Net Asset Valuation (NAV) systems are used by the buy side back office accounting teams, to calucate, as the name implies, the value of the shares of a fund based on the value of the totall assets minus liabilities held by that fund. It is generally calaculated at end of day and based on the closing prices of the portfolio's securities.
From a regulator’s perspective, investor critical activities such as fund accounting and NAV reporting represent investor protection and systemic risk mitigation imperatives. They now expect (and require) the investment industry to show ongoing readiness and resilience for these imperatives. Of particular importance is oversight and contingency planning for self administered and outsourced NAV production, which involves a complex set of daily processes; operational issues or failures around NAV reporting can result in regulatory fines, increased scrutiny, and reputational harm. NAV oversight and contingency solutions can act as an oversight tool or as a means of reconstructing NAV in the case of an operational or business failure on the part of the service provider.