Practice Test Geeks(RIMS) Risk and Insurance Management Society Certification Practice Test
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Regulatory Compliance & Ethical Standards 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 Regulatory Compliance & Ethical Standards flashcards as text

  1. Under the Sarbanes-Oxley Act (SOX), which section specifically requires CEOs and CFOs to certify the accuracy of financial reports?

    Answer: Section 302

    SOX Section 302 requires CEOs and CFOs to personally certify the accuracy and completeness of financial disclosures in periodic reports.

  2. A risk manager discovers that a vendor is offering gifts above the company's stated policy limit. The MOST ethical course of action is to:

    Answer: Decline the gift and report it to compliance

    Ethical standards require declining gifts that exceed policy thresholds and reporting the incident to compliance to maintain integrity.

  3. Which federal law primarily governs the privacy of health information and directly impacts how risk managers handle employee benefits data?

    Answer: HIPAA

    HIPAA (Health Insurance Portability and Accountability Act) sets national standards for protecting individually identifiable health information.

  4. The concept of 'conflict of interest' in risk management ethics MOST directly refers to:

    Answer: A situation where personal interests could improperly influence professional decisions

    A conflict of interest occurs when a professional's personal interests could compromise their objectivity or loyalty to their organization.

  5. Under RIMS ethical guidelines, confidential information obtained during the course of risk management work should be:

    Answer: Protected and disclosed only when authorized or legally required

    RIMS ethics require that confidential information be safeguarded and disclosed only with proper authorization or as required by law.

  6. The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies from:

    Answer: Paying bribes to foreign government officials to obtain business

    The FCPA makes it unlawful for U.S. persons and entities to bribe foreign government officials to obtain or retain business.

  7. When a risk manager suspects that a colleague is submitting fraudulent insurance claims, the BEST ethical action is to:

    Answer: Report the suspicion through the appropriate internal compliance or ethics channel

    Suspected fraud should be reported through established internal compliance or ethics channels to ensure proper investigation.