Slide Pack 1 Flashcards
What is the meaning of ethics in general and in professional context
Ethics means “The best way to live”
In the context of professionalism its about behaviour that is good for both the professional and for society at large
Importance of ethics to a professional body
A professional body creates a degree of monopoly power for members in return for the creation and maintenance of professional standards and a consideration of the public interest. Implicit in this is an obligation for both ethical behaviour and ethical education of members. The existence, strength and prosperity of a professional body are predicated on its ethical behaviour.
Why is ethics particular relevant in the financial sector?
Public-facing nature to the business
The sector can have a knock-on effect globally if non-ethical practices are used
Big user of tech
What is the narrative
The narrative is another word for a story - describes the big picture within which analyses are carried out. Focus is needed on reality and facts
What is the idea of a shallow narrative and its effect
It’s important to note the narrative needs to be deep enough to show the big picture without taking sides. A simple to shallow narrative usually has another simple or shallow narrative contracting it. When we have this taking one side or the other approach either one can lead to a poor outcome.
What is the relevance of expectation in a narrative
Expectation and a small scale narrative can lead in themselves to that narrative becoming a reality. If someone believes something is going to happen it can lead to it happening
Distinguish between a narrative and an analysis
An analysis typically takes place within a narrative. The narrative dominates and limits the analysis. example of the reserving actuary job is within an outside work environment narrative. The analysis part is within the context of the world where the actuary works
Explain the word psyche
Greek word Psyche to refer to the full human mind in its widest sense. It can be translated to mean Mind or soul. Tripartite model fo the psyche consists of : Nous, Logos and Pyr
Explain Nous
mind, thought or imagination for reality, intuition, reflection and the mind’s eye. It’s the mental picture of the world the individual is using. Rational mindset implements the mind’s intuition
Explain Logos
logic or rational thinking. The function of logos is to condition the mental picture created by Nous. Logos is logic everyone understands - outsiders find logical also
Explain Pyr
Pyr - Fire in the belly or impulse and drive. It is the energy used in and by the psyche
Explain the idea behind ego and what it means
Ego is the indivudal self constructed oevr time. Ego can be thought of as a filter through which an individual sees the world.
An individual sees the world partly the way the world is and partly the way they are.
Explain healthy ego vs unhealthy ego
Healthy ego means a person sees the world as it really is and constructively tries to engage with the world
Unhealthy ego means a person uses degrees of self-deception to excuse or justify their actions to make themselves feel better about the world
Explain rationalisations
When an individual makes a judgment based partly on the way they are and partly on the way the world is, this is referred to as a rationalisation
- often emotional people make more severe rationalisations
What are ego defense mechanisms
Ego defence mechanisms are a type of rationalisation that can be caused by high emotion and high expectations of something that didn’t happen. Often could be focusing on perceived deficiencies elsewhere rather than focusing on reality. Blaming everyone else.
