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Quantitative Finance · Glossary

What is Four-eyes principle?

Definition 12.2 The Desk and the Firm · Chapter 12 — The Risk-Management Function

The four-eyes principle requires that a decision or action of a defined kind (a limit increase, a model change, a new product, a payment) be approved by a second person, independent of the one who proposes or executes it, before it takes effect.

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