Market Risk Management at GS

Based on the most helpful WSO content, here’s what you need to know about Market Risk Management at a top BB like GS:

1. Exit Opportunities:

• Common exit opportunities from Market Risk include:
  • Other Risk Teams: Transitioning to credit risk, operational risk, or enterprise risk management.
  • Trading/Structuring: While less common, some Market Risk professionals move into trading or structuring roles, leveraging their deep understanding of risk metrics like VaR and stress tests.
  • Treasury: Roles in corporate treasury, focusing on liquidity and funding risks.
  • Buy-Side: Opportunities in hedge funds, asset management, or private equity, particularly in risk-focused roles.
  • Fintech: Risk analytics and modeling roles in financial technology firms.

2. Internal Mobility:

• There is interaction with front office Strats, credit risk, controllers, and corporate treasury, which can facilitate internal mobility. However, transitioning to front-office roles like trading may require additional networking and skill-building.

3. Compensation:

• Base Salary: Your base of slightly over $80k in NYC is on the lower end compared to peers like SMBC and JPM (~$100k).
• Bonus Range: Bonuses in Market Risk are generally modest compared to front-office roles. For entry-level analysts, bonuses might range from 10-20% of base salary, scaling with seniority but remaining lower than trading or investment banking roles.
• Total Compensation: While the base and bonus may lag behind peers, GS offers strong brand value and career growth opportunities, which can offset the initial pay gap.

4. Working Hours:

• Market Risk roles typically offer great work-life balance. Hours are generally 9-6, with occasional longer days during reporting periods or market volatility.

This role is an excellent opportunity to gain a strong foundation in risk management and market dynamics, with potential for growth both internally and externally. Good luck with your internship!

Sources: My Experience as a Market Risk Analyst, Guide to Careers in Market Risk, My Experience as a Market Risk Analyst, Career progression and salary for Market Risk in BB, Why the focus on exit opps?