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QUESTION 1 The Basel Committee on Banking Supervision 'Guidelines - Corporate governance principles for banks' states that A fundamental component of good governance is a corporate culture of reinforcing appropriate norms for responsible and ethical behaviour. These norms are especially critical in terms of a bank's risk awareness, risk-taking behaviour and risk management (ie, the bank's "risk culture). In order to promote a sound corporate culture, the board should reinforce the tone at the top" Describe the steps that a Board should take to reinforce the "tone at the top. (20 marks) QUESTION 3 Approaches to dealing with ethical problems in finance range from: establishment of ethical codes for staff of financial institutions; fit and proper criteria for industry personnel; introduction of corporate governance rules. Using the Guidelines for Business Conduct for Scotiabank, state how the guidelines define conflict of interest' and give five (5) examples of conflicts of interest contained in the guidelines. (20 marks)