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

Daniel is an FRM charterholder who learns that a colleague, also a GARP Member, has knowingly breached the Code. Which view of the Code's purpose is most consistent with Daniel's responsibilities?

Members are expected to uphold the Code and support the integrity of the risk profession, which means not tolerating known violations and cooperating with GARP in its investigations. Confidentiality or the idea that only GARP staff matter does not excuse ignoring a known breach.

  1. AThe Code binds only the individual who breaches it, so Daniel has no responsibilities
  2. BDaniel must keep quiet to protect confidentiality of his firm in every case
  3. CMembers are expected to uphold and support the Code and the integrity of the profession, and not to tolerate violationsCorrect
  4. DOnly GARP staff may act on suspected violations, so members should disregard them

Explanation

The Code expects members to support the integrity of the profession and to comply with the Code, including cooperating with GARP investigations. Silence is not mandated by confidentiality when a violation exists, and members are not told to disregard breaches.

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