Discussion board
The 2015 Annual Report of TD Bank has extensive risk factors that the company considers important to share with its stakeholders. The following highlights the most important risks of the company:
General Business and economic conditions: The Company has not the ability to influence the economic conditions of its main markets: Canada and the United States of America. The company only can make projections and economy cycle studies to develop business strategies (TD Bank).
Technology and Information Security Risk: The use of technology in the banking business is under the control of the company. The company establishes the requirements for technology and system information and own contract personnel of third party companies to develop the system.
Evolution of fraud and criminal behavior: TD Bank and all the banking system has no control over the criminal groups that affect his normal operation of the bank. The bank must adapt every day over that situation and work closely with the authorities and develop security crews to protect the assets of the bank and its clients.
Changes to current laws and regulations: The change in laws over the banking system by the Parliament and Multinational Organizations as Basel are not "theoretically" under the control of the Bank. The company must adapt to bank regulations. The legal team of the Bank must prepare the company and work with officials and legislators to apply the regulations.
Currency and interest rates: The currency and interest rates are under the responsibility of the Central Banks of the world and Federal Reserve of the United States of America. The bank has no control over the currency value (Canadian dollar or the United States dollar) neither the interest rates. The bank must recalculate the passive and active interest it offers to the clients according to the interest rates of the country.
All the previous risks are incorporated in the annual reports and the strategy of the company. The risks allow the company to develop scenarios and to work with them.
Works Cited
TD Bank. 2015 Annual Report Building the Even Better Bank. 2016. Web. 19 February 2016.
