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

A risk manager at a bank receives a request from a journalist for details of a named corporate client's internal risk limits, which the manager obtained through his role. The client has not consented, and no legal requirement compels disclosure. Which response follows the GARP Code of Conduct?

The manager should decline to disclose. The Code bars sharing confidential client information without consent or a legal obligation, and neither exists here. Hiding the bank's name, sharing only part of the data, or relying on the journalist's promise does not remove the breach.

  1. AShare the limits but ask that the bank not be named
  2. BShare only the limits that seem unimportant
  3. CShare the limits if the journalist promises to verify them first
  4. DDecline to disclose the informationCorrect

Explanation

Members must not disclose confidential information obtained in the course of work unless the client consents or a legal or regulatory requirement applies. Anonymizing the source, partial sharing, or a promise by the journalist do not change the lack of authorization.

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