Which of the following is a principle of the remuneration code?

The principle of the remuneration code emphasizes the need for effective and responsible remuneration practices within financial institutions to align with sound risk management and not to promote reckless behavior. Exceptional government intervention is included in this context as it suggests that, in extraordinary circumstances, government oversight and involvement may be necessary to ensure that remuneration practices do not undermine the stability of the financial system. This aligns with broader regulatory goals to foster a culture of accountability and ethical behavior in the financial sector.

The other choices highlight detrimental practices that the remuneration code seeks to avoid. Aggressive profit maximization strategies could lead to overlooking risk factors, while focusing solely on personal benefit would promote self-serving behavior over the interests of the institution and its stakeholders. Limiting risk management and tolerance undermines the entire purpose of conscientious remuneration practices, which are designed to balance incentives with an organization's risk landscape.