- CFA Exams
- 2022 Level I
- Topic 10. Ethical and Professional Standards
- Learning Module 56. Ethics and Trust in the Investment Profession
- Subject 3. Challenges to Ethical Conduct
Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Subject 3. Challenges to Ethical Conduct PDF Download
Challenges to ethical behavior include:
- the overconfidence bias. Most of us simply assume that we are good people and will therefore make sound ethical decisions. This overconfidence in one's own moral compass can lead to making decisions without serious ethical reflection.
- situational influences, which are external factors such as environmental or cultural elements. They can motivate individuals to act in their short-term interests without recognizing the long-term risks or consequences for themselves and others. Examples include financial rewards, prestige, and loyalty to employer and colleagues.
Learning Outcome Statementsf. identify challenges to ethical behavior;
CFA® 2022 Level I Curriculum, Volume 6, Module 56
User Contributed Comments 3
|rodwsi||Situational influences include money, bonuses, promotions, prestige and loyalty to employer/colleagues.|
|bushi||It's fascinating to see how common it is to hear fund managers state something like, "I know everyone thinks they're above average, but I really am."|
|chop21||The overconfidence bias is our tendency to be more confident in our ability to act ethically than is objectively justified by our abilities and moral character.|
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
My Own Flashcard
No flashcard found. Add a private flashcard for the subject.