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 analyses of firm finances, objectives and strategies, controllers ensure that the firm's businesses continue to be profitable and efficient. Controllers also ensure that all business practices are in compliance with growing financial and regulatory requirements worldwide. Professionals in this department experience Goldman Sachs businesses, products and sophisticated technology systems in depth.
Controllers is organized into four main business units:
- Prepare the Firm’s quarterly and annual SEC filings
- Evaluate and monitor Firmwide revenues, non-compensation expenses, new acquisitions, structured trades and other transactions to determine appropriate accounting treatment
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
Product and Funding Controllers
- Profit and loss calculations, price verification, attribution and reporting to desks and management
- Account for and monitor the firm’s secured and unsecured financing activities
- Analyze and report global regulatory capital and filings
- Calculate and review Firm’s capital ratios
Other Controllers groups include:
Controllers Technology Office
- Partner with Controllers groups and Technology to drive the formulation and execution of the strategic vision for the Controller's systems architecture
- Develop rapid understanding of new products while coordinating analysis, introduction and documentation of these products with all support areas
Credit Risk Management & Advisory
THE CREDIT DEPARTMENT IS RESPONSIBLE FOR PROTECTING THE FIRM'S CAPITAL AGAINST COUNTERPARTY DEFAULT.
The Credit Risk Management & Advisory department (“CRMA”) is a central part of Goldman Sachs' risk management framework, with primary responsibility for assessing, monitoring and managing credit risk at the Firm. Our professionals determine credit risk appetite by analyzing the business and financial profile of each of our trading counterparties, and by analyzing the inherent risks in the Firm's derivatives, funding and lending products. Our mission is to enhance shareholder value by prudently balancing risk with reward, outperforming expected credit losses and strengthening client relationships.
Our responsibilities include:
- Assessing the financial strength of the firm's trading counterparties using both quantitative and qualitative factors to determine acceptable levels of credit exposure
- Performing sector analysis regularly in order to assess portfolio concentrations, sensitivities and trends
- Analyzing the risks inherent in the products GS trades, including new and increasingly complex derivative transactions
- Monitoring, managing and reporting exposures at a counterparty, product and portfolio level
- Understanding and implementing regulatory requirements related to risk and capital
Market Risk Management & Analysis
MARKET RISK MANAGEMENT & ANALYSIS MEASURES, ANALYZES AND CONTROLS THE MARKET RISK OF THE FIRM GLOBALLY.
MRMA’s 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
- Advising on the modeling of complex trades
- Participating in evaluating and introducing new products and business
- Reporting market risk information to external parties
The department is made up of the following five groups:
MARKET RISK ANALYSIS
MARKET RISK STRATEGIES
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.
The Operational Risk Management and Analysis department focuses on producing risk analytics, conducting risk-sensitive scenario analyses, and running capital calculations to quantify tail risk exposure. Team members are responsible for participating in activities and projects to drive the implementation of operational risk management at an enterprise level. Problem solving skills and 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:
- Assist in the development of internal models, evaluation metrics, and assessment criteria for internal losses, as well as scope loss trending for our industry peers
- Develop knowledge and determine impact of current operational risk regulatory requirements
- Participate and conduct scenario analysis alongside the firm’s senior business leaders to determine top risks, develop case studies, and assess metrics to substantiate capital calculations
- Participate in the bottom-up risk and control assessment of the firm, in order to help identify critical and emerging risks
Debt Underwriting Group
DEBT UNDERWRITING GROUP WORKS CLOSELY WITH THE FIRM’S CAPITAL COMMITTEES, INVESTMENT BANKING TEAMS AND CONTROL SIDE AREAS AS PART OF THE FIRM’S DEBT ORGANIZATION AND LENDING ACTIVITIES.
The transaction-oriented and fast-paced nature of its work requires professionals who work well across teams, are able to juggle multiple assignments and are able to interact effectively with many senior members of the Firm. The Debt Underwriting Group has four distinct teams:
UNDERWRITING OFFICER GROUP
• Reviews and pre-screens transactions with deal teams to identify key issues and provide views to various Capital Committees
LOAN NEGOTIATION GROUP
• Structures and negotiates loans on active transactions from inception to close and guides Investment Banking on covenants and structuring
BANK DEBT PORTFOLIO GROUP
• Provides portfolio coverage and administrative agent services for high-yield loan financings, as well as critical information and support to the Firm’s bank debt trading desk
RELATIONSHIP LENDING GROUP
• Manages relationship lending and document negotiation for certain syndicated and bilateral loans to corporate and institutional clients
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.
The Tax department advises 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:
- Calculate the firm’s effective tax rate
- Prepare and 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 global tax advice and support to the firm’s divisions and business units
CORPORATE TREASURY MANAGES THE FIRM’S LIQUIDITY, FUNDING AND CAPITAL.
The Corporate Treasury team ensures that Goldman Sachs remains liquid and well-capitalized, even throughout the most volatile market environments.
Corporate Treasury’s 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
- Hold adequate capital to protect against risk of loss and to meet regulatory requirements
Corporate Treasury is split into three core functions:
- LIQUIDITY RISK MANAGEMENT
- CAPITAL MANAGEMENT
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, and reports to the firm’s Chief Strategy Officer, who is a member of the Executive Office and the Management Committee. A role on this small, dynamic, and highly visible team combines many of the features of investment banking and strategy / management consulting, while at the same time offering the operational perspective of a principal.
Some of the key activities include:
- Evaluating and executing acquisition, divestiture and joint venture transactions for the firm
- Identifying and undertaking new business development activities
- Performing ongoing strategic assessment of existing business franchises and competitive positioning