The Central Bank of Ireland (the “Central Bank”) has launched a new Probability Risk and Impact System (“PRISM”). The aim of this risk-based supervision framework is to supervise all financial firms using an approach that would make it materially less likely that a firm would fail, and less likely the firm would fail in a manner which would endanger financial stability or consumers. In addition to being a framework for risk-management, PRISM is also a software application and has taken over eighteen months of development.
In order to explain how the system works, the Central Bank has issued a paper entitled “PRISM Explained” to provide greater details on the system.
More information on PRISM can be found following this link: IrishCentralBanklaunchesPRISM.