Risk Management

Risk concern Practices Introduction Goldman Sachs and Macquarie multitude are large financial player within the American and international banking industry. Like some(prenominal) new(prenominal) player in the fiscal sector, the two companies are subject to various assays. These risks are such(prenominal) as; liquidness risks, commercialize risks, credit risks and operational risks. This piece has made comparisons of practices utilise by Goldman Sachs and Macquarie Group in Managing this risks. man Goldman Sachs has formed steal teams to execute the different types of risks, Macquarie Group has taken an integrated nest to managing altogether the risk that the companion is clear to. Risk Management Practices liquid state Risk Liquidity risk refers to risk of loss that originates from measly liquid state position of the community (Horcher, 2010). to the highest degree failures in financial institutions expire due to poor runniness positions. Goldman Sachs has established a finance direction that is in focus of managing the societys liquid risk (Goldman Sachs, 2011). The committal is trustworthy for formulating comprehensive livelihood and fluidness policies that will mitigate the company from fluidity risks. unrivalled such policy is maintaining execs liquid state.

The primary design of Goldman Sachs is to maintain enough liquid that will give the company enough money tramp for its operations. Goldman maintains excess liquidity to collect the cash flow affect as well as collateral needs of the company. some other policy that Goldman Sachs has implemented in managing liquidity risks is maintaining a contingency fund. The purpose of maintaining this fund is to modify the company to move to liquidity crisis or difficult commercialise situation. The finance committee has in addition used divesture as a strategy for managing the companys liquidity. Unlike Goldman Sachs, Macquarie has not established a particular committee that is in charge of managing liquidity risks in the company. Macquarie has a centralize group known as the Risk...If you want to shorten a full essay, order it on our website: Ordercustompaper.com

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