Where did the Invictus Capital Assessment Model™ come from?
When the credit crisis hit in the fall of 2008, the principals of Invictus heard two things from managers and directors that were keeping them awake at night. First, they wanted a mechanism to let them assess the bank’s strengths and weaknesses in a broad-based way, not by tweaking assumptions in individual categories of asset and liabilities. In other words, they wanted to see the bank from 30,000 feet up so they could identify vulnerabilities that were ballooning — or were likely to balloon — before significant and irreversible impairment occurred. Second, they wanted to know how to minimize their personal exposure to shareholder and depositor lawsuits. To give them the big picture, we needed a reliable, accurate analytical tool and a clear, easy-to-understand way of presenting its findings. We looked for a system that could do the work and present the results in a three-dimensional graph, or gradient. And we wanted a system that would show the whole balance sheet — where it was head
Related Questions
- Is it necessary to get the assessment from the relevant government authority when the foreign invested enterprises use equipment as their capital contribution?
- Does adding up of economic capital for market- and credit risk amount to conservative risk assessment?
- How is the Invictus Capital Assessment Model (ICAM)™ different from other bank models?
