NAME: CHRISTINE N.

COMPUESTO
COURSE & SCHED: AC3102 TTH 10:30 AM - 12 NN

1. “Study on the Risk Management in Banking Institutions”

DEPENDENT: Risk Management
INDEPENDENT: Banking Institutions

2. PARETO PRINCIPLE
The Pareto Principle, named after esteemed economist Vilfredo Pareto, specifies that
80% of consequences come from 20% of the causes, asserting an unequal relationship between
inputs and outputs. This principle serves as a general reminder that the relationship between
inputs and outputs is not balanced. The Pareto Principle is also known as the Pareto Rule or the
80/20 Rule.
The original observation of the Pareto Principle was linked to the relationship between
wealth and population. According to what Pareto observed, 80% of the land in Italy was owned
by 20% of the population. After surveying a number of other countries, he found the same
applied abroad. For the most part, the Pareto Principle is an observation that things in life are not
always distributed evenly.
Unlike other principles, the Pareto Principle is merely an observation, not law. Although
broadly applied, it does not apply to every scenario.
3. Graph Philippine Peso USD Value (1970-2020)