Global Association of Risk Professionals (GARP) is a

not-for-profit organization A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

and a membership association for risk managers. Its services include setting standards, training, education, industry networking, and promoting risk management practices. Founded in 1996 and headquartered in Jersey City, New Jersey, with additional offices in

London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...

Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...

Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

, and

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...

. GARP offers several foundational and certificate programs, the best known of which is the ''Financial Risk Manager (FRM)'' certification. GARP also runs initiatives such as th
GARP Risk Institute (GRI)
an
GARP Benchmarking Initiative (GBI)
for research and thought leadership efforts within the risk purview.

History

GARP was founded in 1996 by Marc Lore and Lev Borodovsky, two risk managers. They had been meeting once a week at a New York pub to talk about their chosen field with other risk colleagues and decided that a more formal organization would benefit other risk professionals. About six months later, they had 250 members from 23 countries. Before long, local chapters from around the world had been established by regional directors, offering programs for local members. In 1997, a year after they founded GARP, Lore and Borodovsky introduced the Financial Risk Manager (FRM) certification. According to GARP, as of 2021, it has 279,000 members in more than 195 countries and regions.

Financial Risk Manager (FRM)

The Financial Risk Manager (FRM) is a Master's degree equivalent

professional designation Professional certification, trade certification, or professional designation, often called simply ''certification'' or ''qualification'', is a designation earned by a person to assure qualification to perform a job or task. Not all certifications ...

issued by GARP. The FRM is well regarded, one of the flagship certifications for financial risk professionals, along with the PRM offered by the Professional Risk Managers' International Association. FRMs possess specialized knowledge in assessing risk and typically work for major

banks A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becaus ...

insurance companies Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

accounting firms Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "language ...

regulatory agencies A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous dominion over some area of human activity in a licensing and regulati ...

, and asset management firms. Certificants are in more than 190 countries and territories worldwide,Official Candidate Guide, http://storage.pardot.com/39542/121486/FRM_2017_CandidateGuide_V8.2_AG.pdf and have taken an average of two years to earn their Certification. Candidates must pass two FRM exams and attain 2 years of relevant practical work experiences prior to being certified. The curriculum incorporates the major strategic disciplines of risk management –

market risk Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility. There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the most ...

credit risk A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased ...

, operational risk, and investment management – with requisite underlying knowledge. The exams:GARP Buy Side Risk Managers Forum –Risk Principles for Asset Managers(2015.6.11) http://www.ermsymposium.org/2015/presentations/C-19.pdf #The tools used to assess financial risk: Foundations of Risk Management; Quantitative Analysis; Financial Markets and Products; Valuation and Risk Models. #Application:

Market Risk Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility. There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the most ...

Measurement and Management;

Credit Risk A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased ...

Measurement and Management; Operational- and Integrated Risk Management; Risk Management and Investment Management; Current Issues in Financial Markets. The FRM curriculum is incorporated into several "partner university" programs and syllabi. According to GARP's Annual Report 2021, there are 70,343 FRMs around the world as of end of 2021.

Other certificate programs

GARP offers three role-based risk certifications – the ''Financial Risk Manager (FRM)'', the ''Energy Risk Professional'' (ERP), and the ''Sustainability and Climate Risk'' (SCR). It also offers two foundational courses in risk management with its ''Foundations of Financial Risk'' and ''Financial Risk and Regulation'' programs. The ERP certification will officially be discontinued after its last offering of exams in 2021 due to the transitions in the energy marketplace. Additional to these, it provides on-going education through its

Continuing Professional Development Professional development is learning to earn or maintain professional credentials such as academic degrees to formal coursework, attending conferences, and informal learning opportunities situated in practice. It has been described as intensive ...

programming.

References

External links

* {{Authority control Risk management in business International professional associations Non-profit organizations based in New Jersey Business and finance professional associations Organizations established in 1996 Jersey City, New Jersey

History

Financial Risk Manager (FRM)

Other certificate programs

See also

References

External links