How does the Invictus System operate with banks?
The ICAM model provides the framework beginning with a detailed stress testing capability. By focusing on the balance sheet, the Invictus team assists the bank in analyzing and reviewing all areas in which the bank could experience regulatory capital declines in a stressed environment. More importantly, the ICAM model identifies the timing of the degradation, giving management that one additional valuable piece of information – “How long do we have before we violate capital requirements?” A typical engagement with a bank includes using the ICAM to provide a complete and detailed analysis of all factors contributing to the reduction of regulatory capital, the timing of crossing below regulatory minimum requirements (the Point of No Return or PNR), and point at which regulatory capital reaches its lowest point in the forecast horizon (the Point of Maximum Stress or POMS). The findings will guide our next steps. If the results indicate a relative strength of the bank’s assets, we will adv
