Securities Litigation Services
RiskSpan provides analysis and model validation services in support of law firms handling securities litigation for financial services and capital markets clients. We specialize in analyzing bond and residual assets valuation methodologies, underlying modeling assumptions, and internal controls to determine whether the valuations of individual securities or whole portfolios were reasonable and based on sound, accepted industry practices. RiskSpan also performs financial forensics on investment portfolios to provide complex securities valuations.
RiskSpan's approach to model validation encompasses a holistic review of the modeling process for all bond and residual asset classes – CDO/ABS/RMBS/Esoteric. We maintain a suite of proprietary and commercially licensed models to benchmark client models and to create an independent valuation of complex securities, as well as review sales, trading and risk management/oversight practices. Our specific services include:
- Utilize proprietary models to conduct financial forensics
- Perform data integrity analysis including import/export reconciliation
- Review model calculations (code review, reverse engineering)
- Assess internal controls
- Analyze underlying modeling assumptions (benchmarking)
- Review data quality programs
- Recommend defensible methodologies
- Review documentation to ensure audit-ready quality
- Create valuations using our independent proprietary models
- Conduct back-testing