Canada has a very open economy, so the boost in world growth is good for us. Global inflation or disinflation trends matter, too. Our work shows that up to a quarter of the variance in core inflation in Canada can be explained by a common global factor.
Strong internal controls and governance require that these assessments be done by an independent group. One of the weaknesses that we have seen is that management delegates both the development and the assessment of the internal control structure to the same risk-management, internal audit, compliance, or legal division.