QuoteOriginally posted by: twofishQuoteOriginally posted by: popviviSo this must apply to all front office, middle office, and back office quants?One thing that I think gets missed in this forum is how different the reporting structures in a bank are. There are major investment banks out there that don't divide quants into FO/MO/BO quants.QuoteIn this forum, I also get most quants, HHs, and even potential quants do not think BO job is that appealing. Is it because of the work being too tedious or pay being too low??The big problem with dividing things into FO/MO/BO is that then the people in the front office get all of the money and power, which defeats the purpose of having the division in the first place. The reason risk was put in the back office was to insulate it from front office pressure, but if you have a situation in which front office traders have such high status that they can ignore back office risk managers, then you've removed the entire purpose of the structure.To make a change in this structure is something that has to be done at the CEO/managing board level, which means that if you are fresh out of school, you have to take whatever structure they create. However, this structure is so obviously broken that some investment banks have thought about the problem and restructured themselves, and those that haven't are going to be forced to.QuoteUpon seeing the description like "bo monkeys", I even got the impression that BO quant positions are not even respected as an equal functionality to the counterparts in FO and MO. But at the same time, isn't risk management one of the most important perspective of a financial institute?Yes, and putting risk in the back office was a bad, bad idea. There are places out there where risk is considered a front office function, and they have done much less badly than places where risk was considered an obstacle to making money.Risk is never back office, it is middle office. Usually people in risk have bad looks, so we cannot show them to clients. Since there is a clear correlation between looks and intelligence, people in risk are generally dumber, though we tend to hire the smartest of the dumber lot. So, FO have better intelligence and better looks -- make sense to reward them better; after all, we're not communists!