Negotiation & Conflict Resolution Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Negotiation & Conflict Resolution flashcards as text
Formal escalation in client conflict resolution should be triggered when:
Answer: The conflict cannot be resolved at the relationship manager level, involves regulatory implications, or poses reputational risk to the firm
Escalation is appropriate when issues exceed the CRM's authority, involve compliance matters, or carry significant business risk requiring senior intervention.
Which negotiation tactic involves deliberately starting with an extreme position to anchor the other party's expectations?
Answer: Anchoring
Anchoring sets the reference point for the entire negotiation—the first number stated tends to exert a strong gravitational pull on the final outcome.
Active listening during a conflict resolution conversation requires the CRM to:
Answer: Fully concentrate on what the client is saying, paraphrase for confirmation, and avoid formulating a response while the client speaks
Active listening—paraphrasing, reflecting, and withholding judgment—makes the client feel genuinely heard and reduces defensiveness, creating conditions for resolution.
A client and their CRM disagree on investment strategy. The MOST constructive approach to resolve this is to:
Answer: Present objective data on the options, explore the client's underlying concerns, and find an approach that aligns with their goals and risk tolerance
Combining objective information with exploration of the client's concerns leads to a solution that both respects the client's autonomy and honors the CRM's duty of suitability.
What does 'interest-based bargaining' mean in a CRM client negotiation?
Answer: Focusing on the underlying needs and motivations of both parties rather than fixed demands or positions
Interest-based bargaining uncovers what each party actually needs beneath their stated positions, opening up creative solutions that positional bargaining would miss.
When documenting a client complaint resolution, including the client's 'desired outcome' is important because:
Answer: It ensures the resolution addresses what the client actually wanted, not just what was easiest for the firm
Understanding the client's desired outcome focuses the resolution on their actual goal, which may differ from the literal complaint and leads to more satisfying resolutions.