We have all heard the timeless phrase, “You can’t teach an old dog a new trick!” Popular wisdom has it that the older we get, the harder it is for us to change our habits or acquire new skills. A lot of us are probably guilty of being hesitant or even somewhat resistant toward changing how we do things in our daily work and personal lives, especially when we have been doing it the same way for a long time.
Despite whether this idiom really rings true, the reality is we are generally faced with the increasing likelihood of having to learn and implement new concepts, rules, principles, or technology tools in order to keep pace with broadening regulatory guidelines or updated accounting standards. In recent years, the regulatory reform implementation has added numerous new “tricks” to learn—such as mortgage reform regulations and Basel III capital requirement. These and others have forced many working in the financial institutions industry to sort through the complexities and disseminate responsibility for the changes to the appropriate levels within their organizations.
Not to be outdone by the regulatory bag of new tricks, those of us focused on the financial reporting side of the fence have recently received from FASB the long anticipated set of updated accounting standards—the CECL model—which impacts how financial institutions will compute and evaluate the adequacy of their allowance for loan loss reserves. Fortunately, FASB gave us some time to sort through the core concepts and grasp the newer way of doing things under CECL before they become effective.
To assist with navigating through the wide array of new tricks, Wipfli’s Financial Institution practice is dedicated in offering regular webinars, articles, and training forums focused on sharing our professional insights and helping educate financial institutions on many of the new regulatory and accounting standards being put into place. For a recent sampling, click here to read our recent article on the new CECL model. I also recommend regularly checking out Wipfli’s Financial Institution’s website for upcoming educational opportunities.
Who says you can’t teach an old dog a new trick!