What are the stresses that the Invictus Model measures?
“Stresses” as used in the Invictus Capital Assessment Model™ are the pressures and external events a bank faces as a result of a recessionary economy, tightened credit markets, increased regulation or legislation, reduced liquidity, and other external financial events assaulting the institution. In other words, they are any external events or conditions over which the bank has little or no control, and which pose potential threats to, or stresses on, the bank’s balance sheet. The ICAM model shows where these stresses and characteristics intersect and calculates the net cumulative effect they will have on regulatory capital. With this picture in hand, we are able to help management and the board identify ways to deal with the most acute vulnerabilities the Model reveals – but also with the smaller, less dramatic vulnerabilities that, when taken together, can create serious capital shortfalls. Only with the “x-ray vision” of the analysis — one unique to the Invictus Model — can a bank in
