The Professional Risk Managers' International Association (PRMIA) is a non-profit, member-driven

professional organization A professional association (also called a professional body, professional organization, or professional society) usually seeks to further a particular profession, the interests of individuals and organisations engaged in that profession, and the ...

that focuses on the development and education of the risk management profession. Its membership provides a network of risk professionals working to set standards for the global risk profession. PRMIA offers the Professional Risk Manager designation and several other certificate programs for

professional certification 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 ...

purposes.

Professional Risk Manager

The Professional Risk Manager (PRM) designation is a

offered by PRMIA. The designation was first awarded in 2004. The PRM is an "independent validation" of skills within the

financial risk management Financial risk management is the practice of protecting economic value in a firm by using financial instruments to manage exposure to financial risk - principally operational risk, credit risk and market risk, with more specific variants as liste ...

profession, and

professional ethics Professional ethics encompass the personal and corporate standards of behavior expected of professionals. The word professionalism originally applied to vows of a religious order. By no later than the year 1675, the term had seen secular applic ...

. The PRM and the FRM offered by the

Global Association of Risk Professionals Global Association of Risk Professionals (GARP) is a not-for-profit organization and a membership association for risk managers. Its services include setting standards, training, education, industry networking, and promoting risk management practi ...

are often compared as being the two definitive risk management designations in the industry. PRM Candidates are required to pass two exams in sequence; both 4 hours in duration:

Finance theory, financial instruments, and financial markets; Mathematical foundations of risk measurement (
calculus Calculus, originally called infinitesimal calculus or "the calculus of infinitesimals", is the mathematical study of continuous change, in the same way that geometry is the study of shape, and algebra is the study of generalizations of arithm ...
, matrix- and
linear algebra Linear algebra is the branch of mathematics concerning linear equations such as: :a_1x_1+\cdots +a_nx_n=b, linear maps such as: :(x_1, \ldots, x_n) \mapsto a_1x_1+\cdots +a_nx_n, and their representations in vector spaces and through matrices. ...
,
probability Probability is the branch of mathematics concerning numerical descriptions of how likely an Event (probability theory), event is to occur, or how likely it is that a proposition is true. The probability of an event is a number between 0 and ...
,
statistics Statistics (from German language, German: ''wikt:Statistik#German, Statistik'', "description of a State (polity), state, a country") is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of ...
, and
numerical methods Numerical analysis is the study of algorithms that use numerical approximation (as opposed to symbolic manipulations) for the problems of mathematical analysis (as distinguished from discrete mathematics). It is the study of numerical methods th ...
)
Risk management practices (risk management frameworks apital_allocation,_regulatory_capital,_economic_capital.html" ;"title="regulatory_capital.html" ;"title="apital allocation, regulatory capital">apital allocation, regulatory capital, economic capital">regulatory_capital.html" ;"title="apital allocation, regulatory capital">apital allocation, regulatory capital, economic capital, capital adequacy], operational risk, credit risk, counterparty credit risk,
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 ...
,
liquidity risk Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price. Types Market liquidity – An asset cannot be so ...
, funds transfer pricing, FTP, Asset liability management, ALM); Case studies; ''PRMIA standards of best practice, conduct and ethics''

The exams are computer-based and the questions are all multiple choice; the passing grade is 60%. The exams must be completed over a period of up to two years; they are offered during four specific testing windows per year. Historic individual exam pass rates, under the pre-2019 structure, were 54% for Exam II (mathematics), 59% for Exams I and III (finance, and risk management), and 78% for Exam IV (standards and case studies);FAQs
/ref> with an overall completion-rate of just over 65%. The PRM program recognizes other professional designations and gives partial credit to "cross-over" candidates, as well as to graduates of select university programs. Minimum experience requirements are: four years without a

bachelor's degree A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to six ...

; two years for those with bachelor's degrees; no requirements for holders of a relevant

graduate degree Postgraduate or graduate education refers to academic or professional degrees, certificates, diplomas, or other qualifications pursued by post-secondary students who have earned an undergraduate (bachelor's) degree. The organization and struc ...

(i.e.

MBA A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...

, MSF, MQF etc.) or of an accepted

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 ...

( CFA, CAIA, CQF, etc.). To maintain the designation, holders 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''.

Other certificate programs

PRMIA offers various stand-alone certificate programs designed to give a focused and foundational 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".Home , Professional Risk Managers' International Association - PRMIA
/ref> 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 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 ...

liquidity risk Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price. Types Market liquidity – An asset cannot be so ...

, and

asset liability management Asset and liability management (often abbreviated ALM) is the practice of managing financial risks that arise due to mismatches between the assets and liabilities as part of an investment strategy in financial accounting. ALM sits between risk ...

, 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''.

Professional Risk Manager

Other certificate programs

See also

References

External links