28 Questions
What is a potential benefit of practicing good business ethics according to the text?
Boost stock price
Which ethical theory is associated with behavior where an individual only thinks of their own interest and ignores the impact on others?
Egoism
According to the 'Bank of Integrity' Guide by the ICAC, which staff behavior might NOT warrant closer observation for integrity issues?
A staff member asks for promotion frequently
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?
Conflict of interest does not need to be disclosed
What are the key takeaways from the bank run events mentioned in the text?
The importance of maintaining ethical standards in business decisions
Which of the following is NOT mentioned as an aspect of ethical standards at the organizational level in business decisions?
Corporate competitiveness
What do the Equator Principles focus on in relation to banks involved in project finance?
Sustainability and environmental impact of projects
How does institutionalizing business ethics contribute to the reputation of banks?
By aligning with industry norms and expected programs
What is the role of the HKMA in relation to bank reputation?
Identifying drivers that affect bank reputation
What is the purpose of the OECD Guidelines for Multinational Enterprises?
Providing actionable guidelines for ethical corporate practices
What is the purpose of Phase II in the Green Finance Initiatives from the HKMA?
To engage the industry and stakeholders in consultation on supervisory expectations
What is the focus of Phase III in the Green Finance Initiatives from the HKMA?
Monitoring and evaluating banks' progress
What does the Supervisory Policy Manual RR-1 provide guidance on?
Effective reputation risk management
Which factor plays a key role in determining an Authorized Institution's sustainable future for its business?
Reputation
What aspect of banks' progress does Phase III of the Green Finance Initiatives focus on?
Monitoring and evaluating
Why is it crucial to acknowledge reputation in an Authorized Institution's business sustainability?
Because reputation influences sustainability
What is a key aspect encountered by individuals or corporations in the second line of defence within the banking industry?
Ethical and compliance issues
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?
Developing new financial products
In the context of building an effective risk management framework, what is a critical area to focus on?
Exercising requirements under the regulatory landscape
What should individuals in the second line of defence aim to do regarding business ethical situations?
Apply the principles and management of business ethical situations
What is one way to demonstrate an understanding of corporate governance requirements?
Adopting the requirements related to corporate governance effectively
Which area should individuals focus on to build a culture for effective management of governance, risk, and compliance in financial institutions?
Identifying and applying principles of business ethics
Which of the following is NOT listed as one of the 8 categories of inherent risks in banks by HKMA?
Economic risk
What is a key element that a sound risk management environment should include according to the text?
Sufficient board and senior management oversight
What are some factors that banks need to assess in order to properly manage risk according to the text?
Data availability and staff expertise
Which of the following is a key aspect that banks should have embedded in their culture according to the text?
Risk tolerance
What is the name of the book referenced in Chapter 3.6 for Risk Management in Banking?
"Risk Management in Banking" Fourth Edition
Which of the following is NOT part of a well-established internal control according to the text?
Risk concealment
Test your knowledge on business ethics with these practice questions. Explore the potential benefits of practicing good business ethics and ethical theories. Questions are based on real-life scenarios and industry standards.
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