Firms that proactively implement a CECL process that is controlled, efficient, collaborative and sustainable will find themselves with a competitive advantage over time. The long-term benefits of this holistic approach are multifaceted:
- Fewer resources needed for regular monthly/quarterly ALLL production
- Faster turnaround to address questions from management, auditors and regulators
- Reduced opportunities for audit or regulatory findings
- Fewer key person risks
- Greater flexibility to adapt to maturing interpretations of the standard and emerging best practices
- Reduced maintenance costs
- Improved collaboration between development, validation and production teams
