Our primary service – the high level Valuation Risk Review (VRR) – is targeted at Directors of financial firms who may not have the highly specialist knowledge to appropriately identify and understand the Valuation Risk to which their company is subject. Current financial and accounting regulations require that companies regularly review this, and out service is designed to ensure that Boards are fully, and independently, briefed on the issues.
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The VRR consists of two work packages:
1. All instruments in a company’s investment or trading portfolio are analyzed and classified according to our proprietary Valuation Risk criteria
- Red = high risk
- Orange = medium risk
- Green = low risk
The higher the Valuation Risk, the more attention needs to be paid to valuation methods, processes, controls and reporting.
2. The specific valuation methods, processes, controls and reporting adopted and implemented by the firm are reviewed and assessed for appropriateness in relation to this portfolio. Particular attention is paid to external sources used, internal methods deployed and valuation controls, such as policy on exceptions.
The results of this analysis are conveyed to the Board in a detailed report and subsequent face to face briefing.
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