886982--2/6/2007--GOLDMAN_SACHS_GROUP_INC/

related topics
{loss, insurance, financial}
{capital, credit, financial}
{system, service, information}
{financial, litigation, operation}
{cost, contract, operation}
{personnel, key, retain}
{operation, international, foreign}
{stock, price, operating}
{loan, real, estate}
{product, market, service}
{competitive, industry, competition}
{gas, price, oil}
We may incur losses as a result of ineffective risk management processes and strategies. Our liquidity and businesses may be adversely affected by an inability to access the debt capital markets or to sell assets, by a reduction in our credit ratings or by an inability of The Goldman Sachs Group, Inc. to access funds from its subsidiaries. Our businesses, profitability and liquidity may be adversely affected by a deterioration in the credit quality of, or defaults by, third parties who owe us money, securities or other assets. We face enhanced risks as new business initiatives lead us to transact with a broader array of clients, with new asset classes and in new markets. Derivative transactions may expose us to unexpected risk and potential losses. A failure in our operational systems or infrastructure, or those of third parties, could impair our liquidity, disrupt our businesses, damage our reputation and cause losses. Conflicts of interest are increasing and a failure to appropriately deal with conflicts of interest could adversely affect our businesses. Our businesses and those of our clients are subject to extensive and pervasive regulation around the world. Substantial legal liability or significant regulatory action against Goldman Sachs could have material adverse financial effects or cause significant reputational harm to Goldman Sachs, which in turn could seriously harm our business prospects. The financial services industry is highly competitive. The growth of electronic trading and the introduction of new technology may adversely affect our business and may increase competition. Our businesses may be adversely affected if we are unable to hire and retain qualified employees. Our power generation interests subject us to the risks associated with owning power generation facilities.

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