The Probability and Impact Rating System (PAIRS)

question 1

Multiple Choice

The Probability and Impact Rating System (PAIRS) :

• A)determines the response APRA should make to the outcomes of PAIRS ratings.
• B)determines the response APRA should make to the outcomes of bank failures.
• C)determines the response APRA should make to the outcomes of financial crisis.
• D)assesses the probability that a regulated institution will fail and the effect such a failure would have on the financial system.

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Definitions:

Concurrent Control

A management technique that involves monitoring and adjusting activities and processes in real-time to ensure project goals are met.

Feedback Control

A management function that involves observing and adjusting processes based on comparing actual outcomes to planned outcomes to ensure objectives are met.

Concurrent Control

A management process that involves monitoring and adjusting ongoing activities and processes to ensure they meet established standards.

Corrective Action

Measures taken to identify, eliminate, and prevent recurrence of undesirable performances or non-conformities in a process or system.