Financial Risk Manager Part 1

Explanation

According to the Code of Conduct for Financial Risk Managers, it is crucial for members to maintain full transparency and fairness in all their professional dealings. This includes disclosing any potential conflicts of interest that could interfere with their duties to their employer, clients, or potential clients.

In Timothy's case, accepting the part-time role at KPMG could potentially create a conflict of interest with his full-time role at KenBright. Therefore, the most appropriate course of action would be for him to accept the role only if his current employer, KenBright, fully agrees to the terms of the engagement. This would ensure that his actions are in line with the principles of independence, objectivity, and fairness as stipulated by the Code of Conduct.

Why other options are incorrect:

Choice A is incorrect: While conflicts of interest should be avoided, the mere acceptance of part-time work does not necessarily create a conflict of interest. It would depend on the nature of the work and whether it interferes with Timothy's duties at KenBright Limited.

Choice B is incorrect: The decision to accept additional employment should not solely be based on personal interest and familiarity with the work. Professional conduct guidelines require that Timothy consider potential conflicts of interest and obtain approval from his current employer, KenBright Limited.

Choice D is incorrect: Although it's important for Timothy to assess whether the part-time role interferes with his duties at KenBright Limited, this alone isn't sufficient according to professional conduct guidelines. He must also seek approval from his current employer before accepting additional employment.