CFE Conflict Management & Resolution 3 — Questions and Answers
Question 1: In interest-based negotiation, parties focus primarily on:
- Their stated positions
- The legal requirements of the dispute
- Their underlying needs and interests (Correct answer)
- Power dynamics between parties
Correct answer: Their underlying needs and interests
Interest-based negotiation moves beyond positions to address the actual needs driving each party's demands.
Question 2: A third-party neutral who has the authority to impose a binding decision on disputing parties is called a(n):
- Mediator
- Arbitrator (Correct answer)
- Facilitator
- Ombudsman
Correct answer: Arbitrator
Unlike mediators who only facilitate, arbitrators render binding decisions that parties must accept.
Question 3: Which active listening technique involves paraphrasing what the other party said to confirm understanding?
- Mirroring
- Deflection
- Reflective listening (Correct answer)
- Anchoring
Correct answer: Reflective listening
Reflective listening confirms understanding by restating the speaker's message in the listener's own words.
Question 4: A CFE is mediating a dispute between fraud investigators from two partner firms. The CFE's role in this context is to:
- Decide who is correct based on the evidence
- Remain neutral and help both parties communicate and reach their own solution (Correct answer)
- Represent the interests of the larger firm
- Impose a resolution based on industry standards
Correct answer: Remain neutral and help both parties communicate and reach their own solution
A mediator facilitates communication and guides parties toward self-determined resolution without imposing decisions.
Question 5: Which of the following best describes 'positional bargaining'?
- Each party focuses on underlying interests
- Each party stakes out a fixed demand and bargains from that position (Correct answer)
- Both parties defer to a neutral arbitrator
- Parties collaborate to invent new options for mutual gain
Correct answer: Each party stakes out a fixed demand and bargains from that position
Positional bargaining anchors each party to a stated position, often leading to suboptimal outcomes and damaged relationships.
Question 6: During a fraud investigation debrief, a team member becomes defensive and hostile. The most effective response is to:
- Match their tone to assert authority
- Remain calm, acknowledge their feelings, and redirect to facts (Correct answer)
- Immediately end the meeting and file a disciplinary report
- Exclude them from future investigation briefings
Correct answer: Remain calm, acknowledge their feelings, and redirect to facts
Staying calm, validating emotions, and refocusing on facts de-escalates tension and maintains productive dialogue.
Question 7: What is the primary purpose of a cooling-off period in conflict management?
- To delay resolution indefinitely
- To allow emotions to de-escalate before resuming constructive dialogue (Correct answer)
- To gather more evidence against one party
- To give management time to take sides
Correct answer: To allow emotions to de-escalate before resuming constructive dialogue
A cooling-off period reduces emotional intensity so parties can engage more rationally when discussions resume.
CFE Conflict Management & Resolution 3
In interest-based negotiation, parties focus primarily on: