Goldman Sachs Risk Management rep? Future of risk management thoughts?
Hey all,
I recently received an offer for a SA role in GS Credit Risk Management and I was wondering what your thoughts are. In these markets, I'm just thankful for any position related to finance. My ideal positions are either in IBD or Research, do you think it would be possible to transition to either of these groups after perhaps proving myself in risk management?
Also, I'm curious to all your thoughts on the future of risk management in the industry. Obviously the current crisis is a result of the systemic failure of risk management and I have read articles saying that it will become more important going forward and that the compensation of risk management officials will in the future be more in line with those of IBD/S&T. Do you guys think there is truth to this? Thanks.
Credit Risk? this sounds like back office. Excuse my ignorance if i'm incorrect.
I think its considered middle-office work.
I'd say the environment for risk management is somewhat ripe at the moment. Go for it. You'd be crazy not to.
Yeah, it's probably considered middle office along with some other Finance functions like valuation, control, etc.
It's not a bad roll to take for a summer position, especially in this market. I don't think that compensation will ever get near the level of IBD/S&T, but the pay isn't terrible (who knows, maybe it will actually improve). I would think that you'd gain some marketable skills, too.
If u dont want it... give it to me
It is middle office but you liase a lot with FO ppl, compliance and if necessary, clients.
It's actually an important role so that the company gets paid if anything happens to the counterparty. Obviously what they want is to only trade with clients that are credit healthy in the first place so you do the analysis etc to see if they are credit worthy.
and from my personal experiences, the CR team is also very much a FO team.
Thanks for the advice everyone. I've done more research on the position and it sounds like a good gig.
Here is the Op-Ed piece from Mr. Blankfein himself that first piqued my interest.
"For Goldman Sachs, the daily marking of positions to current market prices was a key contributor to our decision to reduce risk relatively early in markets and in instruments that were deteriorating. This process can be difficult, and sometimes painful, but I believe it is a discipline that should define financial institutions.
As a result of these lessons and others that will emerge from this financial crisis, we should consider important principles for our industry, for policymakers and for regulators. For the industry, we cannot let our ability to innovate exceed our capacity to manage. Given the size and interconnected nature of markets, the growth in volumes, the global nature of trades and their cross-asset characteristics, managing operational risk will only become more important.
Risk and control functions need to be completely independent from the business units. And clarity as to whom risk and control managers report to is crucial to maintaining that independence. Equally important, risk managers need to have at least equal stature with their counterparts on the trading desks: if there is a question about the value of a position or a disagreement about a risk limit, the risk manager’s view should always prevail."
http://www.ft.com/cms/s/0/0a0f1132-f600-11dd-a9ed-0000779fd2ac.html
Hopefully the compensation will follow the increase in power. :)
Goldman Sachs Risk Management (Originally Posted: 04/16/2010)
What do you think are the exit opps from Risk Management in Goldman Sachs are? I understand how many people look down on Risk Management but I heard at Goldman things are a little different. I am talking about the Market Risk Management and Analysis group under Finance at Goldman.
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