SRA Incorporates CECL Accounting In Watchtower Forward-Looking Risk…

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Strategic Risk Associates (SRA) has entered into a joint venture with CRF Advisors to deliver a cloud-based, fit-for-client CECL software solution. CECL is the new GAAP accounting standard for recognizing credit losses in loan portfolios. Known as “CECL Watchtower”, the service is designed to fit the needs of small financial firms as well as large, more complex credit providers.

Consistent with regulatory guidance on the new standard, SRA encourages clients to begin implementation now to understand how adoption will impact reportable financial performance and capital. Early adoption also allows sufficient time for board-level strategic review, and can facilitate positioning versus competitors.

CECL Watchtower immediately benefits financial institutions in several ways:

  •     Provides an implementation roadmap with a clear starting point and data requirements
  •     Identifies the optimum and most practical methodology considering credit risk profile, GAAP, and interagency policy
  •     Delivers intuitive reporting and compliant documentation with app-like, cloud-based software

“Our joint venture with CRF Advisors gives Watchtower another arrow in the forward-looking risk quiver. CECL’s shift to life of loan loss versus historically incurred is another opportunity to provide forward looking indicators to stakeholders and improve client resiliency and agility. We are pleased to have CECL Watchtower as part of our integrated risk ecosystem as another key component to the SRA Watchtower risk hub,” said SRA Partner Bert Knotts.

“We looked carefully for a partner who could make our CECL solution part of a technology-enabled central nervous system monitoring the health of an organization. When we saw Watchtower, we knew this was the advanced and fit-for-purpose risk aggregation engine we wanted to be part of.” said Ted Ahn, President of CRF Advisors.

About Strategic Risk Associates
Strategic Risk Associates is focused on helping financial firms measure and accelerate performance by aggregating and analyzing key business intelligence and optimizing informed risk taking. Team members have backgrounds as financial industry executives and regulators and decades of consulting and advisory experience supporting growth, quantifying risk, and designing best practice methods, workflows and processes for continuous improvement. For additional information about SRA or Watchtower, please visit

About CECL Watchtower
Built by subject matter experts with decades of experience helping financial firms balance risk versus reward and optimize performance against key objectives, CECL Watchtower is a cloud based fit-for-client life of the loan loss estimate solution. CECL Watchtower complies with accounting and regulatory requirements and is designed to give clients a competitive advantage.

About CRF Advisors
CRF Advisors is a credit risk management firm that services financial institutions, non-profit organizations, and financial services companies. Team members assist clients with loan portfolio credit reviews and portfolio stress testing. Specialties include implementation of interagency compliant ALLL methodologies, valuation and accounting of impaired loans, TDR’s, and other real estate owned. The firm also provides financial statement preparation services. For more information, visit

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