CECL Run Management

OFS Loan Loss Forecasting and Provisioning application come with a seeded Run to support the computation of Current Expected Credit Loss (CECL) through any of the multiple methodologies available, as required by the Financial Institution. The CECL Run begins with subprocesses that help in data load, obtaining data from the multiple product processor tables. Post data load, certain key dimensions which are non-standard or external data formats are converted to standard or internal data formats, to improve ease of handling the accounts through common rules or metadata. The run then consists of processes that compute the Lifetime Expected Credit Loss values of both the drawn and undrawn portions of each account, using an approach based on the methodology assigned. Upon successful execution, the results are stored in multiple reporting tables - at both accounts and aggregate levels.

The aggregate tables then allow further computations to be performed to adjust the reserve required values based on a separate feature - Reserve Adjustment Computation.

The application also displays the execution status of the Run through the UI. For more details, see the Process Modelling Framework section.

Note:

The Preferred Segment Type Code must be updated in the Preference table for the successful execution of the Run. If you do not want to use Segments as a Dimension, the related Processes must be removed.