Goldman Sachs 2013 Annual Report Download - page 26

24 Goldman Sachs 2013 Annual Report
Our job is to look around corners and figure out what
could happen that we may not yet have anticipated,”
says Liz Robinson, Global Treasurer of Goldman Sachs.
“Instead of looking separately at market risk versus credit
risk versus reputational, liquidity or operational risk, we
look across the spectrum of those risks to understand
how they interrelate.”
View video
Liz Robinson describes the complexity of global
risk management. Go to: goldmansachs.com/annual-
report-2013/liz-robinson
IN SEEKING TO INCREASE THE FLEXIBILITY of the capital structure at one of its portfolio
companies — Spanish bus company Avanza Group — Doughty Hanson, the private equity
firm, had two goals in mind. First, like many companies across Europe, it sought to replace
a rigid, syndicated loan facility with a new financing structure that would allow greater
flexibility and reduce reliance on bank capital. Second, it sought to ensure that any new
capital structure would remain in place should the firm decide to monetize its stake in
Avanza in the future. With the help of Goldman Sachs, Doughty Hanson overcame both
challenges with the issuance of €490 million in high-yield bonds with an innovative feature
known as “portability,” which ensured that financing could remain in place when the
company was purchased by new owners.
RISK MANAGEMENT
“We always look comprehensively and consistently
across risks, both in the analytics we use and in
the way our risk managers work together and
are integrated.
23
NO
A WAVE OF EUROPEAN
COMPANIES IS CUTTING
COSTS, AND CREDIT
RISKS, BY TURNING TO
CAPITAL MARKETS
Goldman Sachs team members supporting the Avanza transaction: Eduard van Wyk,
Michal Antosik, Giovanni Rigodanza, Thomas Turner, Nicola Stewart, Michael Marsh,
Francisco Cabeza, Investment Banking Division
24
AS CHALLENGES RISE, THE
VALUE OF AN INTEGRATED
RISK MANAGEMENT
INFRASTRUCTURE HAS
BECOME CLEARER
THAN EVER