The approach is to incorporate within the regulatory and supervisory processes some of the quantitative risk-management tools that large complex banking organizations (LCBOs) now use, or will be using by the time the enhanced Accord is implemented, to evaluate and manage their own risk positions.
Sources: ABS; RBA  So that is a summary of our central forecasts. I would like to return, though, to a point I made at the outset: that actual outcomes can be quite different from the central forecasts. This is especially so in a global pandemic, with all its uncertainties.