Financial Innovation & Risk Management

Financial Innovation & Risk Management Essay example
Finance & Accounting
Pages 12 (3012 words)
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Goldman Sachs Name Here Name of Institution City, State Date Goldman Sachs Introduction Over the recent years, commercial banks in the banking industry have recorded dramatic losses because of risks it faces due to global crisis. This is because, in the financial perspective, risk is assessed as the tendency whereby the actual return does not match with the expected return.


Goldman Sachs is one of the banks using risk management strategies that either eliminates or mitigates some risks. In other instances, Goldman Sachs management decides to shift the risks to other parties (Goldman Sachs, 2012). The risk management strategies comprise of liquidity risk management, operations risk management, credit risk management and market risk management that has over the years, seen the bank remain stable during both the financial and economic crisis. More significantly, banks carry out risky business, as it provides financial services to its clients. In the banking industry, Goldman Sachs is well known as the leading securities and global investment-banking firm. It has three main business lines that it operates comprising of investment banking, asset management and securities services and trading and principal investments. Goldman Sachs is an international corporation that provides services to a substantial and diversified client base that is widely distributed worldwide. With banking institutions in over twenty-three countries, it has diversified its operations outside the United States and grown globally (Goldman Sachs, 2012). ...
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