...Leading Investment Banking Franchise: The Goldman Sachs Group, Inc.'s (Goldman) `A'/F1 ratings reflect its strong domestic and international capital markets franchises, including leading positions in mergers and acquisitions and underwriting, in addition to its demonstrated risk management track record and solid capital and liquidity position. Higher Capital Markets Focus: Goldman's strategy to focus on its core franchise strengths has resulted in a higher reliance on capital markets than many of its global trading and universal bank (GTUB) peers. Capital markets revenues, which accounted for 60% of the firm's overall revenue in 2017, are volatile and susceptible to declines in difficult market periods. Strong Risk Management: Goldman has a comparatively strong risk management organization and systems to monitor risk, as demonstrated by its ability to effectively manage risk during periods of market stress. A strong risk management framework is viewed as appropriate given the primary focus...
