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Answer: Withdrawal of the GARP member's right to use the FRM designation for any purpose.
## 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.
Author: Tanishq Prabhu
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A formal investigation that confirms violation of the GARP Code of Conduct can bring about serious consequences. Which of the following is a potential consequence of such a violation?
A
Mandatory participation in ethical training.
B
A temporary suspension of the GARP member's right to work in the field of risk management.
C
Withdrawal of the GARP member's right to use the FRM designation for any purpose.
D
A formal request to the GARP member's employer to withdraw certain benefits such as bonuses and other fringe benefits.
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