RS Allowance Suite

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Designed by CPAs, Statisticians, and Technologists

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The RS Allowance Suite streamlines audit-ready credit loss accounting across all asset classes under the new accounting standards. Specifically, we solve Accounting Standards Codification (ASC) 326-20 (credit losses on financial instruments measured at amortized cost, or “CECL”), and ASC 326-30 (credit losses on available-for-sale (AFS) debt securities). RiskSpan has partnered with S&P Global Market Intelligence to provide this comprehensive coverage for loans, debt securities, and other financial instruments with credit risk.

From data intake through turnkey reporting, with macroeconomic scenario definition, prepayment and credit model selection, and cash flow and accounting engines in the middle, the RS Allowance Suite with S&P Global Market Intelligence credit models covers:

  • Available-for-Sale (AFS) Debt Securities
    The RS Securities Allowance Application covers all debt securities including corporates, sovereigns, munis, and structured products. The Application leverages RiskSpan’s mature securities infrastructure, trusted by fixed-income investors for decades for pre-trade forecasts and risk metrics. The Application first screens AFS securities for impairment. To generate expected credit losses on impaired securities, the Application enhances customer-provided data (CUSIP, fair value, cost basis, and purchase yield) with bond data feeds and applies predictive models and our cash flow engine. Finally, our accounting rules engine applies ASC 326-30 accounting rules to generate the prescribed outputs, including disaggregation of credit losses from holding gains and losses. Structured products are especially difficult for many institutions and vendors. With a seamless integration to Intex, the RS Securities Allowance Application solves structured products along with corporates, munis and sovereigns for comprehensive and scalable coverage.
  • Held-to-Maturity (HTM) Debt SecuritiesIn addition to covering AFS debt securities, the RS Securities Application (within the RS Allowance Suite) also covers HTM debt securities. The Application enhances customer-provided data (CUSIP and book value) with bond data feeds and applies credit models and our cash flow engine. Finally, our accounting rules engine applies the ASC 326-20 (“CECL”) to generate the prescribed outputs.
  • Loans and Other Assets with Credit Risk Carried at Amortized Cost
    The RS Loan Allowance Application covers loans and all other financial assets (other than securities) measured at amortized cost, including reinsurance, receivables, financial guarantees, and trade receivables. The RS Loan Allowance Application streamlines portfolio data intake, macro scenario composition and selection, credit model selection, “Q-factor” (management adjustment) application, and generation of turnkey reports. The Application enables pooling of assets based on similar credit risk characteristics. Partnered with S&P Global Market Intelligence, the RiskSpan Application features S&P Global Market Intelligence’s world-class credit models for C&I and CRE loans, RiskSpan’s trading-quality Resi Model, and practical methodologies and custom modeling capabilities for all other asset classes.

Our consulting team is available during onboarding to ensure seamless data integration and user training. The RS Allowance Suite covers your entire portfolio within a single, easy-to-use platform.

We’re Different

CECL is new to many.

Not to us.

Core Competency

Experts in the life-of-assetmacro-conditioned credit modeling that CECL requires. 

Complete Package

Technology solution backed by experts in data, modeling, and accounting. 

Depth of Expertise

In-house statistical modeling team experienced in all asset types. 

Scalable Solution

Tailored solutions so you’re not paying for functionality you already have. 

What’s Your Challenge?

Let us meet it.

Need Proxy Loan Data?

  • Tour our data library, covering all asset classes, back to 1980  
  • Get documentation to justify proxy data 
  • Establish process to transition to internal data later 

Need to Adjust Your Historical Loan Losses?

  • Use your data to define historical loss experience
  • Feed macro scenarios through our macroeconomic overlay models to adjust your historical performance rates

Reports

The RS Allowance Suite delivers comprehensive, turnkey reporting; including: 

  • Model diagnostics
  • Required disclosures
  • Explanatory board reports
  • Integrated BI tools for custom analysis

Something Else?

Something Else? 

  • We’ve probably heard it. Give us a call! 

CECL Basics

What is CECL?

CECL stands for Current Expected Credit Losses, and is shorthand for ASC 326-20, which provides accounting standards for credit losses on financial instruments measured at amortized cost. A related ASC Subtopic is ASC 326-30, which provides accounting standards for credit losses on available-for-sale debt securities.

Revised Implementation Dates

The Board tentatively approved a new “two-bucket” approach and delayed implementation.

Bucket 1 —  Large Public Business Entities (PBEs) that are SEC Filers – Fiscal years beginning after December 15, 2019, and interim periods therein (no change).

Bucket 2 — All other entities – Fiscal years beginning after December 15, 2022, and interim periods therein.

IFRS 9 vs. CECL

IFRS 9 is the International Accounting Standards Board’s (IASB) analog of CECL.

Governance

OCC 2011-12/SR 11-7 

All RiskSpan–developed models are certified by an independent model governance team and the certification reports are available to the customer.

Back-testing 

Regular back-testing is performed on our models, refinements are made as appropriate, changes are documented, and new versions are released onto the platform.  RiskSpan provides testing evidence to model validators and auditors.

SOC 2 Type 1 

Our platform has passed SOC 2 Type 1 auditing.

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Do More with Your CECL Estimate

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Data at your Fingertips

Loan and Securities Data and Models – On One Platform

The RiskSpan Edge Platform is a data management and model execution platform that enables users to easily access data, models, and governance tools – on a single integrated system. 

Load your own portfolios, benchmark to third-parties, deploy predictive modeling to forecast performance. Discover trends and insight that give your team an edge. 

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