Ethical Standards & Professional Conduct Flashcards
7 cards from real RIMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethical Standards & Professional Conduct flashcards as text
The RIMS Code of Ethics applies to members in which of the following situations?
Answer: In all professional activities related to risk management
The RIMS Code of Ethics governs member conduct across all professional risk management activities, not just formal RIMS events.
A risk manager discovers an error in a previously submitted risk report that understated potential losses. The ethical obligation is to:
Answer: Immediately notify relevant stakeholders of the error and correction
Professional integrity requires prompt correction and disclosure of material errors that could affect stakeholder decisions.
Which best describes 'professional skepticism' as an ethical practice in risk management?
Answer: Critically evaluating information regardless of its source to ensure accuracy
Professional skepticism means maintaining a questioning mind and critically assessing information, not blanket distrust of all sources.
When a risk professional transitions to a new employer in the same industry, ethical obligations regarding former employer information include:
Answer: Maintaining confidentiality of proprietary information from the former employer
Confidentiality obligations to former employers persist after employment ends, particularly for proprietary data and client information.
A risk manager serving on a professional committee learns that a competitor's claim handling process is severely deficient. The ethical response is to:
Answer: Handle the information through appropriate professional or regulatory channels
Information obtained in a professional capacity should be channeled through appropriate mechanisms, not used for personal gain or unauthorized disclosure.
Which action would most likely constitute a violation of the RIMS ethical standard regarding professional reputation?
Answer: Making false statements about a competitor's professional qualifications
Making false statements about competitors' qualifications violates ethical standards prohibiting misrepresentation and conduct that harms others' professional reputations unfairly.
In risk management, the ethical concept of 'due diligence' primarily refers to:
Answer: Conducting thorough and careful investigation before making professional recommendations
Due diligence in professional ethics means exercising appropriate care and thoroughness in gathering and analyzing information before making recommendations.