Financial Risk Manager Part 1

Jessica should reject the gift. The Global Association of Risk Professionals (GARP) Code of Conduct clearly states that members should not offer, solicit, or accept any gift, compensation, or consideration that could reasonably be expected to compromise their objectivity and independence. This rule applies regardless of whether a contract has lapsed or not. The client could potentially seek professional assistance in the future, and accepting the gift could create a conflict of interest or the perception of one. Therefore, to maintain her professional integrity and adhere to the GARP Code of Conduct, Jessica should politely decline the gift.

Choice A is incorrect. Even though the contract has lapsed, accepting such a high-value gift can create a conflict of interest and may be perceived as a bribe or an attempt to influence future business decisions. This would violate the professional ethics and standards of conduct that Jessica, as an FRM, is expected to uphold.

Choice B is incorrect. Informing her employer about the gift does not eliminate potential conflicts of interest or ethical concerns. The value of the gift is substantial enough to potentially influence Jessica's decision-making in future dealings with this client, which could compromise her professional integrity.

Choice D is incorrect. While redirecting the gift to her employer might seem like a solution, it still doesn't address potential ethical issues. It could still be seen as an attempt by the client to curry favor with Jessica's employer for future contracts or business deals.