Panic steering is intended for oval racing where you normally may not need much steering throw, you turn it down to make the steering less sensitive at speed. But if you or one of your buddies decides to have a brain glitch and you end up sideways, the idea is that you hit the panic button and you have full steering to get yourself straightened out.

Panic braking I believe is just the maximum brake setting. The brakes you get if you panic and just push it all the way, instead of the normal different levels for different corners and such. Which ideally would prevent the need for panic steering.....

Cheers