easy · FRM Part 1 Foundations of Risk Management
According to the GARP Code of Conduct, if a risk professional becomes aware of a significant conflict of interest, their primary responsibility is to:
- Ignore the conflict entirely, provided that it is unlikely to ever be noticed or discovered by regulators.
- Seek to personally profit from the conflict of interest before ever formally disclosing it to the firm at all.
- Disclose the conflict to the appropriate parties and, if necessary, recuse themselves from the decision-making process.
- Immediately resign from their position outright, in order to avoid any appearance of impropriety whatsoever to clients or staff.
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