A strategic CECL compliance solution

Current Expected Credit Loss (CECL) standards compel financial institutions to think about credit risk in new and more timely ways. It requires different bank departments to work together on a continuous basis and maintain data lineage.

OneSumX CECL is a modular solution that can be used to cover gaps in your existing CECL accounting systems. As a strategic platform for full end-to-end CECL compliance or for specific use-cases as needed. Get full data visibility and auditability in an open architecture that easily integrates with external systems. Our solution features centralized data management. It implements data quality checks in a proactive way, to ensure your teams are always using the most trusted data. A single solution that has the flexibility to behave like many smaller ones. It allows data to be shared and manipulated – for analysis, forecasting, budgeting and planning – in ways that conform to the needs of each part of an organization. It has the technical and functional scalability to move firms from a tactical to more strategic approach to manage CECL compliance.

server connected desktops screens icon
Improved operational efficiency

A single source of truth both for your accounting generating, regulatory disclosures and BI reporting. Reduce the time and effort to bring the data to the end users.

laptop workstation checks checklist tick icon
Better insights

Focus on reporting and obtaining insights instead of on data preparation with our end-to-end solution.

coins cash money pile icon
Low risk implementation

Pre-configured USGAAP accounting templates, data classification rules for regulatory disclosures and our domain expert support will reduce implementation effort and time.

people interview laptop desk icon
A strategic solution

Implement CECL with our solution, and gain an excellent foundation to implement additional finance, risk and regulatory use cases in an incremental and cost efficient way.

Current Expected Credit Loss Standards (CECL): what you need to know

The Financial Accounting Standards Board (FASB) has introduced a new impairment model, commonly known as CECL (Current Expected Credit Losses). It’s applicable to the U.S. GAAP based countries such as the United States, Israel, Japan (limited) and Switzerland (optional).

It represented a major shift from the existing incurred loss model and leaves institutions facing a number of new challenges:

  • Instead of recognizing losses when the contract’s carrying amount is not recoverable, CECL requires measurement of expected losses over the entire contractual lifetime of a loan
  • It must take into account a reasonable and supportable forecast of the future
  • Must encompass all facets of the myriad processes
  • All processes should be transparent, efficient and rerunnable
  • Existing models will need to recalibrate or new CECL models developed, with matters being especially complex for institutions that operate across borders.

To do this effectively, an analytical solution is required that comprehensively addresses the particular methodologies and calculations outlined in CECL accounting.

Businessman discussing strategy with female colleagues in office

OneSumX CECL features

OneSumX CECL helps you to fulfil all of the Financial Accounting Standards Board’s (FASB’s) disclosure requirements. Our integrated and fully auditable system not only helps to reduce month-end costs, but also automates classification through flexible business rules and provides an end-to-end view of the CECL process.

Develop and build up a CECL model that can be run in multiple scenarios. Expand the usage and functionality of our modular solution at your own pace. So you can go live on a pragmatic basis, allowing for future solution leverage.

Our CECL solution is part of our comprehensive OneSumX for Finance portfolio which performs all required financial industry-specific calculations and processes. It streamlines accounting from event to disclosure in a fast, transparent and fully-controlled way. And it further supports firms in their strategic planning, budgeting and forecasting through simulations and analytics.

  • Defining data requirements and sourcing

    • Wide contract and event data management capabilities
    • Processes, monitors and generates information on a wide range of financial products and events
    • Covers the entire product life cycle, from the purchase of credit-impaired assets to partial loan prepayment or restructuring.

  • Credit risk assessment

    • Includes capabilities from advanced PD/LGD models through to re-usage
    • Adjusts historical loss methodologies such as vintage analysis, loss rate or net flow rate as proposed in the accounting standard
    • Allows for assessing credit risk on an individual or collective basis, given the similar risk characteristics of the contracts under assessment
    • Incorporates embedded stress testing and scenario management capabilities.

  • ECL calculation and processing

    • Works out the specific compliant Expected Credit Loss calculation methodologies
    • Includes discounted cash flow or a fully advanced PD/LGD model
    • All calculations are possible at the contract level
    • Can incorporate complex expert judgement to achieve the required accuracy in calculations, analysis and control requirements.

  • ECL Qualitative Factor overlay

    • Define and weight qualitative factors and change their input values over time
    • Apply qualitative factors to the PD or loss rate curves
    • Apply management adjustments based on qualitative factors after the ECL calculation.

  • Scalable, flexible and auditable framework

    • Technical and functional scalability to move firms from a tactical towards a strategic solution for CECL compliance
    • Combination of term structures based on forward-looking and historical extrapolation methodologies
    • Expected Credit Loss calculators are flexible enough to work with expert judgement or macroeconomic scenarios.

  • Disclosure FASB requirements

    • Combines the lifecycle information on each individual financial instrument with a transparent and auditable contract level CECL accounting sub-ledger and powerful reporting tools
    • Offers full transparency and traceability that fully satisfies internal and external audit needs, including all disclosures as defined by the FASB.
A reflection of clouds and sky in a mirrored glass building,

Regulatory newsletter

From evolving Basel standards to emerging regional regulations, our curated content keeps you well-prepared for what lies ahead. Explore timely updates, all in one place.
Subscribe to Newsletter
FRR Webinar Signup

OneSumX events
and webinars

Keep up to date with news, webinars and events in financial risk, regulatory & reporting. Explore detailed analysis, expert commentary and perspectives — all in one place.
Sign-Up Today
Expert insights and related solutions

Expert Insights

  • ICAAP: a strategic opportunity amid evolving APRA expectations
    Article
    Compliance
    Finance
    December 10, 2024

    ICAAP: a strategic opportunity amid evolving APRA expectations

    Elevate banks' capital adequacy with ICAAP and ILAAP. These frameworks ensure compliance, align with Basel III requirements, and enable robust risk management strategies for sustained growth and operational excellence in banking.
    Learn More
  • EMEA Q4 finance, risk and regulatory update webinar: EBA’s 4.0 reporting framework & MiCAR reporting for crypto-assets
    Webinar
    Corporate
    Finance
    December 05, 2024

    EMEA Q4 finance, risk and regulatory update webinar: EBA’s 4.0 reporting framework & MiCAR reporting for crypto-assets

    Delve into the latest developments in the EBA Reporting Framework, understanding how these changes will affect your financial institution’s reporting and compliance requirements.
    Learn More
  • Is your IFRS 9 ECL solution up to standard?
    Article
    Compliance
    Finance
    November 27, 2024

    Is your IFRS 9 ECL solution up to standard?

    Optimize your IFRS 9 ECL solution. Validate data accuracy, governance, and flexibility with our comprehensive healthcheck. Stay compliant with IFRS 9 for banks while managing credit risk effectively.
    Learn More
  • Navigating APRA’s revised IRRBB requirements
    Article
    Compliance
    Finance
    November 25, 2024

    Navigating APRA’s revised IRRBB requirements

    Learn how Australian and international banks can manage APRA’s APS 117 updates. This article covers IRRBB, financial data governance challenges, and compliance with APRA banking regulations under tight deadlines.
    Learn More
  • IFRS 9
    Solution Detail
    OneSumX IFRS 9
    A solution that implements the full International Reporting Standard 9 (IFRS 9) providing an established framework that manages IFRS calculations, accounting generation, and processing, ensuring compliance now and for the future.
    Learn More

Downloads

Browse all OneSumX FRR downloads
OneSumX CECL Solution Primer
OneSumX CECL Solution Primer
CECL Evaluation Worksheet
CECL Evaluation Worksheet
OneSumx for Finance Overview Brochure
OneSumX for Finance Overview Brochure
Request More Information

  • No obligation. Talk to an expert about your specific business and implementation needs.

  • Your details won't be shared. We'll only contact you about OneSumX FRR solutions.

  • Opt out, or change preferences, at anytime.

Back To Top