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Risk Management v Compliance Monitoring

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There is a common misconception between Risk Management and Compliance Monitoring in the Capital Markets sector. In reality, the two differ significantly but almost always co-exist in every FSA regulated financial institution. Risk Management is the management of trading activity in real-time while Compliance Monitoring is the monitoring and analysis of historical data to detect and manage breaches in FSA compliance and internal trading policies for auditing purposes.

 

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