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Answer: Removal of the GARP Member's right to use the FRM designation
The correct answer is C, which states that a violation of the GARP Code of Conduct may lead to the removal of the GARP Member's right to use the FRM designation. This is in accordance with the GARP Code of Conduct, which outlines that violations could result in the suspension or removal of membership roles and the right to use the FRM designation or any other designation granted by GARP. The other options provided, such as formal notification to the employer (A), suspension of the right to work in risk management (B), and required participation in ethics training (D), are not mentioned as consequences within the Code of Conduct. Therefore, they are considered incorrect.
Author: LeetQuiz Editorial Team
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A newly hired risk analyst, holding the Financial Risk Manager (FRM®) certification, is tasked with reviewing the organization's policies and procedures regarding employee conduct. During this evaluation, the analyst identifies inconsistencies between the institution's guidelines and the Code of Conduct set forth by the Global Association of Risk Professionals (GARP). What might be a potential consequence of violating the GARP Code of Conduct following an official acknowledgment of the infraction?
A
Formal notification of a violation sent to the GARP Member's employer
B
Suspension of the GARP Member's right to work in the risk management profession
C
Removal of the GARP Member's right to use the FRM designation
D
Required participation by the GARP Member in ethics training