RIMS Regulatory Compliance & Ethical Standards 2

Question 1

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

Accepted Answer

Section 302

Answer

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

Question 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:

Accepted Answer

Decline the gift and report it to compliance

Answer

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

Question 3

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

Accepted Answer

HIPAA

Answer

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

Question 4

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

Accepted Answer

A situation where personal interests could improperly influence professional decisions

Answer

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

Question 5

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

Accepted Answer

Protected and disclosed only when authorized or legally required

Answer

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

(RIMS) Risk and Insurance Management Society Certification Practice Test