CRM Ethical Standards & Professional Conduct

Question 1

Which principle requires a Certified Relationship Manager to always act in the best interest of the client rather than pursuing personal gain?

Accepted Answer

Fiduciary duty

Answer

Confidentiality

Answer

Competency

Answer

Transparency

Question 2

A CRM professional discovers a colleague is sharing confidential client data with third parties without consent. The BEST first step is to:

Accepted Answer

Report it through the firm's internal compliance channel

Answer

Ignore it to avoid conflict

Answer

Confront the colleague publicly

Answer

Inform the client immediately without escalating internally

Question 3

Which of the following best describes a conflict of interest in relationship management?

Accepted Answer

Offering a product the client doesn't need because it pays higher commission

Answer

Recommending a diversified portfolio

Answer

Documenting all client interactions

Answer

Scheduling quarterly reviews

Question 4

Under the CRM Code of Ethics, which obligation requires professionals to maintain accurate and complete records of client interactions?

Accepted Answer

Accountability

Answer

Suitability

Answer

Competency

Answer

Loyalty

Question 5

A CRM professional receives a gift from a vendor whose products are recommended to clients. According to ethical guidelines, the professional should:

Accepted Answer

Disclose it to compliance and assess whether it influences objectivity

Answer

Accept it as a token of appreciation

Answer

Return it only if it exceeds $500

Answer

Only disclose it to their direct manager

Question 6

The principle of 'suitability' in the CRM context primarily means:

Accepted Answer

Recommending products or services that match the client's needs, goals, and risk tolerance

Answer

Ensuring the firm's products generate maximum revenue

Answer

Providing the lowest-cost option always

Answer

Matching clients with the most popular products