Empowering Financial Institutions

Looking at the phrase “risk appetite”, there is more to it than just looking at the types of loans the credit union is willing to lend money for.  Step one would be to determine their market area and the types of industries it determines is a part of their overall risk strategy.  Step two would be to establish on-going risk management to underwrite the credit and step three to establish effective portfolio management after a loan is made. 

There certainly are several schools of thought as to what needs to be addressed in preparation for CECL. At this point in the game, implementing CECL is starting to become a reality. Most banks have started their preparations but come to a screeching halt when faced with tackling what is quickly becoming known as the hardest challenge of CECL: defining economic drivers.

My advice? Do the prep work and tackling the hard stuff won’t seem as intimidating.

It’s no secret that recruiting and retaining top talent (regardless of age) is absolutely imperative if your organization wishes to effectively compete in today’s rapidly changing business environment.