Regulation on an institution’s risk profile

This regulation establishes technical standards to identify which employees in financial institutions have a significant impact on the organization's risk profile. By defining specific qualitative and quantitative criteria, it ensures that the people making high-risk decisions are properly monitored and managed to prevent financial instability.

This affects banks and other credit institutions. It requires them to categorize staff based on their influence on risk, which in turn determines how their bonuses and remuneration are structured to discourage excessive risk-taking.