Ethical Standards & Professional Conduct Flashcards

A risk management professional is presenting risk findings to the board of directors. Ethical communication requires that the professional:

Answer: Present complete, accurate findings including unfavorable information

Ethical standards demand honest and complete communication to decision-makers, including information that may be unwelcome or contradict preferences.

The concept of 'duty of loyalty' in RIMS professional ethics primarily means:

Answer: Acting in the best interest of the employer and clients within ethical bounds

Duty of loyalty means faithfully serving employer and client interests, but never at the expense of ethical or legal obligations.

A risk manager who holds the ARM designation is asked to use that credential in marketing materials that exaggerate their risk management services. The ethical obligation is to:

Answer: Refuse and ensure credentials are not used in misleading representations

Professional credentials must not be associated with false or misleading claims, as this violates the integrity and public trust requirements of the profession.

Which scenario represents a clear violation of professional objectivity in risk management?

Answer: Selecting an insurer owned by a family member without disclosure

Selecting a vendor with an undisclosed personal financial relationship is a conflict of interest that violates professional objectivity.

When a RIMS member disagrees with a client's decision to accept a risk the member considers unreasonable, the ethical course is to:

Answer: Document the professional advice given and implement the client's lawful decision

Professionals must respect client autonomy in lawful decisions while ensuring their professional advice is clearly documented.

Professional ethics in risk management require that continuing education activities be:

Answer: Relevant to maintaining and improving professional competence

Continuing education must be aimed at maintaining genuine professional competence, not merely fulfilling administrative requirements.

A risk manager is pressured by a supervisor to exclude a material risk from a report to avoid alarming investors. The ethical response is to:

Answer: Include the risk and document that removal was requested by the supervisor

Integrity requires including material information and documenting any pressure to omit it, which creates a record if misconduct is later investigated.