Shows
Credit Risk ReadyGauges the Board and Management Should Be Watching While Emerging From the Recession | Tim HarringtonAs we emerge from the Global Pandemic Recession, the Board and Management have critical indicators to watch closely. Some of them are the usual, some of them are specific to recovery from a recession. Some of them will worry the regulators. In this episode, we'll discuss what to keep an eye on as we emerge from the recession. Resources: Book: A Credit Union Guide to Strategic Governance: https://forteamresources.com/products/books/ Book: Eisenhower on Enlighted Leadership: https://forteamresources.com/products/books/ Blog: https...2021-05-2716 min
Credit Risk ReadyRisk Appetite: How the Board Decides, Defines, and Communicates Their Choice | Tim HarringtonRisk appetite is a responsibility of both the Board of Directors and of Management. How exactly does it get decided, defined and communicated? How do Directors and Management insure they are in sync? And how do they decide it is time to intelligently adjust the 'diet'? Resources: Book: A Credit Union Guide to Strategic Governance: https://forteamresources.com/products/books/ Book: Eisenhower on Enlighted Leadership: https://forteamresources.com/products/books/ Blog: https://forteamresources.com/tims-blog/ Lenders’ Tax Analyzer Software: https://forteamr...2021-04-1520 min
Credit Risk ReadyRegulators and the Pandemic Recession: Guidance with flexibility? | Rob NewberryIn this episode, we focus on the regulators. What will they expect in order to demonstrate we are making 'prudent' judgments and identifying which borrowers or prospective borrowers are experiencing a 'short-term' setback rather than a complete melt-down? And what else are they paying attention to...and helping us with? How can we document our thinking and show the examiners our prudent steps to mitigate risk during this downturn? About Rob Newberry: Rob Newberry has over 20 years of experience in the financial services industry including 15 years at Wells Fargo in strategic and leadership roles. He is a Senior Ad...2020-09-1715 min
Credit Risk ReadyThe Pandemic Recession: How to Shift Your Bank Strategy (Or Not) | Paula King CPAHow should bank strategy shift in the challenging pandemic landscape? Have boards and leadership gotten complacent during the best of times? And what changes are opportunity-focused rather than just challenge-focused? Understand strategy versus tactics Plan for growth even as you protect the bank Revisit your risk appetite and consider taking on more risk About Paula King: Paula King, CPA, is Senior Advisor for Abrigo Advisory Services, part of a team of subject matter experts assisting financial institutions nationwide in the interpretation and application of Current Expected Credit Loss (CECL), credit processes, policies and procedures, and model validations. Paula has held exe...2020-09-1017 min
Credit Risk ReadyLoan Coding, CECL, and the Pandemic: Oh My! | Paula King CPADive into some of the details in loan coding, CECL and how they both are impacted by the pandemic. Segments are getting more granular, stress-testing needs a different approach, and qualitative analysis is murkier than ever. Topics discussed in this episode: 3:48 Significant changes in segmenting 6:18 Don't get too crazy with your segments 6:48 The difference between segments for CECL vs stress testing 8:32 Changes in CECL segments, forecast and qualitative analysis 9:30 The length of the forecast horizon 10:20 Documentation for CECL 12:50 Farm lenders are not getting a pass in this recession 14:08 Qualitative Adjustments 17:05 What can you rely on? About Paula King: Paula King, CPA, i...2020-08-1319 min
Credit Risk ReadyBottoms up Stress Testing: How Front Line Lenders Can Reassess Current Loans | Rob NewberryWe will focus on loan level stress testing with an understanding of pay vs save strategies, a variation of the matrix approach, questions to ask, and how to unwind if you have to. How to answer the question: does this borrower have enough fuel to stay in the air or enough runway if they have to land? Topics discussed in this episode: 2:54 Pay strategies versus Save strategies 5:05 Are you comfortable extending the runway? 6:19 A matrix approach, but different 8:38 Dual loan grading system, then and now 11:00 How the write-up should change 12:20 Questions to ask the borrower 15:48 How has the customer helped the...2020-07-3020 min
Credit Risk ReadyThe PPP Mad Dash Continues: Forgiveness FAQs | Paula King CPAThe PPP loan program was rolled out and implemented in haste, without the guidance that bankers generally rely on. As we build this airplane in mid-flight, Paula King CPA will give us actionable insight, including how to avoid lender liability and the bright spot in simplifying the forgiveness application process. Topics discussed in this episode: 1:45 PPP is a moving target. 4:17 Issues with eligibility even past the forgiveness process 6:26 Document your thinking 8:05 Trustworthy source for up-to-date info on eligibility and forgiveness 9:32 Can apply for forgiveness up to maturity date 11:03 Why-applications for PPP forgiveness may be spread out 11:26 Form 3508-EZ will sim...2020-07-1623 min
Credit Risk ReadyPortfolio Stress Testing as the Economy Worsens | Rob NewberryWe are zeroing in on stress testing at the portfolio level as the country melts down into the pandemic recession. Consider if you need to up your game, increase stress testing frequency, and better understand how this recession is the same, but different. Rob explains why a 'Reverse' stress test should be your first step and what to do next. Topics discussed in this episode: 2:25 We should be prepared for this pandemic 5:42 A reverse stress test: What and why? 6:34 Dive deeper to segment your analysis 9:52 Frequency of stress testing in this environment 11:54 Understand your concentration risk 14:20 Lower your...2020-07-0918 min