![]() In the field of risk management, the ERM is one of the only designations that has or is about to have a continuing education requirement. GARP is in the process of creating a continuing education program and requirements for the ERM certification, which will most likely become a requirement in 2010. These professionals must also be members of GARP. The ERM certification is obviously for energy industry risk managers, who must also have at least two years experience in the field of energy risk management. In order to qualify for the FRM, a professional must have two years related experience and must also be a member of GARP. There are only around 18,000 FRM’s in the world, which is a small number for a professional certification that is recognized around the world. The FRM, according to GARP, is one of the certifications that is currently desirable to recruiters who are looking to fill senior risk manager positions. GARP offers two major risk management certifications, the FRM, or Financial Risk Manager, and the ERM, or Energy Risk Professional. In the industry at large, hiring managers often use the PRM designation as a measurement for the most desirable risk management skills. The candidate must be a member of PRMIA in order to sit for the certification exams, and, as in many cases with professional certifications, the candidate with other industry certifications, such as the CFA (Chartered Financial Analyst) may have an easier time attaining the PRM. Also, the PRM tests an individual’s ability to not only know best practices but his or her ability to apply those best practices in the appropriate situations. The certification does stress professional standards and integrity in addition to skills and knowledge. The PRM is essentially a validation of skills that are most likely picked up in every day work in the risk management arena. PRMIA calls the PRM certification “The Higher Standard in Risk Management” and is very flexible on how professionals prepare for the certification exams. PRMIA offers the Professional Risk Manager certification, or PRM. Both of these organizations show their certifications as widely recognized and accepted, although the organizations approach certifications differently. There are two major groups offering risk management certifications: the Professional Risk Managers’ International Association (PRMIA) and the Global Association of Risk Professionals (GARP). ![]() In today’s uncertain financial environment, professional certifications can go a long way to calm investors and regulators, as well as restore faith in the financial system in general.īut before we look at the organizational and individual benefits of the most common risk management certifications, we should spend some time becoming generally familiar with the certifications and the groups that offer them. In the financial field, personnel involved in risk management can obtain several important certifications from two major international groups. Professional certifications are important to both the individuals that obtain them as well as the organizations in which those individuals work.
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