Sageworks: CECL - Vendor Due Diligence
Posted: 6 March 2018 | Source: Sageworks
Although many institutions have already discovered the value of a dedicated software platform to accomplish their current ALLL processes, nearly all institutions would agree that modernizing their approach has material benefits. As the leading ALLL provider, Sageworks’ solutions have been the subject in a host of due diligence exercises and much has been learned as a result.
In addition, Sageworks’ ALLL software is a CECL-ready solution. Through development and the execution of many reserve calculations, Sageworks is positioned to provide actionable guidance on due diligence and CECLreadiness. One thing is certain, Accounting Standards Update 2016-13 (CECL) will require more inputs, assumptions, analysis, and support making the option to modernize significantly more attractive.
The following recommendations are not intended to replace regulatory guidance as it relates to vendor management. Rather, the intent is to provide an understanding of a CECL-ready solution and the critical elements that such a solution should contain for tactical due diligence.