hard · FRM Part 1
According to the GARP Code of Conduct, if a risk professional discovers a significant error in a colleague's model that is being used for regulatory reporting, their first responsibility is to:
- Sell the firm's stock before the error becomes public to protect their personal wealth.
- Publicly announce the error on a professional networking site to warn other institutions.
- Quietly fix the error themselves without telling anyone to avoid embarrassing their colleague.
- Immediately report the error to the appropriate supervisor or compliance officer within the firm.
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