Five CECL Model Risk Resolutions for 2023
CECL | Model Validation | MRM | MRM Framework
How CECL Drove Model Risk Management into the Spotlight
CECL model development stole the show in 2022, but 2023 will be the first time many institutions will put the new model into production. Congratulations on making it this far on your CECL journey, and best of luck with your Q1 implementations!
Model Risk Management (MRM) is now rising into the spotlight as a byproduct of CECL. For those with an MRM framework in place, onboarding CECL and incorporating it into a broader risk management program should be a straightforward path. However, those without an MRM program are finding the onboarding process more difficult—they are missing crucial documentation and controls, among other broader risk-mitigating processes.