Answer: Disclose the situation to his employer and, if given the green light to prepare a report, also disclose his new status as a beneficiary of BWL stocks.

## Explanation Richard Leakey should disclose the situation to his employer and, if given permission to prepare a report, also disclose his new status as a beneficiary of BWL stocks. This is because, as a member of the Global Association of Risk Professionals (GARP), Leakey is obligated to disclose any actual or potential conflict of interest to all affected parties. ### Key Reasons: - **Comprehensive Disclosure**: The disclosure should be comprehensive and fair, especially if there is a possibility that it could compromise his independence or objectivity, or interfere with his employer's or clients' interests. - **Financial Interest**: Leakey has a financial interest in BWL shares and also has voting rights, creating a clear potential conflict of interest. - **Employer Authorization**: He must inform his employer about the potential conflict of interest and should only continue to monitor BWL after his employer has given him the go-ahead. ### Why Other Options Are Incorrect: - **Choice A**: Even though Leakey is not a beneficiary of the shares at present, he still has voting rights and stands to benefit in the future, which could influence his analysis. - **Choice B**: While notifying superiors is good practice, complete abstention may not be necessary if proper disclosures are made and approved. - **Choice C**: Requesting his uncle to amend trust terms doesn't address the immediate conflict of interest issue; disclosure is the appropriate first step. This approach aligns with professional ethics standards that require transparency and management of conflicts of interest in financial analysis and risk management roles.

Author: Tanishq Prabhu