Skip to content

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

Which of the following best captures the primary purpose of the GARP Code of Conduct?

The Code of Conduct provides a framework of ethical principles and professional standards that promotes integrity and protects the interests of the risk management profession and its stakeholders. It does not prescribe modeling techniques, govern exam scoring, or substitute for applicable laws and regulations.

  1. ATo set out the technical risk models that members must use when measuring market and credit risk
  2. BTo establish a framework of ethical principles and professional standards intended to promote integrity and the interests of the risk professionCorrect
  3. CTo define the pass mark and scoring procedure for the FRM examinations
  4. DTo replace the legal and regulatory obligations that apply to members in their jurisdictions

Explanation

The Code is an ethics framework setting principles and professional standards for members, supporting integrity and the reputation of the risk management profession. It does not prescribe models or exam scoring, and it does not replace law; members must still comply with applicable laws.

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