Invictus is a specialty financial advisory and risk management firm
focused on the banking industry, serving banks and their regulators,
investors and D&O insurance underwriters.
Invictus has developed the ONLY forward-looking stress testing methodology able to predict a bank’s post-stress Tier 1 capital position and other performance metrics over the intermediate term horizon.
The Invictus (stress testing) methodology is driven by our patent-pending Invictus Capital Assessment Model, or ICAM™, which is at the core of everything we do.
The Invictus Methodology is fast, practical and easy to implement.
It takes a complex process and creates easy to understand yet highly sophisticated and powerful information about how a bank is likely to recognize stresses to its balance sheet, AND how it is likely to perform on a forward-looking basis. It then goes well beyond just stress testing capital adequacy, examining the impact on earnings, liabilities, provisioning, and asset redeployment risks, among others.
The Invictus Methodology is the only one of its kind in the market.
Who’s using Invictus?
BANKS praise the Invictus Methodology as a “best practices” tool for stress testing, risk mitigation, and as a foundation for strategic and capital planning.
REGULATORS are rapidly accepting our sustainability stress test model as the benchmark in the industry.
D&O UNDERWRITERS are adopting the Invictus methodology to aid them in assessing underwriting risk for their bank clients.
INVESTORS use it for analyzing existing and potential holdings, merger and acquisition activity and valuations, among other applications.
"It is virtually impossible, and perhaps even irresponsible,
to make any major strategic or investment decision
without understanding the post stress impact of that decision."
To access ANALYSES, GRAPHS and CHARTS, please click on the buttons below:
What exactly is the ICAM™?
The ICAM is a sophisticated yet very practical model that mirrors how and when a bank would recognize and perform under the consequences of stress. It is not an econometric-driven model, nor does it depend on heavy statistical analyses.
Click the button below for a more detailed discussion of the ICAM model.
How Does Invictus Stress Test a Bank?
The ICAM utilizes a standardized risk rating system to analyze the loan portfolio, similar to how a typical operating bank would. It then simulates how loans will behave under certain levels of stress.
There are numerous drivers of expected loan behavior, such as the type of loan, maturity date, regional characteristics, liability structure, probability of default, and loss-given default. Key assumptions are based upon a variety of factors, including but not limited to a proprietary database managed by Invictus, third-party data and historical analyses.
In the case of customized stress test reports for our bank clients, we also factor in information and guidance provided by the Bank. This additional input helps ensure the results are extremely meaningful, accurate -- and revealing.
- We stress test every FDIC insured bank in the U.S., providing the basis for our rating and ranking systems and creating true competitive comparisons based on expected future performance.
- When we customize the methodology for our bank clients, it provides a more precise and actionable picture to assist their interactions with regulators and investors. It also provides a basis for more effective strategic and capital planning and to enhance earnings.