Conflict of Interest Management Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Conflict of Interest Management flashcards as text
A compliance officer discovers that a senior executive failed to disclose a significant financial interest in a company that received a major contract. What should the officer do FIRST?
Answer: Document the finding and report it through established escalation channels
Compliance officers must document findings and report through proper channels before any disciplinary or remedial action occurs.
Which scenario BEST illustrates a 'revolving door' conflict of interest?
Answer: A government regulator accepts a senior role at a company she previously regulated
The 'revolving door' refers specifically to movement between regulatory/government roles and the private sector being regulated.
An organization's conflict of interest policy requires annual disclosures. An employee's situation changes significantly mid-year. Under best practices, the employee should:
Answer: Disclose the change promptly when it occurs
Best practice requires ongoing or prompt disclosure whenever material changes occur, not just at scheduled intervals.
A nonprofit board member uses inside knowledge of the organization's planned land purchase to personally buy adjacent property first. This is MOST accurately described as:
Answer: Self-dealing and a breach of fiduciary duty
Using confidential organizational information for personal gain constitutes self-dealing and a serious breach of fiduciary duty.
Which of the following MOST effectively reduces unconscious bias in conflict of interest situations?
Answer: Implementing blind review processes and structured decision criteria
Blind reviews and structured criteria reduce the influence of unconscious bias by removing identifying information and standardizing evaluation.
A supervisor who is romantically involved with a subordinate refuses to recuse herself from the subordinate's performance review. The PRIMARY ethical problem is:
Answer: Compromise of objective evaluation due to personal interest
The core ethical issue is that the personal relationship undermines the ability to conduct a fair, objective performance evaluation.
When an organization 'manages' rather than eliminates a conflict of interest, which safeguard is MOST important?
Answer: Establishing ongoing monitoring and documentation of the managed conflict
Managed conflicts require continuous oversight and documentation to ensure the conflict does not actually compromise decisions over time.