Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Ultimate access to all questions.
As a newly appointed bank risk analyst who holds a certification in Financial Risk Management (FRM), part of your responsibility includes reviewing the institution's employee conduct guidelines. In the process, you have identified certain discrepancies between these guidelines and the Global Association of Risk Professionals (GARP) Code of Conduct. What potential consequence could arise if it is officially determined that there has been a violation of the GARP Code of Conduct?
Explanation:
According to the GARP Code of Conduct, “violation(s) of this Code may result in, among other things, the temporary suspension or permanent removal of the GARP Member from GARP's Membership roles, and may also include temporarily or permanently removing from the violator the right to use or refer to having earned the FRM designation or any other GARP granted designation, following a formal determination that such a violation has occurred.” This means that if a GARP member violates the Code of Conduct, one of the potential consequences is the removal of their right to use the FRM designation, which is the correct answer, option C. The other options, A, B, and D, are incorrect as they are not listed as consequences in the Code of Conduct.