Professional Risk Managers' International Association
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Professional Risk Manager
The Professional Risk Manager designation is an international professional certification offered by PRMIA. The designation was first awarded in 2004. The PRM is an "independent validation" of skills within the financial risk management profession, additionally requiring a commitment to professional ethics. The PRM and the Global Association of Risk Professional's FRM are often compared as being the two definitive risk management designations in the industry.Candidates are required to pass four exams:
- Finance theory, financial instruments and financial markets
- Mathematical foundations of risk measurement
- Risk management practices
- Case studies, PRMIA standards of best practice, conduct and ethics, bylaws
As of 2019, the above are replaced by two sequential papers, with differing requirements: the first two exams are combined, and the second two.
The recommended reading material is the seven volume Professional Risk Managers' Handbook edited and authored by various practitioners and academics, including Salih Neftci and Paul Wilmott. PRM Online Training is available for those who wish to access customized online learning.
Minimum experience requirements are: four years without a bachelor's degree; two years for those with bachelor's degrees; no requirements for holders of a relevant graduate degree or of an accepted :Category:Professional certification in finance|professional designation. To maintain the designation holder's are required to complete 20 "Continuing Risk Learning" credits each year, to renew their "Sustaining Membership", and to uphold the professional and ethical standards as defined by the PRMIA Standards of Best Practice, Conduct and Ethics.
Certificate programs
PRMIA offers various stand-alone certificate programs designed to give a "focused" and "practical" understanding of various areas of risk management. As for the PRM, the passing score for these is 60%. The computerized tests are offered on all business days. To maintain certification one is required to uphold PRMIA’s professional and ethical standards.- The Associate PRM covers the core risk management concepts in a less mathematical fashion than the PRM, "allowing non-specialists to interpret risk management information and reports". A single 3 hour exam is required; the recommended text is The Essentials of Risk Management.
- The Operational Risk Manager Certificate prepares managers to "implement risk assessment initiatives, produce risk management information and understand basic modeling techniques". The exam is 2 hours duration. Preparation is the practitioner-authored Operational Risk Manager Certificate Handbook. ORM Online Training is also available.
- The Credit and Counterparty Risk Manager Certificate focuses on a practical understanding of credit risk analysis frameworks within financial institutions. The program is designed to be relevant to credit risk staff, as well as to financial controllers, and compliance and legal officers. The exam is 2 hours duration. Preparation is the Credit and Counterparty Risk Manager Handbook.
- The Market, Liquidity and Asset Liability Management Risk Manager Certificate covers the areas of market risk, liquidity risk, and asset liability management, and similarly focuses on application in financial institutions. The exam is 2 hours duration. Preparation is the Market, Liquidity and Asset Liability Management Risk Manager Handbook.
Education and professional development