Press
Initial Sageworks and Crowe Horwath webinar on ALLL model validation draws nearly 600 financial professionals
RALEIGH, NC, (August 5, 2014) — With the release of new accounting standard regulations expected later this year, many banks and credit unions are already considering how to best overhaul or enhance their allowance for loan and lease losses (ALLL) processes to prepare for the significant changes. Sageworks, a financial information company that provides credit-risk management solutions to banks and credit unions, in conjunction with Crowe Horwath LLP, one of the largest public accounting and consulting firms in the United States, aim to guide the financial community on how to best prepare for these upcoming changes. Together, the companies recently hosted the first in a series of new educational seminars on the topic of ALLL, and nearly 600 bankers attended. Led jointly by Crowe Horwath and Sageworks professionals, the webinar, entitled, “ALLL Model Validation: Are You Compliant with the 3 Main Components?,” offered insights on the three primary components of model validation used to accurately estimate a bank’s ALLL.
Given the popularity of the webinar, it is no surprise that of the nearly 600 webinar attendees, more than one quarter polled – 27 percent—noted that their biggest concern about the ALLL is whether their model is accurate. Another 21 percent of the financial professionals cited utilizing the correct loss methodology as their primary concern.
“We anticipate changes to the standard for accounting for impairment of financial assets is coming soon,” commented Ryan Michalik, Manager, Credit Risk Consulting Practice, for Crowe Horwath LLP. “The update is likely going to require financial institutions to revise ALLL models, methodologies, and data requirements. Implementation of automated systems and a sound model risk management framework, including validation of current models, will be key in preparing for the changes.”
The ALLL Model Validation webinar is the first in a three-part series cohosted by Sageworks and Crowe Horwath as the firms update bankers on the intricacies associated with proposed allowances for loan and lease losses regulations. The second webinar, “ALLL Roadmap: Are You Ready for the Future?,” is Friday, Sept. 12 at 2 p.m. EDT. This webinar will cover what financial institutions can do in the short-term, mid-term and long-term to prepare for the future of the ALLL. A third discussion, “Preparing for Basel III,” will take place at Sageworks’ Third Annual Risk Management Summit in Nashville, Tenn., Sept. 25. This conversation will also be offered via webinar in October for professionals unable to attend the Summit.
For more information and to register for upcoming webinars, please visit the Sageworks webinar homepage.
About Sageworks
Sageworks is a financial information company that provides risk management, financial analysis and business valuation solutions to accounting firms and financial institutions. Visit www.sageworks.com to learn more.