3. The quote below is taken from a description of risks by and methods for dealing with...

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3. The quote below is taken from a description of risks by and methods for dealing with risks faced by a financial entity, Goldman Sachs. The three blanks are intentional. In addition to liquidity risk, the quote below discusses another form of risk. What is that risk?

The Goldman Sachs _________ plan sets out the plan of action we would use to fund business activity in crisis situations and periods of market stress. The _________ plan outlines a list of potential risk factors, key reports and metrics that are reviewed on an ongoing basis to assist in assessing the severity of, and managing through, a liquidity crisis and/or market dislocation. The _________ plan also describes in detail the firm’s potential responses if our assessments indicate that the firm has entered a liquidity crisis, which include funding our potential cash and collateral needs as well as utilizing secondary sources of liquidity.

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Foundations Of Global Financial Markets And Institutions

ISBN: 9780262039543

5th Edition

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

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