“Adjusting Your Historical Data Under CECL – Qualitative Factors Run Amuck” by Michael Umscheid, President and CEO of ARCSys, discusses the importance of considering both quantitative and qualitative factors when adjusting historical data under CECL. Companies are required to take a holistic view of expected losses and not rely solely on historical data. Both quantitative and qualitative factors are used to estimate expected credit losses and need to be considered for adjustments to each loan pool’s data to ensure it represents the current risks. The CECL standard requires considering various components, such as internal and external information, differences in current asset-specific risk characteristics, and historical loss information, to adjust historical data. This Whitepaper is a valuable resource for financial institutions to understand the process when considering adjustments to historical data under CECL.