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...
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