Middle office acts as a liaison between front office and back office by monitoring transactions conducted by front office while ensuring back office execution.
Risk management aims to identify, monitor, evaluate and manage an investment bank’s financial and non-financial risks so that they can anticipate and efficiently respond to any potential obstacles in the future.
Responsibilities and oversight is distributed across subdivisions, but the key principles behind risk management remain uniform.
Compliance within capital markets is the essential function dedicated to ensuring strict adherence to laws, rules, and regulations governing financial activities.
The role of compliance significance has grown substantially, particularly in the aftermath of the Global Financial Crisis of 2008, which prompted compliance departments to evolve into more active risk management units.