Financial Risk Manager Part 1

Explanation

The correct answer is C - Withdrawal of the GARP member's right to use the FRM designation for any purpose.

Key Points:

• The Global Association of Risk Professionals (GARP) has a strict Code of Conduct that all members must adhere to
• Violations of this Code can lead to severe professional consequences
• The most serious consequence mentioned in the GARP Code of Conduct is the withdrawal of the right to use the FRM designation
• This means the member would no longer be able to refer to themselves as a Financial Risk Manager (FRM)

Why Other Options Are Incorrect:

• A: While ethical training could be beneficial, it is not a mandatory consequence specified in the GARP Code of Conduct
• B: GARP does not have the authority to suspend a member's right to work in the field of risk management - this would require regulatory action
• D: GARP cannot formally request an employer to withdraw benefits - this would interfere with the employment relationship

Importance:

This consequence is designed to maintain the integrity and credibility of the FRM designation, which is a globally recognized professional certification in risk management. The severity of this penalty reflects how seriously GARP takes violations of its ethical standards.