Main Session – Accounting, the Regulators and Models
Facilitated by John Hurlock, President, SMARTER Risk Management
With the introduction of CECL, the CFO now has responsibility for either running or reporting on the results from models that have a significant impact on the financial institution. This impact is both financial and regulatory. The models include;
- Asset Liability Management (ALM)
- Liquidity
- Current Expected Credit Losses/Allowance for Credit Losses
- Reserving for Securities/Investments
- Pre-purchase analysis
- Strategic Plan
- And more specific purpose models
For this session, we will go over the following;
- What is a model and how is it managed?
- Who is responsible for the models at the Bank?
- The difference between ad hoc and repetitive models
- Top down versus bottom up models
- Regulatory views, from outreach to criticism
- Managing the cost of models, including model vendors and model validators
- The future, Artificial Intelligence and Machine Learning
At the end of this session, you will have a deeper understanding of the new rules of model risk management and how these rules affect you. And you will understand ways to manage the increased costs and responsibilities that go along with these models.