Key Role of Risk Ratings under Current and Future GAAP
A look at how risk rating systems can aid in CECL preparation
The importance of a sound risk rating process continues and possibly grows in the coming years as financial institutions grapple with the increased emphasis on estimating credit losses. With Basel III focusing more attention on credit risk management, and the more granular review of loans required by the FASB’s CECL model, financial institutions can likely expect to see an increased emphasis by examiners on the importance and effectiveness of risk rating systems.
Download to learn:
- The role of risk ratings under current GAAP
- How to leverage risk ratings in portfolio management
- The impact risk ratings will have under CECL