Invictus Consulting Group is a specialty financial advisory
and risk-management firm focused on the banking industry
and its directors, regulators, investors and D&O insurers.

INVICTUS RISK MANAGEMENT SYSTEM

ICAM ChartInvictus has the ONLY forward-looking analytical methodology that can quantify a bank ’s short and long-term deterioration in assets and the resulting impact to regulatory capital levels. At the core of this methodology is the Invictus Capital Assessment Model, or ICAM™, a proprietary, patent-pending methodology unique to Invictus, and unmatched in its predictive capabilities. The Invictus methodology can rely solely on publicly available data to accurately project regulatory capital levels.

If internal credit or other financial data is provided, even greater accuracy can be achieved. The Invictus Methodology not only focuses on the regulatory capital deterioration, but can also accurately forecast the timing of the deterioration-allowing for the timely implementation of curative measures.

The Invictus principals represent an exceptional collection of prominent executive leaders in banking, credit, investment banking, insurance, financial modeling, research, and regulatory affairs.

ICAM Logo

The Invictus Capital Assessment Model, or ICAM™, can accurately forecast the timing and amount of a bank’s future regulatory capital levels, revealing the expected deterioration or strength of their assets in a recessionary environment. The system is unique in several regards:

  • It is forward looking, not regressionary, in its analytical structure.
  • It identifies both the timing and the amount of regulatory capital deterioration.
  • It provides sensitivity and ‘what if’ analyses to refine its predictions of capital fluctuations.
  • It shows the impact of potential corrective actions which, if taken on a timely basis,
    can sustain a bank that is otherwise likely to fail.

The ICAM is the engine that drives Invictus, and is unmatched in its predictive capabilities.

The Power of the ICAM Methodology

The Pre-stress graph below depicts a peer group selected by an external rating agency. Note that in the first graph, represent their current capital positions, all the banks have regulatory capital above the minimum threshold. However, upon the application of the ICAM model imposing a stressed environment on the peer group of banks, the result is very different. Four of the 10 banks selected are shown to have potential regulatory capital problems, with two of them actually going into regulatory capital default. For more on this please visit our Research section.