Sample interview questions: How do you incorporate ethical considerations into your financial analysis and decision-making?
Sample answer:
- Consider the impact of investment decisions on stakeholders. This includes evaluating the potential financial, social, and environmental impacts of an investment on all parties involved, including employees, customers, suppliers, the community, and shareholders. For example, an analyst may evaluate the environmental impact of a mining operation before recommending an investment in the company that owns the mine.
- Adhere to ethical guidelines and industry standards. Financial analysts are bound by ethical guidelines and industry standards that require them to act in the best interests of their clients and the public. These guidelines include the CFA Institute Code of Ethics and Standards of Professional Conduct and the Securities and Exchange Commission’s (SEC) Rule 206(4)-7.
- Avoid conflicts of interest. Financial analysts must avoid conflicts of interest that could compromise their objectivity and decision-making. This includes avoiding situations where they ha… Read full answer