Finance Business Units
How We're Organized
The Controllers group is responsible for safeguarding the firm's assets: We help maintain the integrity of Goldman Sachs' finances and expenditures.
Through careful consideration and analyses of firm finances, objectives and strategies, we ensure that the firm's businesses continue to be profitable and efficiently run. Controllers also ensure that all business practices are in compliance with financial and regulatory requirements worldwide.
Since contact with virtually every part of the firm is essential to Controllers, professionals in the department experience Goldman Sachs businesses, products and sophisticated technology systems in depth. If you want to develop an in-depth understanding of financial services, Controllers is a great place to begin your career. You will receive continuous training, both formal and informal, and the support of senior members of our team.
People in Controllers provide a number of essential functions: They support the revenue-producing divisions of the firm while partnering with other federation areas such as Operations and Technology divisions. They ensure the firm’s businesses are in compliance with the rules and regulations governing transactions in financial markets worldwide. They measure the profitability of the firm’s increasingly complex products and services. They prepare internal and external financial information for the firm, including the annual report and press releases and regulatory filings in all jurisdictions. Finally, they manage the internal and external relationship with regulators and auditors.
Controllers is organized into several main operating groups as follows:
- Prepare the Firm’s quarterly and annual SEC filings
- Monitor Firmwide revenues and non-compensation expenses
- Evaluate new acquisitions, structured trades and other transactions to determine appropriate accounting treatment
IMD (Investment Management Division) Controllers
- Institute and monitor valuation policies and perform price verification
- Establish accounting policies, review investor P&L allocations and validate fee calculations
- Prepare global regulatory filings, AUM and revenue reporting
Product Controllers and Funding Controllers
- P&L calculations, reporting, attribution and reporting to desks
- Price verification and management reporting
- Account and monitor for the firm’s secured and unsecured financing activities
- Calculate and review Firm’s capital ratios
- Analyze and report regulatory capital
- Prepare global regulatory filings
- Coordinate the capital computations for GS Group and regulated legal entities
Other Controllers groups include:
Controllers Technology Office/Financial Systems & Analysis
- Partner with Controllers groups and Technology to drive the formulation of the strategic vision for the Controller's systems architecture
- Execute the strategic vision though project management and business analysis support for the technology implementation initiatives across all Controllers groups
- Steer the Controllers technology budget and prioritization process
- Monitor and report on technology development initiatives and associated costs
- Coordinate Controller’s Business Continuity Planning and execution
- Develop tactical reporting applications
- Maintain and provide user support for core financial reporting system infrastructure
- Ensure data quality by enforcing controls over key external reporting processes
- Develop rapid understanding of new products
- Identify relevant structural and implementation issues
- Coordinate analysis, introduction and documentation of new products with all support areas
- Manage new product approval process globally, and coordinate activities of the Firmwide and Regional New Activity committees
The Tax teams work in offices around the world to ensure that the Firm complies with the tax laws of the countries in which we do business.
We advise the firm’s professionals on the tax implications of transactions for the firm and of new products in development; tax planning for the firm and its partners; tax compliance work for the firm’s partners and business entities; and assisting the Human Capital Management department in handling tax-related matters for international employees.
Our Tax professionals:
Provide tax information for the firm’s financial statements
Minimize the firm’s effective tax rate
Prepare/supervise the preparation of federal, state and local US and non-US tax returns for the firm, GSAM funds and the firm’s merchant banking vehicles
Provide worldwide tax advice to the firm's business and support units
“Liquidity, liquidity, liquidity – the only thing that ever causes a financial institution to truly go down is running out of money.”
–David A. Viniar, Chief Financial Officer
Corporate Treasury manages the firm’s liquidity, funding, and capital. Our goal is to ensure that Goldman Sachs remains liquid and well-capitalized, even throughout the most difficult market environments. Our primary objectives are to:
Determine the appropriate funding strategy for assets based upon their liquidation profile
Maintain an appropriate level of excess liquidity
Raise funding across diverse markets, investors, and products; and,
Hold adequate capital to protect against risk of loss and to meet regulatory requirements
Below is a brief description of some of Corporate Treasury’s core functions:
Liquidity Risk Management
Model potential liquidity outflows and funding requirements at a business/desk level
Build tools to better understand changes in excess liquidity over time
- Analyze new business initiatives and products to assess their liquidity risks and funding requirements
Structure debt and equity issuances
Allocate balance sheet capacity across firm businesses
Determine the allocation of funding costs to business lines
- Develop and monitor metrics to assess funding capacity and risk
Optimize the level and composition of the firm’s capital base relative to its risk profile
Ensure ongoing compliance with regulatory capital rules and standards
- Manage the firm’s share repurchase program and dividend policy
Protects the firm's capital against counterparty default and advises clients on credit ratings. Credit is responsible for protecting the firm's capital.
To do this, the division determines risk appetite by analyzing the business and financial profile of each of our counterparties in the financial markets. We also act as a credit rating advisor for our investment banking clients.
Credit's primary offices are located in New York, London, Hong Kong and Tokyo.
This group consists of two departments: Credit Risk Management and Advisory and Bank Debt Portfolio Group/Global Special Assets Group.
Credit Risk Management and Advisory
Understanding the credit quality of corporations, financial institutions and governments worldwide is an essential aspect of Goldman Sachs’ ability to protect its capital and be an effective financial intermediary. The Credit department's in-depth knowledge of our clients, markets and trading products—and our resulting decisions on risk tolerance—are crucial to the firm.
Credit leverages its extensive expertise in financial, credit and risk analysis to provide astute and objective judgments to the firm and its clients, in either a transactional or advisory capacity. Goldman Sachs is one of the few firms on Wall Street to house both the counterparty credit risk management as well as rating agency advisory for Investment Banking clients in one department. Since Credit has been structured to work closely with almost every division of the firm, its professionals gain diverse financial experience and a broad perspective on how the firm functions as a whole. Our unique position keeps us at the forefront of the firm's strategic developments, and the interaction with numerous divisions and the diverse projects that ensue allow for a challenging, varied and multi-dimensional work experience.
Credit Risk Management:
Assess the credit and financial strength of the firm’s trading counterparts to determine acceptable levels of credit exposure
Analyze the risks inherent in the products Goldman Sachs trades, including increasingly complex derivative transactions
Market Risk Management & Analysis
Market Risk Management & Analysis measures, analyzes, and controls the market risk of the firm globally.
Our responsibilities include:
Playing a key role in the risk/reward decision making process of the Firmwide Risk Committee
Measuring the losses that the firm would experience under a variety of normal and extreme market conditions, across asset classes, for all our trading desks globally
Verifying and approving pricing models
Advising on the modeling of complex trades
Reporting market risk information to external bodies
Participating in evaluating and introducing new products and business
The department is made up of the following three groups with representation in New York, London, Tokyo, Hong Kong, Seoul, Singapore and Bangalore.
Market Risk Analysis is responsible for measuring, analyzing and reporting market risk, including monitoring adherence to limits. Varieties of quantitative measures are used, including Value at Risk (VaR) and stress tests. Much focus is given to liquidity and risk concentration. This team is at the center of the firm's daily trading activities and looks at all businesses and asset classes across the firm globally. Market Risk Analysis is looking for pro-active and driven people with a great eye for detail, strong analytical skills and a strong desire to truly understand the financial markets. Those who join us will be able to operate at a fast pace and in a constantly changing risk environment.
Market Risk Strategies is responsible for designing and implementing market risk measurement models as well as approving pricing models used by the firm. The group is comprised of two teams: Risk Modeling and Derivatives Analysis.
Risk Modeling is the core group that designs and implements all risk models for our trading portfolio, including VaR models, stress testing and hedging analysis. We are looking for people who have strong quantitative and technological training.
Derivatives Analysis consists of derivatives modeling experts focused on the risk management of exotic derivatives. The group assesses and quantifies model risk, approves all pricing models and advises senior management on the risks associated with particularly large and complex transactions.
Corporate Risk is responsible for calculating, monitoring and reporting our market risk capital to regulators. By attributing risk capital to individual trading businesses, the group also plays a direct role in the strategic risk/reward decision-making process.
The Operational Risk department works closely with the firm’s business leaders to provide thought leadership around risk management with the goal of aligning the overall risk profile of the firm with its risk appetite.
This presents unique opportunities to interact with many businesses, which allows for a diverse financial experience and broad perspective on how the firm functions as a whole.
The Operational Risk Management discipline includes such activities as risk analytics, scenario analyses and capital calculations to determine an efficient and risk-sensitive capital amount for internal risk management and decision-making purposes. The analysis and reporting of firmwide operational risk events, trends and capital exposure information are presented to senior management and the various governing bodies of the firm.
Operational Risk has a presence in New York, London, Tokyo and Hong Kong. There are opportunities to interact with other Goldman Sachs offices across regions to support the operational risk global framework.
Team members are responsible for participating in activities and projects to support the implementation of operational risk throughout the firm. Effective coordination with other risk professionals, risk departments, technology and business managers will be critical for success on this team.
As an Operational Risk team member, you will:
Participate in a business relationship management team covering specific business lines or enterprise areas. In this capacity, you will be responsible for maintaining a close relationship with and deep understanding of your assigned business/enterprise functions in order to identify business developments that could potentially impact its operational risk profile
Assist in the evaluation/assessment of internal losses as well as trending analysis of industry peers
Interact with other risk/control disciplines, including the Management Controls department, to share and evaluate information for a thorough assessment of the overall business environmental and internal control factors of the business lines
Develop knowledge of the operational risk regulatory requirements as outlined through various regulatory agencies, such as Securities & Exchange Commission (SEC) and Financial Services Authority (FSA)
Participate in the scenario analysis process with the firm’s senior business leaders in determining data elements to directly support a capital determination process
Participate in operational risk industry events
Perform operational risk due diligence on new products
Firmwide Strategy works with senior divisional management and the Executive Office to develop and execute the firm's long-term strategic plan.
This team concentrates on initiatives across all of the firm's businesses and geographic areas of operation. Some of the key activities include:
Performing ongoing strategic assessment of existing business franchises and competitive positioning
Undertaking new business development activities
Evaluating acquisition, divestiture and joint venture transactions for the firm
Goldman Sachs Bank USA
Goldman Sachs Bank USA is a $100+ billion, New York state-chartered wholesale bank that engages in a number of business activities unique to the Bank, such as Private Banking and conducts a number of key Goldman Sachs trading businesses and lending activities.
GS Bank Professionals work in a number of key areas:
Private Bank: Offers a range of private banking services for wealthy individuals, enabling clients to consolidate the management of all their investment and banking assets and liabilities with one firm
Urban Investment Group (UIG): Finances housing, commercial and economic development projects in underserved, transitioning or distressed neighborhoods
Bank Strategy and Business Development: Development and execution of the Bank's long-term strategic plan
Finance: Serves as the Bank's product controllers, regulatory, financial and management reporting, regulator relations, asset-liability management and corporate treasury functions
GS Bank Management: Manages the day-to-day operations, and oversees the Bank's finances and development of its long-term strategy