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Quantitative Finance · Glossary

What is Material risk taker?

Definition 10.6 The Desk and the Firm · Chapter 10 — Hiring and Compensation

A material risk taker is an employee whose activities, under banking and investment-firm remuneration rules, have a material impact on the institution’s risk profile; their variable pay is subject to the rules on deferral, instruments, malus and clawback.

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