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Answer: Removal of the GARP Member's right to use the FRM designation
## Explanation The correct answer is **C. Removal of the GARP Member's right to use the FRM designation**. **Analysis of options:** - **A**: GARP typically does not automatically notify employers of violations unless there are exceptional circumstances - **B**: GARP cannot suspend someone's right to work in the profession - this is regulated by employers and regulatory bodies - **C**: **CORRECT** - GARP can revoke the right to use the FRM designation for serious violations of the Code of Conduct - **D**: While ethics training may be recommended, it's not typically a formal consequence of Code violations **GARP's disciplinary authority:** - GARP has the authority to suspend or revoke membership - Can remove the right to use FRM designation - Can impose other sanctions as appropriate - Cannot regulate employment rights or professional licensing (that's the role of employers and regulators)
Author: LeetQuiz Editorial Team
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A newly hired risk analyst at a bank is a certified FRM. The analyst is reviewing the bank's policies and procedures related to employee conduct and notices areas where they conflict with the GARP Code of Conduct. Which of the following is a potential consequence of violating the GARP Code of Conduct once a formal determination is made that such a violation has occurred?
A
Formal notification of a violation sent to the GARP Member's employer
B
Suspension of the GARP Member's right to work in the risk management profession
C
Removal of the GARP Member's right to use the FRM designation
D
Required participation by the GARP Member in ethics training
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