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

A risk analyst at a regional bank is asked by a colleague what the GARP Code of Conduct is meant to do. Which description is most accurate?

The GARP Code of Conduct sets out ethical principles and professional standards for GARP Members, including FRM certification holders and candidates. It is not a technical modelling guide or a replacement for local law, and it is not limited to members who have completed the work experience requirement.

  1. AIt sets out ethical principles and professional standards that apply to GARP Members, including FRM certification holders and candidatesCorrect
  2. BIt is a technical manual describing how to compute Value-at-Risk for regulatory capital purposes
  3. CIt is a set of local securities laws that replaces the regulations of the country where a member works
  4. DIt applies only to members who have already completed the FRM work experience requirement

Explanation

The Code sets ethical principles and professional standards for GARP Members, which include FRM holders and candidates. It is not a technical or legal text, and it does not replace local law. It is not limited to those who have finished the experience requirement.

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