Business Ethics Practice Quiz Questions
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Questions and Answers

What is a potential benefit of practicing good business ethics according to the text?

  • Enhance business efficiency, productivity and profits
  • Improve customer satisfaction
  • Boost stock price (correct)
  • Promote short term profit

    • Which ethical theory is associated with behavior where an individual only thinks of their own interest and ignores the impact on others?

  • Deontology
  • Virtue
  • Utilitarian
  • Egoism (correct)

    • According to the 'Bank of Integrity' Guide by the ICAC, which staff behavior might NOT warrant closer observation for integrity issues?

  • A staff member has an overly close personal relationship with certain customers
  • A staff member asks for promotion frequently (correct)
  • A staff member has a sudden change of spending habits incommensurate with their income from the bank
  • A staff member shows signs of financial distress

    • Which statement about conflict of interest under the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission in Hong Kong is FALSE?

    <p>Conflict of interest does not need to be disclosed</p> Signup and view all the answers

    What are the key takeaways from the bank run events mentioned in the text?

    <p>The importance of maintaining ethical standards in business decisions</p> Signup and view all the answers

    Which of the following is NOT mentioned as an aspect of ethical standards at the organizational level in business decisions?

    <p>Corporate competitiveness</p> Signup and view all the answers

    What do the Equator Principles focus on in relation to banks involved in project finance?

    <p>Sustainability and environmental impact of projects</p> Signup and view all the answers

    How does institutionalizing business ethics contribute to the reputation of banks?

    <p>By aligning with industry norms and expected programs</p> Signup and view all the answers

    What is the role of the HKMA in relation to bank reputation?

    <p>Identifying drivers that affect bank reputation</p> Signup and view all the answers

    What is the purpose of the OECD Guidelines for Multinational Enterprises?

    <p>Providing actionable guidelines for ethical corporate practices</p> Signup and view all the answers

    What is the purpose of Phase II in the Green Finance Initiatives from the HKMA?

    <p>To engage the industry and stakeholders in consultation on supervisory expectations</p> Signup and view all the answers

    What is the focus of Phase III in the Green Finance Initiatives from the HKMA?

    <p>Monitoring and evaluating banks' progress</p> Signup and view all the answers

    What does the Supervisory Policy Manual RR-1 provide guidance on?

    <p>Effective reputation risk management</p> Signup and view all the answers

    Which factor plays a key role in determining an Authorized Institution's sustainable future for its business?

    <p>Reputation</p> Signup and view all the answers

    What aspect of banks' progress does Phase III of the Green Finance Initiatives focus on?

    <p>Monitoring and evaluating</p> Signup and view all the answers

    Why is it crucial to acknowledge reputation in an Authorized Institution's business sustainability?

    <p>Because reputation influences sustainability</p> Signup and view all the answers

    What is a key aspect encountered by individuals or corporations in the second line of defence within the banking industry?

    <p>Ethical and compliance issues</p> Signup and view all the answers

    Which of the following is NOT a part of the intended learning outcomes related to the second line of defence in the context of a broader risk environment?

    <p>Developing new financial products</p> Signup and view all the answers

    In the context of building an effective risk management framework, what is a critical area to focus on?

    <p>Exercising requirements under the regulatory landscape</p> Signup and view all the answers

    What should individuals in the second line of defence aim to do regarding business ethical situations?

    <p>Apply the principles and management of business ethical situations</p> Signup and view all the answers

    What is one way to demonstrate an understanding of corporate governance requirements?

    <p>Adopting the requirements related to corporate governance effectively</p> Signup and view all the answers

    Which area should individuals focus on to build a culture for effective management of governance, risk, and compliance in financial institutions?

    <p>Identifying and applying principles of business ethics</p> Signup and view all the answers

    Which of the following is NOT listed as one of the 8 categories of inherent risks in banks by HKMA?

    <p>Economic risk</p> Signup and view all the answers

    What is a key element that a sound risk management environment should include according to the text?

    <p>Sufficient board and senior management oversight</p> Signup and view all the answers

    What are some factors that banks need to assess in order to properly manage risk according to the text?

    <p>Data availability and staff expertise</p> Signup and view all the answers

    Which of the following is a key aspect that banks should have embedded in their culture according to the text?

    <p>Risk tolerance</p> Signup and view all the answers

    What is the name of the book referenced in Chapter 3.6 for Risk Management in Banking?

    <p>&quot;Risk Management in Banking&quot; Fourth Edition</p> Signup and view all the answers

    Which of the following is NOT part of a well-established internal control according to the text?

    <p>Risk concealment</p> Signup and view all the answers

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