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Matching pecuniary liability of key personnel refers to aligning the financial responsibilities of executives or critical staff with the organization's performance and risk management strategies. This approach ensures that key personnel are held accountable for their decisions, particularly in financial matters, thereby promoting prudent management practices. By tying their compensation or penalties to the company's financial outcomes, organizations can encourage a culture of accountability and mitigate potential risks associated with poor decision-making. Ultimately, this alignment helps protect the interests of stakeholders and enhances organizational stability.

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1w ago

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