Portfolio Risk Management Techniques and Ethical Considerations
400-600 words
(Library) Alex C. Grovner, the principal of ACG, has been meaning to implement a corporate code of ethics for the company for many years but has not yet done so. Alex wants you to help him get started with this project by doing the following:
- Use the Library, Internet, and other resources to research and develop a list of at least four (4) reasons why ACG could benefit from the implementation of a corporate code of ethics.
- Review the Chartered Financial Analysts (CFA) code of ethics and explain why the principles of suitability, confidentiality, and diligence are so important in the investment advisory services sector.
- Write a preliminary code of ethics for ACG to be presented and evaluated by the firm’s business steering committee
Solution Preview
Risk Management Techniques: Ethical Conduct
A code of ethics is one of the primary sources of guidance for any organization, which determines appropriate action, acceptable to the firm, under different circumstances. In particular, the existence of a code of ethics within any organizational setting guarantees that the employees remain aware of the management’s expectations in terms of ethical behavior. Consequently, some of the most significant benefits of having a code of ethics in an organization include ethical conduct among employees, consistency in decision-making, improvement in trust among the workers and between workers and the management, and ultimately helping improve the brand reputation through ethical conduct.
(585 words)