Lloyd C. Blankfein, chairman and chief executive officer of Goldman Sachs Group Inc., said mistakes in risk judgment shouldn’t be penalized “too much.”

“If you put too much penalty on risk judgment, what kind of world are you going to have?” Blankfein, 57, said at the Chicago Club, where he was participating in a discussion with Motorola Solutions Inc. Chairman and CEO Greg Brown. “If you’re getting pounded and being made to ask questions, what kind of economic system do we have?”

Goldman Sachs, the fifth-largest U.S. bank by assets, competes with JPMorgan Chase & Co., the biggest, in investment banking, trading and asset management. Jamie Dimon, the chairman and CEO of JPMorgan, will testify to a Senate committee about how his bank lost money on derivatives trades. In a prepared statement released Tuesday, Dimon in part blames risk-management failures for the loss.

“Risk management isn’t about getting risk right all the time,” Blankfein said. “It’s about trying to get risk right all the time.”