T8 – 5R Strategic Consultancy Sdn Bhd

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Test 8

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Which of the following best describes a Code of Ethics?

Set of checklist for compliance with rules and regulation

Moral principles or values deem to be good for a group and generally accepted and practice voluntarily as a guide for good conduct

A technical manual that outline how to perform a task correctly and safely

A legally binding set of rules that govern employee behavior

Which of the followings are characteristics of Code of Ethics?

I. Not legally binding, but important for trust and integrity
II. More detailed and specific
III. General and principle based
IV. Often develop by regulatory bodies or industry associations

II and III

II and IV

All the above

I and III

A company's policy that prohibits employee from accepting gifts over RM500 would typically be found in which of the following?

Code of Ethics

Employee Benefits Manual

Code of Practice

Code of Conduct

Which of the following would most likely be included in a Code of Practice issued by Bank Negara Malaysia?

Ethical principles such as integrity and honesty

Technical procedures for responsible credit assessment and risk management

Guidelines on punctuality and dress code for employees

Steps for resolving conflicts between co-workers

Code of Conduct mainly focus on?

Professional standards

Behavior at work

Moral and values

Overall supervision and contract

Based on BNM Guideline GP7, the followings are core principles Code of Conduct for both bank officers and directors

I. Avoid conflict of interest
II. Avoid abuse of power and position
III. Maintain and ensure accuracy and integrity of record
IV. Prevent misuse of information

I and II

III and IV

All the above

I, III and IV

Which of the following is NOT typically a core value found in a Code of Ethics?

Nepotism

Accountability

Fairness

Integrity

Besides laws and regulations exists, Code of Conduct is still necessary because

Laws and Regulations can only cover foreseeable issue and promote good practice

Code of conduct is complementary to the Laws and Regulations affecting banking

Laws and Regulations insufficient to cover all possible cases of unethical behavior, owning to dynamic business environment and creativity of business executives

Code of conduct is more specific and relevant to the organization

Corporate Governance in organizations refer to

Overall supervision and control of directors and senior management of a company and the safeguards designed to protect and enhance the interest of the stakeholders

Board of Directors and Key Responsible Persons duties and responsibilities to contract every possible misdeed or inaction by employee in every business activity

Action taken to prevent mismanagement by Key Responsible Persons in the organizations

Best practices recommended under the Malaysian Code of Corporate Governance (MCCG 2012)

Which of the following best defines conflict of interest?

When a manager disagrees with a subordinate

When two employees compete for promotion

When personal interests interfere with professional duties

When an employee accepts tasks from multiple departments

Which body in Malaysia provides corporate governance guidelines for listed companies?

BNM

FIC

EPF

Bursa Malaysia

Which of the following are the common components of good corporate governance

I. Accountability & Transparency
II. Code of Conduct
III. Ethical Behavior
IV. Fairness

I and IV

All the above

I, III and IV

II and III

What does accountability in corporate ethics means?

Being answerable for one's actions and decision

Avoiding responsibility

Sharing blame with others

Delegating authoring without follow up

A Code of Practice is best described as:

A set of technical or professional standards

A moral guideline for personal behaviour

A company's logo and branding guideline

A listing of staff holidays

Which statement about ethics and the law is TRUE?

Ethical behavior may go beyond legal requirements

Legal compliance guarantees ethical conduct

Ethics and law are always the same

All ethical actions are always legal

A company director who uses insider information for personal gain is violating

Customer service principles

Ethical, legal and governance principles

Conflict resolution policy

Confidentiality only

What is the main purpose of BNM "Fit and Proper Criteria" for directors and key responsible persons in financial institutions?

To ensure individuals are competent, honest, and act with integrity

To promote shareholder activism

To reduce staff turnover

To determine their salary packages

Under BNM's Fit and Proper Guidelines, which of the following is NOT a key criterion used to assess a person's suitability?

Experience and competence

Political affiliation

Probity, personal integrity, and reputation

Financial standing

A director who was previously convicted of fraud is most likely to fail which fit and proper assessment criterion?

Language proficiency

Educational qualification

Age requirement

Personal integrity and reputation

Key Responsible Persons refer to persons that are accountable or responsible for the management or oversight of the FI. This Comprise

I. Directors
II. Members of Shariah Committee
III. Chief Executive Officer
IV. Senior Officer

I and III

All the above

I, III and IV

I, II and III

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Certificate in Credit
Test 8