CRM Negotiation & Conflict Resolution 2

Question 1

Formal escalation in client conflict resolution should be triggered when:

Accepted Answer

The conflict cannot be resolved at the relationship manager level, involves regulatory implications, or poses reputational risk to the firm

Answer

Escalation is appropriate when issues exceed the CRM's authority, involve compliance matters, or carry significant business risk requiring senior intervention.

Question 2

Which negotiation tactic involves deliberately starting with an extreme position to anchor the other party's expectations?

Accepted Answer

Anchoring

Answer

Anchoring sets the reference point for the entire negotiation—the first number stated tends to exert a strong gravitational pull on the final outcome.

Question 3

Active listening during a conflict resolution conversation requires the CRM to:

Accepted Answer

Fully concentrate on what the client is saying, paraphrase for confirmation, and avoid formulating a response while the client speaks

Answer

Active listening—paraphrasing, reflecting, and withholding judgment—makes the client feel genuinely heard and reduces defensiveness, creating conditions for resolution.

Question 4

A client and their CRM disagree on investment strategy. The MOST constructive approach to resolve this is to:

Accepted 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

Answer

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.

Question 5

What does 'interest-based bargaining' mean in a CRM client negotiation?

Accepted Answer

Focusing on the underlying needs and motivations of both parties rather than fixed demands or positions

Answer

Interest-based bargaining uncovers what each party actually needs beneath their stated positions, opening up creative solutions that positional bargaining would miss.

CRM - Certified Relationship Manager Practice Test

CRM - Certified Relationship Manager Practice Test

CRM Negotiation & Conflict Resolution 2