Skip to content

FRM Part I · FRM Exam Part I · GARP Code of Conduct

A former employer's risk analyst joins a new firm. A colleague asks her to bring the old firm's proprietary VaR methodology documents to speed up model building. Which is the best response under the GARP Code of Conduct?

She should refuse to use or disclose the former employer's proprietary documents and rely on general knowledge and public sources. Confidentiality obligations continue after leaving a firm, and reformatting or recalling proprietary content does not make disclosure permissible.

  1. AProvide the documents, since she helped develop the methodology
  2. BProvide the documents after modifying the formatting and terminology
  3. CProvide only the sections she remembers, rather than the documents themselves
  4. DRefuse to use or disclose the proprietary documents, and build the model from her general knowledge and public sourcesCorrect

Explanation

Confidentiality duties continue after employment ends, so proprietary material cannot be taken or disclosed without authorization. Helping develop it does not give ownership. Reformatting or recalling parts of it still discloses proprietary content. General skills and public sources are acceptable.

Did you get it right without looking?

One question tells you little. A timed set on GARP Code of Conduct shows your real accuracy, how long you take and where you lose marks.

Practise GARP Code of ConductFree diagnostic mock

More GARP Code of Conduct questions