Financial Institutions and Markets Over Term Paper

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To prevent these kinds of situations, management needs to implement a policy that will limit the total amount of derivative based assets in: the clients' or the company's portfolio to an acceptable amount. At which point, they would have the compliance department monitor these activities, to ensure that everyone is following the different guidelines. This will reduce the possible risks facing the company and it would improve their internal controls. ("One Bank One Client")

Clearly, the National Bank of Canada is in a much stronger position in comparison with its competitors. The reason why, is because they have been engaging in actions that have been helping the company to: increase its bottom line and expand into new markets. Some good examples of this can be seen with the increases in: Personal / Commercial Banking, Wealth Management and Financial Markets. However, at the same time, these actions have meant that possible risks facing the company have increased.

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The most notable include: over concentrating on select regions, ignoring other asset classes and managers becoming complacent. These different elements are important, because they are showing how there needs to be better internal controls. One possible recommendation is to: set a cap on their exposure to derivative based assets. This is important, because this will help to: curb the overall amounts of speculation and it will increase the diversification in a host of portfolios. One this takes place, it means that the risks facing the company have been reduced. At which point, executives can be able to continue with the current strategy. As this will help to promote prudent business practices and provide enough flexibility, to adapt to the various changes that are taking place......

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"Financial Institutions And Markets Over" (2011, March 29) Retrieved July 5, 2025, from
https://www.aceyourpaper.com/essays/financial-institutions-markets-3263

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"Financial Institutions And Markets Over" 29 March 2011. Web.5 July. 2025. <
https://www.aceyourpaper.com/essays/financial-institutions-markets-3263>

Latest Chicago Format (16th edition)

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"Financial Institutions And Markets Over", 29 March 2011, Accessed.5 July. 2025,
https://www.aceyourpaper.com/essays/financial-institutions-markets-3263