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Risks
1. Credit risk – Goldman Sachs may risk being exposed to investments and loans that do not generate sufficient returns or could go bad.
2. Regulatory risk – Over the years, Goldman Sachs has been fined and penalized by regulators multiple times for its role in various market and financial misdeeds and misconducts.
3. Compliance risk – Goldman Sachs’ continued success relies upon its ability to workplace with regulators and comply with the applicable laws and regulations relating to its activities.
4. Market Risk – Goldman Sachs’s business model is dependent on economic and market conditions. If economic trends and market conditions are unfavorable, profits and revenues may be adversely impacted.
5. Counterparty Risk – As a financial institution, Goldman Sachs often enters into agreements with counterparties. Inability to fulfill the obligations agreed upon can lead to potential losses.