Tuesday, November 25, 2014

PRM Certification

PRMIA (The Professional Risk Managers' International Association) is an international association of people in the industry to risk management (over 90 000 members in over 80 countries). It was founded in 2002 by practitioners who wish to promote ethical principles and transparency in the implementation of financial risk management. PRMIA offers training (online and face to face), and grants the title PRM (Professional Risk Manager) and Associate PRM to those who pass the exams. It is a non-profit organization.

Why get the PRM designation

The designation PRM ™ is an independent certification that attests to your skills and your integrity in the field of risk management, specifically in the field of financial risk. This is one of the most respected names in the field of financial risk and is more common in large financial institutions. More than 2,400 companies around the world hire people who have the title PRM ™.

This title allows you to distinguish you from others in the community and gives you a competitive advantage. This benefit will be valued by your colleagues as much as your customers, as well as employers and educational and research institutions. In the dynamic environment of today, this kind of recognition is an important asset.

How to get certified from the PRMIA association?

Associate PRM

Title Associate PRM covers the basic concepts of risk management. This is training that is mathematically and theoretically simpler than the real title of PRM ™.
For this reason, you must:

  •         Being a member of PRMIA.
  •         Pass one exam (90 multiple choice questions, 3 hours, 60% pass mark). Interestingly, the success of this examination exempts you from examining IV PRM ™.
To get the "real" title PRM ™, you must:
  •         Pass four exams
The prerequisites are *:
  •          Membership in the Association PRMIA
  •        Have a working experience of 2 years for holders of a Bachelor
no experience is required for holders of advanced degrees as a M. Sc. or MBA .

List of examinations to be passed:
These exams can be done in any order within a period of two years. All questions are multiple choice.

The program is primarily based on self-learning made from the The Professional Risk Managers' Handbook guide.

The time course of study required will vary from one person to another, but the Association estimates that it takes about 8 hours of study per week for 3 months (for review). The pass mark is 60% for exams, and the success rate is about 65%.The total costs are around $ 1100 or $ 1200 depending on the choice of material (electronic or paper).

The difference between the FRM and PRM

FRM (Financial Risk Manager) is a certification run by the Global Association of Risk Professionals (GARP). The FRM certification is the "competitor" to PRM designation in the field of risk management. Currently, there is a little known and widespread that the PRM, among others, because he was created a few years earlier (1997 for the FRM, PRM 2002). For cons, the title PRM has experienced strong growth in recent years and is gaining ground against the FRM. 

The subject matter covered by the exams leading to each of the securities is similar to 80%. There is very little difference in content; PRM is generally perceived as being a little bit more applied and a quantitative, while the FRM has a slightly more academic and theoretical trend. Both titles are highly respected in the industry.