regardless...
by Philip Lawton | Apr 27, 2017 | Business Analytics
The Federal Reserve and the OCC define model risk as “the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports.”[1] Statistical models are the core of stress testing and credit analysis, but banks are increasingly...
