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Answer: The manager violates the GARP Code of Conduct because the manager discloses some of the bank's confidential information.
The manager's behavior is considered a violation of the GARP Code of Conduct because they disclose confidential information, specifically the realized loss recovery rates, in a public report. According to the Code of Conduct outlined by the Global Association of Risk Professionals (GARP), members are expected to take all reasonable measures to prevent both intentional and unintentional disclosure of confidential information. The correct answer is A, as it directly addresses the issue of confidentiality, which is a key principle in the Code of Conduct. The other options (B, C, and D) do not accurately reflect the violation that has occurred in this scenario.
Author: LeetQuiz Editorial Team
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A certified Financial Risk Manager working at a bank is tasked by the Chief Risk Officer to create a public report demonstrating the bank's compliance with the industry's best practices in risk management. To substantiate the claim that the bank's risk management strategies are effective, the risk manager opts to include information on the risk-adjusted returns of specific clients in the report. Considering this situation, which of the following statements most accurately represents the manager's adherence to the GARP Code of Conduct?
A
The manager violates the GARP Code of Conduct because the manager discloses some of the bank's confidential information.
B
The manager violates the GARP Code of Conduct because the manager overstates the strength of the bank's risk management practices in the report.
C
The manager violates the GARP Code of Conduct because the manager does not distinguish between facts and opinions.
D
The manager does not violate the GARP Code of Conduct.
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