Category: Systems

A rating system is a system of classifying according to quality or merit or amount. Any system comprises a set of detailed methods, procedures and routines created to carry out a specific activity, perform a duty, or solve a problem. A rating system serves to perform ratings, provide ratings to decision makers or even to the general public. A rating system is an organized, purposeful structure that consists of interrelated and interdependent elements (components, entities, factors, members, criteria etc.). Since these elements continually influence one another, they should achieve the goal of the system. Rating systems have inputs, outputs and feedback mechanisms, maintain an internal steady-state despite a changing external environment, and have boundaries.