Answer-first summary for fast verification
Answer: The manager violates the GARP Code of Conduct because the manager discloses some of the bank's confidential information.
**A is correct.** The manager reveals confidential information (risk-adjusted returns of specific clients) in the public report. GARP Members are required to take all reasonable precautionary measures to prevent intentional and unintentional disclosure of confidential information. **B is incorrect.** The manager uses facts to support the conclusion and does not overstate the strength of the bank's risk management practices. **C is incorrect.** This scenario does not involve distinguishing facts and opinions. **D is incorrect.** The manager violates the GARP Code of Conduct as the manager discloses the confidential information of the bank.
Author: LeetQuiz .
Ultimate access to all questions.
No comments yet.
A certified FRM working as a risk manager at a bank is asked by the CRO to present a report to the public on the bank's compliance with industry best practices in risk management. The risk manager includes information about risk adjusted returns of specific clients in the report to support the conclusion that the bank's risk management practices are strong. Which of the following statements is most appropriate regarding the adherence of the manager's behavior to the standards of the GARP Code of Conduct in this situation?
A
The manager violates the GARP Code of Conduct because the manager discloses some of the bank's confidential information.
B
The manager violates the GARP Code of Conduct because the manager overstates the strength of the bank's risk management practices in the report.
C
The manager violates the GARP Code of Conduct because the manager does not distinguish between facts and opinions.
D
The manager does not violate the GARP Code of Conduct.