ALLL Estimates

Unleash the Power of your Loan Data to Optimize Loss Provisioning.

Key capabilities:
  • Leverage data from existing internal risk rating systems to inform institution-specific estimates of credit loss.
  • Provide forward-looking credit loss estimates on a loan-by-loan basis.
  • Estimate loan default probabilities using an Internal Ratings Based approach.

ALLL Estimate Spreadsheet

ALLL — Powered by CRMA®

Our risk-migration based approach leverages your internal risk rating system to develop reliable, repeatable and institution-specific credit loss estimates. Coupled with impairment-specific reserves, our CRMA model can also apply qualitative and environmental factors to round out the reserve estimate.

How?

Our patented Credit Risk Migration Analysis estimates formula-based (non-impaired) reserves using Probability of Default ("PD") and Loss Given Default ("LGD") parameters. These are informed by historical risk-grade migration and net-charge-off data.

NOTE: All analyses are based on your existing risk grading system, past due data, and net charge-off data.

Qualitative & Environmental

QE Economic Conditions

Our ALLL model includes a Qualitative & Environmental (Q&E) module that offers a consistent and efficient process for documenting management judgment around reserves. We provide automated visual context culled from public and proprietary systems in order to simplify and standardize the Q&E process for management.

Q&E is intended to help proactively identify reasons the future may differ from the past and ensure such risk is reserved for and monitored. As such, Q&E is part-and-parcel of your bank’s enterprise risk management.