FI Insight Featured in AGA Journal
FI Consulting thought leaders Robert Silverman and Scott Inderbitzen along with Tom Coleman, former CFO of the Federal Financing Bank, collaboratively authored a feature article for the Spring 2019 AGA Journal. The article, “No Budget Left Behind” provides insight on how collaborative acquisition planning, better visibility, and the right technology can beat the end-of-year blitz.......
Keys to CECL Validation Success in 2019
BY MARK JORDAN, FI CONSULTING At present, financial institution SEC filers are busy building and testing their internal models and processes to calculate reserves under the new current expected credit loss (CECL) accounting standard. The industry is entering a critical phase for teams to validate loss models and aggregate, analyze, and share preliminary results with......
BY BEN MURRELL, FI CONSULTING As many financial institutions enter into CECL parallel runs in 2019, they need to have a solid handle on their loss forecasting model inputs. To ensure compliance with the standard, regulators and auditors will be scrutinizing these inputs and assumptions, including severity, or loss given default (LGD). Regardless, whether a......
FI Consulting Releases Acquisition And Spend Planning Solution
Acquisition and Spend Planning (ASP) empowers collaborative planning, management, and end-to-end visibility of agency procurement pipelines to avoid end of fiscal year contracting bottlenecks commonplace across the federal government. ARLINGTON, VA – October 17, 2018 – FI Consulting is pleased to announce the release of its Acquisition and Spend Planning (ASP) software-as-a-service (SaaS) solution to......
Managing Profitability Under CECL Through Loan Pricing (Part 2)
BY BEN MURRELL, FI CONSULTING Part 2: Applying the Conceptual Loan Pricing Framework to CECL As organizations implement CECL, a key question is how CECL estimates should factor into loan origination and pricing decisions. In Part 1 of this series, we illustrated the mechanics of pricing with a hypothetical loan. In Part 2, we use......
Managing Profitability Under CECL Through Loan Pricing (Part 1)
BY BEN MURRELL, FI CONSULTING Part 1: Defining a Conceptual Framework for Loan Pricing Background As organizations implement CECL, a key question is how CECL estimates should factor into loan origination and pricing decisions. Linkage is important because CECL will require that expected losses be reserved at time of origination. Correctly pricing in new reserves......
White Paper: Four Pitfalls to Avoid During CECL Implementation
BY MARK JORDAN, FI CONSULTING Building a durable, defensible Current Expected Credit Loss (CECL) process that reflects your organization’s view of its credit risk requires painstaking focus on the fundamentals of building and defending your bank’s own view of its risk exposure. This requires bringing a disciplined and methodical approach to building the “case” for......
A Framework for Multiple Economic Scenarios Under CECL
BY ROBERT CHANG AND MARK JORDAN, FI CONSULTING Background We present a pragmatic approach to generating multiple economic scenarios for the new FASB current expected credit loss (CECL) accounting standard. While the guidance does not explicitly mention the number of scenarios that should be used when measuring expected credit losses, financial institutions should consider a......
Four Key Questions When Estimating Current Expected Credit Losses (CECL)
BY ROBERT CHANG AND MARK JORDAN, FI CONSULTING Under the FASB current expected credit loss (CECL) accounting standard, public entities are required to estimate losses over the contractual term of the financial asset or group of financial assets. However, this requirement is eased to allow entities to make or obtain “reasonable and supportable” forecasts of......
Banks with Ontology and Knowledge Graph Capabilities well-positioned to meet…
FI Consulting’s Mark Jordan co-authored a blog with Element 22 discussing the importance of data governance and accessibility. Recent surveys find that many institutions are still in the planning stage for CECL, and that obtaining data necessary to support model development is among their most pressing tasks. In the recent past certain banks have met......