One of the two industry leading risk certifications, the Professional Risk Manager (PRM™) designation is a globally recognized, graduate-level risk management credential awarded by the American-based Professional Risk Managers’ International Association (PRMIA) to risk managers who have passed all four rigorous and highly technical exams within a two-year period.
The PRM Program is a series of evaluation exams, designed for the development of professional risk managers. Endorsed by leading university programs and industry firms, it is regarded by some as the global standard for risk management professionals.
The PRM Program is divided into four broad areas which are:
- Finance Theory, Financial Instruments and Markets
- Mathematical Foundations of Risk Measurement
- Risk Management Practices (Credit, Market, Liquidity, ALM, Operational Risk Modeling)
- Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws
These broad areas are designed for candidates to demonstrate knowledge and understanding of:
- the classic finance theory underpinning risk management
- the foundations of risk measurement
- the foundation of option theory
- financial instruments and their associated risks and uses
- the daily form and function of trading markets
- risk management best practices (credit, market and operational risks)
- lessons learned from failed systems and practices and major risk events
- best practices of governance, conduct and ethics
The PRM Program recognizes CFA Charterholders, Associate PRM Certificate holders and a select few Accredited University Programs, giving partial credit towards completion of the requirements for the PRM designation.
Candidates may take the exams in any order. The two-year period commences from the date of the first successful PRM examination. Candidates may take exams over more than a two-year period, but any exams passed more than two years in the past will need to be retaken.
Candidates may retake any failed exam, but must wait 60 days from the date of the failed exam.
Typical Profiles of PRM Designation holders
According to PRMIA, the PRM is valuable for people at all levels throughout their career, as evidenced by the titles of PRM Certified Professionals. They range from students to Financial Analysts and Risk Managers to Chief Risk Officers and Chief Executive Officers. The list of PRM Certified Professionals comprises staff from large banks and corporations, in addition to universities, government agencies, and other non-financial organizations. Some organizations represented include HSBC, BNP Paribas, Deutsche Bank of America, Barclays, EY, Accenture and KPMG.
Why Hold the PRM
Feeling of Accomplishment, Differentiation and More Opportunities
Along with the feeling of accomplishment for completing the coursework and exam comes the ability to set yourself apart in the industry. Less than 20% of risk professionals carry professional risk designation after their name, so PRM™ Certified Professionals have many more opportunities in the competitive job market. Businesses are recognizing the importance of the skill sets learned in the PRM™ designation, and many more are mandating the credential in their higher level positions. This means that in the near future upper managers and Chief Risk Officers (CROs) will be coming from the rank of peers within PRMIA.
According to compensation research firm, PayScale, salaries of professionals in US with the PRM Designation are as shown below:
|Years of Experience||Salary|
|1 – 4||US$82,424|
|5 – 9||US$110,000|
More information about the PRM Program can be found at www.prmia.org
At Finance Analytics Group, you will be mentored by a team of tutors who are certified PRMs and have gone through this journey before and are in a better position to lead you.