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Business Improvements
Since the two companies operate in different target markets and with substantially different product mixes the recommendations must be customized for each firm. Goldman Sachs is considered a top trade recommendation for 2012 by many accounts as the firm is largely financially successful and the institutional client services dominate the businesses revenue stream (Craig, 2013). The most pressing recommendation for Goldman Sachs would be to integrate a more robust enterprise risk management system (ERM).
Risk management is becoming an important consideration for many organizations. There are several aspects to risk management that apply to Goldman Sachs and their current operating model. The 2008 financial crisis revealed many unseen sources of risk in the financial system. Although Goldman Sachs is considered to have one of the industry's best risk management systems, it stands that the company that the organization could further develop their model (Popper, 2012). Risk management is described as the practice of accounting for the potential risks that face an organization, determine what probability such exposure to risk has to the organization, and deciding how to best mitigate the various risk that is present. In many cases there is no effective way to mitigate the occurrence of various risks and the organization must instead form an action plan or a contingency plan as a response to the risk's occurrence. This...
Goldman Sachs already has systems in place for the most common financial risks due to market fluctuations. In most cases the company has contingency plan already in place so that they can respond quickly to the risk. By reducing the time it takes to both identify and respond to the risk can also reduce the severity of the risk's potential influence upon the organization. However, the modern economy has a whole set of risks that have not been as prevalent in the past. These include such items as systemic financial risk, environmental risks, and political risks. Therefore, Goldman Sachs should continue developing risk screening tools as well as a comprehensive contingency plan to better forecast more modern risks. The ability to respond quickly to the occurrence of risks can be the organization's strongest defense against risk.
The recommendations for Wisdom Tree should include further diversifying the product mix. Wisdom Tree's financial services were rather target compared to the more diversified product mix such as the one offered by Goldman Sachs. WisdomTree is the only publicly-traded pure play ETF sponsor and the…
Works Cited
Craig, S. (2013, January 16). Bolstered by Investments, Goldman Sachs's Profit Soars. Retrieved from Deal Book: http://dealbook.nytimes.com/2013/01/16/goldman-profit-soars-to-2-89-billion-in-4th-quarter/
Janus. (N.d.). Investor Newsletter. Retrieved from Janus: https://ww4.janus.com/Janus/Retail/StaticPage?jsp=jsp/Common/JanusReportHTML.jsp&assetname=JanusReportDealingMarket
Popper, M. (2012, October 9). Who's the Best on Wall Street: Risk Management Report Card. Retrieved from CNBC: http://www.cnbc.com/id/49328094
Steinberg, J. (2013, March 5). WisdomTree Investments' CEO Presents at Citigroup U.S. Financial Services Conference (Transcript). Retrieved from Seeking Alpha: http://seekingalpha.com/article/1249151-wisdomtree-investments-ceo-presents-at-citigroup-us-financial-services-conference-transcript
Steinburg, J. (2012, April 27). WisdomTree Announces First Quarter 2012 Results. Retrieved from Wisdom Tree: http://ir.wisdomtree.com/releasedetail.cfm?ReleaseID=667989
Goldman Lead Leadership Development at Goldman Sachs: A Case Study and Program Strategy Recommendation Goldman Sachs is a company that had more than a century of long-standing respect and authority in the financial world up until the recent economic crisis, which ultimately resulted in allegations of fraud being levied against the company and many of its executives. One creative journalist compared the banking and finance institution to a "vampire squid," and the
There are various investment options for Goldman to consider. It can be land, industries, corporations, educational institutions, healthcare facilities or even a research centre for that purpose. Options are numerous for investment. As of the Bric, if they attempt on improving the law and order situation, corruption, rate of crime and respect for democracy & human rights, a huge number of investors would be interested in investing in their country.
1. What is open systems theory In essence, open systems theory, in the words of Chance and Chance (2002), posits/suggests “that organizations are dynamic systems involving constant interactions among the various formal and informal systems within the organization as well as exchanges (feedback and input) between the organization and systems outside the organization” (p. 7). It therefore follows that an organization’s structure as well as behavior is impacted upon by the
Goldman Sachs Forensic accounting Fraud at Goldman Sachs The recent recession and financial scandal brought to light many unethical, illegal, and quasi-legal practices of the major investment firms. One example of this was the Goldman Sachs securities fraud case, in which the firm was accused of creating and selling bundled mortgage investments in an instrument that was intended to fail and which the company' bet against' with a desire to make a profit
Human Resource Strategy Focusing more on the people and putting their needs and wants first is one of the most essential contributors to success of an organization. Among the toughest challenges being faced by human resources (HR) executives today is the development of effective and efficient yet at the same time powerful business solutions that would focus more on the business by keeping the concerned people in perspective. However, some feel
Goldman Sachs & Co. and Fabrice Tourre were charged by the SEC in 2010 with “Fraud In Connection With the Structuring and Marketing of a Synthetic CDO” from the 2007 subprime mortgage scandal at the heart of the financial crisis of 2007-2008 (SEC, 2010). The specific charge was that the bank and Tourre made material misstatements and omissions in connection with a synthetic collateralized debt obligation that the bank had