How Conflict of interest arises?

A conflict of interest arises when a person chooses personal gain over his duties to the employer or exploits his position for personal gain in some way. In banks, as a general rule, people of top management or Managers or employees should avoid conducting bank’s business with a relative or any other person or any firm, company, association in which the relative or other person is associated in any significant role. In such a related party transaction is unavoidable, they must fully disclose the nature of the related party transaction to the appropriate authority. Any dealings with a related party must be conducted in such a way that no preferential treatment is given to the party.
Some of the other examples of where conflict of interest arises are as under.

Sanctioning of a loan by the Manager to close relatives like wife, son, daughter, son-in-law, brother-in-law, daughter-in-law, sister-in- law etc.
Waive-off overdue interest on loan, processing charges which are against the norms of the bank.
Write-off of loan accounts at the branch by the Manager without the higher authorities’ permission.
An external or internal auditor of a company knowingly is a party to any illegal activity, or engages in acts that are discreditable to the profession.
A lawyer firm accepting a new client who is adverse to other clients the firm has represented, past and present.
If the client is looking to sue a particular business that happens to be owned by the lawyer’s friend, there’s a clear conflict of interest for the attorney.
A defendant (opposing) counsel is represented by a lawyer who is related to plaintiff’s lawyer.
Doctors’ relationships with drug companies (including any payments or gifts received from the companies) who prescribe particular drug of the company to patients because of his relationship with the company.
Doctors who own testing facilities or treatment centers may preferentially refer patients to these facilities for care and may benefit financially from doing so.
A teacher engages in private tutoring, there is a risk that an actual, potential or perceived conflict of interest exists.
A purchase manager accepts trips and gifts from a vendor and then selects the vendor’s products for purchase by the company.

1.What are Cyber Threats of different types?

2.Ethics in banks and financial institutions

3.What are Intellectual Property Rights?

4. What are Data Security and Privacy?

5. Whistle-blowing in Banks explained

6.Whistle-Blower and Whistle-blowing law in India explained