Risk Management, PRMIA

Posted by Janet Tritch at 11:13 AM | Comments (0)

June 15, 2010

Call for Speakers - Credit Risk Global Event Series

PRMIA announces a call for speakers for its Global Event Series on Credit Risk. The series will be held throughout the months of Spetember, October and November in 2010.

16 chapters will be holding events throughout the global PRMIA chapter network. These events include morning, afternoon and evening programs. We are seeking high level speakers who can share best practices, effective strategies and current thinking in the field of Risk Management for these chapter events on Credit Risk.

The PRMIA regional chapters that need your support are listed on the speaker application attached. Please mark on the application the box next to the chapter for which you are able to present. Speakers can select as many chapters as they are able to speak. Speakers will be matched with the Regional Director of the chapter(s) they have selected. Regional Directors will coordinate directly with speakers on preferred format, length of speech and other needed arrangements. PRMIA does not pay speaker fees, per diem or honoraria. Please make note on the application of specific speaker restrictions for some chapters.

If you are interested in presenting, please submit your application by June 28th. Applications must be submitted in English. Presentations may be delivered in other languages, depending on the preference of the regional chapter.

Please feel free to forward this opportunity to other potential speakers outside of PRMIA.

The application can be downloaded by clicking here or entering the following link into your internet browser: http://www.prmia.org/Weblogs/General/PRMIA_docs/PRMIA GES Speaker Application_Credit Risk_2010.doc

Please address any questions to Sue.Rod@prmia.org

Posted by Katie M Gittins at 10:13 AM | Comments (0)

June 10, 2010

Risk Certification Awards Announced

PRMIA and Thorek/Scott and Partners today announced the winners of their inaugural risk certification awards. Jan Larsen from the United States was named the winner of the Thorek/Scott Award for PRM Excellence and Richard Jones from the United Kingdom as the winner of the Thorek/Scott Award for Associate PRM Excellence.

These awards recognize those risk managers who believe in certifications as a vital step toward improving industry-wide risk management competence and achieving higher professional standing. Jan Larsen successfully passed the Professional Risk Manager (PRM) exams with the highest score among all exam takers between June 1, 2009 and May 31, 2010 and will receive a $4,000 cash prize. Richard Jones passed the Associate PRM exam with the highest score during this same period and will receive a $1,000 cash prize.

The two winners share their thoughts on the importance of risk certification and education and the benefits the PRM and Associate PRM have brought to them.

"The events of the past few years have served as a stark reminder to all of us of the critical importance of sound risk management practices. It is a great honor to have received the PRM certification and this subsequent recognition, and I hope to use what I have learned to help the financial community to move forward and ultimately emerge stronger than it was," says NERA Economic Consulting Senior Consultant Jan Larsen. "The skills demanded by the PRM Exam will benefit all PRM candidates, their employers and their employers' stakeholders. I am proud to have participated in the program and to be a member of PRMIA."

Richard Jones, Operations Graduate with Standard Life Investments says, "I studied for the Associate PRM in order to gain a broad grounding in risk management and its methodologies. My professional interactions with risk managers at Standard Life Investments have been significantly enhanced since I completed the Associate PRM, as I have a foundation of knowledge to build from, and am familiar with the terminology. The Associate PRM provides an ideal vehicle for financial services professionals who liaise with risk managers on a regular basis, to gain insight into the most widely used risk models, their requirements, and their outputs."

The PRM is recognized worldwide as the leading industry certification for risk managers, having received public endorsements from both business and universities. A PRM assures that the holder has the required broad knowledge and understanding, qualitative and quantitative, that risk managers must bring to the job. The Associate PRM is a PRMIA certificate program intended for staff entering the risk management profession, or those who interface with risk management disciplines on a regular basis, such as auditing, accounting, legal, and systems development personnel who want to understand fundamental risk management methods and practices.

A leader in executive search, Thorek/Scott and Partners has successfully connected top tier organizations with highly qualified professionals for over 30 years. Thorek/Scott's expertise in sourcing top talent risk professionals for the corporate, financial, and banking industries has enabled them to form lasting relationships with leading companies both within Canada and across the globe. Working with clients and candidates to create true partnerships, Thorek/Scott has dedicated themselves to bringing their intelligence, experience and enthusiasm to finding the leadership capital that fits. To learn more about their approach and values, as well as their recent successes and current opportunities, visit them at www.thorekscott.com or contact Catherine Edmunds at cedmunds@thorekscott.com.

Posted by Janet Tritch at 08:53 PM | Comments (0)

June 03, 2010

FICO Survey Indicates Credit Supply Unlikely to Meet Consumer Demand

FICO (NYSE:FICO), the leading provider of analytics and decision management technology, announced the results of a survey conducted on its behalf by PRMIA asking bank risk professionals to predict trends in consumer credit.

Demand for Credit Up, But Lenders Still Cautious
The survey, conducted in March 2010, found that while bankers generally expected consumers to pursue more new credit as well as spend more against their existing credit lines, most lenders are likely to keep a close eye on risk management. Of the 127 bank risk professionals surveyed, 92 percent said they don't expect to see an easing of lending standards in this quarter, 95 percent expected interest rates for consumer credit to stay at current levels or move higher, and 83 percent expected the average credit limit for new credit cards to be lower than in the past.

"Bankers have a growing sense of optimism about the economy, but it's clear that risk management and responsible lending will be top-of-mind as they pursue new customers," said Dr. Andrew Jennings, chief research officer at FICO and head of FICO Labs -- the company's research unit that worked with PRMIA on this survey. "Banks will stay focused on loss prevention. Our survey found most bankers are still concerned about delinquencies. Throw in the CARD Act, which makes it harder for lenders to rein in risky cardholders, and it becomes highly unlikely we'll see lenders throw caution to the wind."

Delinquencies Expected to Increase
When asked about expected delinquency rates for several types of consumer credit, the majority of bankers said they expected delinquencies to increase. This includes home mortgages (60 percent of respondents expected a rise in delinquencies), credit cards (59 percent), and home equity lines of credit (56 percent). Even when asked about small business loans, 63 percent of lenders expected to see an increase in delinquencies.

Risk Management Becoming a Higher Priority in Banks
In a particularly telling result, 66 percent of bankers expected their institutions to increase the priority placed on risk management. Meanwhile, 34 percent expected the priority given to risk management to remain at its current level, and not a single respondent expected risk management to become a lower priority.

"Risk management hasn't always been treated strategically, but that's starting to change in a significant way," said Dr. Russell Walker of the Zell Center for Risk Research at Northwestern University's Kellogg School of Management. Walker is a PRMIA member and analyzed the survey results. "Financial institutions have come to realize how vulnerable their businesses are to macro-economic forces and I expect to see much more emphasis placed on proactive, systematic risk management and loss prevention than we've seen in the past."

Risk Managers Almost Universally Pessimistic about Impact of CARD Act
While the recently implemented CARD Act was designed to protect credit cardholders from objectionable lending practices, the survey found it is likely to contribute to the gap between credit supply and credit demand. Of those survey respondents who work in the credit card industry, over 85 percent expected the CARD Act to result in higher interest rates for consumers and lower credit limits for new accounts. These respondents also expected the law to result in similar or lower acceptance rates for credit applications, indicating that tougher regulations and the ongoing struggle by credit card issuers to regain profitability will keep credit tight.

A detailed report of the survey results is available at http://www.prmia.org/PRMIA-News/USConsumerCreditRisk.pdf. FICO and PRMIA extend special appreciation to The Zell Center for Risk Research at The Kellogg School of Management for its assistance in analyzing the survey responses and writing the report. FICO intends to replicate this survey quarterly.

About the Zell Center for Risk Research
The Zell Center for Risk Research promotes the study and understanding of the way people perceive risk, the effects of these perceptions, and the management of risk. The center accomplishes these objectives by encouraging academic research in this area, and through the communication of research findings to a wide audience of academics, students and practitioners. The center is housed within the Kellogg School of Management at Northwestern University, a widely-recognized global leader in management education. The school, located just outside of Chicago, is home to a renowned, research-based faculty and MBA students from around the globe. To learn more, visit www.kellogg.northwestern.edu.

About FICO
FICO (NYSE:FICO)-transforms business by making every decision count. FICO's Decision Management solutions combine trusted advice, world-class analytics and innovative applications to give organizations the power to automate, improve and connect decisions across their business. Clients in 80 countries work with FICO to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of individuals manage their credit health through the www.myFICO.com website. Learn more about FICO at www.fico.com.

Posted by Janet Tritch at 05:05 PM | Comments (0)

May 19, 2010

Global Event Series on Liquidity Risk - Webinar Now Available to all PRMIA Members

The PRMIA Global Event Series webinar on Liquidity Risk is now available for viewing by all PRMIA members. The recorded webinar features Colin Lawrence and David Benson, who share their observations and answer member questions on liquidity risk in this 45-minute webinar. Colin Lawrence is Director of the Prudential Risk Division of the Financial Services Authority, the independent body with statutory powers to regulate the UK's financial services industry, and a PRMIA board member. David Benson is Executive Vice President and Head of Capital Markets of the Federal National Mortgage Association, better known as Fannie Mae. The webinar is moderated by Steve Lindo, PRMIA's Executive Director.

The webinar can be accessed by clicking the link below:

https://www2.gotomeeting.com/register/800356203

PRMIA would like to thank our webinar sponsor Moody's Analytics (www.moodysanalytics.com)

Posted by Katie M Gittins at 06:16 AM | Comments (0)

May 12, 2010

First Chinese-language sittings of PRMIA's international financial risk management examinations

The Professional Risk Managers' International Association (PRMIA) and PRMIA's partner in China, Beijing Prming Education Counseling Corporation (PECC - www.prmiachina.org.cn) announce that on April 24th the first sittings of PRMIA's international risk management examinations were run in Chinese. Chinese students now have the advantage of taking internationally respected qualifications covering all aspects of financial risk management and being able to both study for and sit the examinations in the Chinese language. In this way PRMIA and PECC contribute to the development of risk management standards both in China and the rest of the world.

The qualifications consist of PRMIA's advanced PRM (Professional Risk Manager) designation, and the Chinese Risk Management Certificate, comprising PRMIA's Associate PRM certificate and an especially developed second examination consisting of a China-specific risk management syllabus. All syllabus material is available in Chinese. PRMIA's exams are identical both in English and in Chinese.
The first sitting of these examinations was held at the Chinese Academy of Social Sciences in Beijing, and PRMIA members from a variety of Chinese organisations - financial institutions, universities and training companies - took the Chinese Risk Examination.

"It's wonderful that PRMIA has set up two exams for the Chinese Associate PRM in Greater China which involved the Chinese risk management practices. Regarding the features and achievements of "a road with Chinese characteristics", the development path of China's financial industry gradually formed its different market environment, innovation environment and regulatory requirements. So it is necessary for China's financial industry to develop the standard of risk management based on realistic local demands. From this perspective, I believe that, by combining international risk knowledge and Chinese risk practice together, PRMIA therefore will have set the higher standard of risk management in China. PRMIA and PRMIA China Center are doing very significant work to achieve these challenges."

- Dr. Wang Li, Executive Director of the TEHUA Post-Doctoral Research Station

As would be expected, all were determined to prove their skills, and there was a high pass rate of the two examinations of 78%. Candidates passing both examinations will receive a certificate of Chinese Risk Management prowess as well as PRMIA's Associate PRM certificate.

"How to train more qualified risk management talent for banks is one aspect of my work. Besides banks organize trainings for their staff, we also like to see more independent third party professional institutions appearing on the market, and help personnel working in related fields to improve their professional skills. This is why I came to sit the examination: in terms of exam book, teaching arrangements, quality of exam questions, the effect fully satisfied my objectives."

- Dang Junzhang, General Manager, Risk Management Department, Postal Saving Bank of China

To satisfy local cultural preferences, the exams are being taken at fixed times each month in centres across China with frequency and venues increasing as the examination registrations require. Next to be taken will be repeats of the above certificate plus the first of the PRM designation examinations.

"Jilin's financial institutions currently have attached great importance to risk management as never before. This is a good thing and it deserves consideration of our trainees', who hope to improve their professional abilities and employment competitiveness. Taking this exam makes me conclude that a good certificate and standards require three conditions: 1. the knowledge system is complete, and point of view is neutral and unbiased; 2. certification developers have profound practical experience, so that people who obtain the certificate can apply their knowledge to practice; 3. follow-up education and mechanisms to encourage information exchange are provided. PRMIA and PECC have achieved this goal."

- Zhao Bingshen, Senior Trainer of Jilin L&H Financial Consulting Co., Ltd

For more information on the exams in China, please contact Ms. Alloy Lara, Chief Executive Officer of PECC (contact details below) or PRMIA's Greater China Education Director in Beijing, Mr. Guo Jun on guo.jun@prmia.org or +86 13 1202 78568.

PECC is an affiliated company of the TEHUA Finance & Economic Research Institute (FERI) and was set up for the execution of this exam and training programme and benefits from the facilities FERI and its sister company, the TEHUA Post-Doctoral Research Station, and other Chinese academic institutions. Through this support, PECC benefits from training and testing centres in more than 40 Chinese cities and a finance faculty of 30 which is currently educating 4,500 finance students and professionals a year in China.

PRMIA is a non-profit, member-led association of professionals, dedicated to advancing the standards of the profession worldwide through the exchange of ideas, professional standards and education. Formed in 2002, PRMIA now has more than 68,000 members from 198 countries and operates over 60 local chapters around the world. PRMIA offers a higher standard for risk professionals and works with universities and training organizations to provide educational resources from the cradle to the pinnacle of risk professionals' careers. PRMIA has recently established chapters in Beijing and Shanghai. More information can be found at www.prmia.org.

For a version of this announcement in Chinese, click here.

Posted by Janet Tritch at 10:25 AM | Comments (0)

Support for Systemic Data Collection Revealed in Survey of Financial Risk Experts

The results of a recent survey of financial risk management experts by PRMIA and the CE-NIF (Committee to Establish the National Institute of Finance) established that there is a strong consensus that not enough has been done to collect and analyze system-wide financial data. The risk experts who participated in the survey also broadly agree that future efforts to standardize and aggregate this type of system-wide data would significantly improve systemic risk management. The creation of an Office of Financial Research, which will be tasked with aggregating and analyzing system-wide financial data is one of the provisions in the regulatory reform legislation currently being debated in the U.S. Senate.

"Senior risk managers have been voicing their concerns about untreated financial systemic risk for many months," said Steve Lindo, Executive Director of PRMIA. "It was one of the top risk management concerns identified at PRMIA's Chief Risk Officer (CRO) Summit held in New York last November and the central theme of a PRMIA roundtable for CRO's held in London on April 16. With regards to managing system-wide risk, the financial sector is behind other industry sectors which have already established systemic risk management initiatives, such as the aviation industry's ASIAS program which, through sharing of data without compromising privacy or confidentiality, brings visibility to risks which may be common among multiple players, allows appropriate safety triggers to be designed and then monitored to check that they are working."

"The recent financial crisis spotlighted significant weaknesses in the capabilities of regulators. In response, the Committee to Establish the National Institute of Finance (CE-NIF) has been working to equip financial regulators and policy-makers with much better detailed data and the improved analytical capacities that are needed to understand and respond to future threats to financial stability. We are greatly encouraged by the broad and strong support for this effort on the part of financial risk management executives as revealed by the PRMIA survey. This confirms the view that the most senior risk managers charged with the risk management of their own institutions and concerned about systemic risk support the responsibilities assigned to the Office of Financial Research and recognize the value of its creation," commented Dr. Allan Mendelowitz, former Chairman of the Federal Housing Finance Board and GAO Managing Director, speaking on behalf of the CE-NIF.

Survey Highlights

Survey Background
The survey was conducted between 23 March and 9 April, 2010. A total of 98 risk management experts participated, drawn from PRMIA's C-Suite network of Chief Risk Officers and their direct reports located in the USA.

PRMIA is a non-profit, member-led association with more than 60 chapters around the world and over 68,000 members from 198 countries. PRMIA is dedicated to defining and implementing the best practices of risk management through education, events, networking and online resources. PRMIA offers its members two levels of risk management certification - the Professional Risk Manager (PRM) designation and Associate PRM certificate. More information can be found at www.prmia.org.

The Committee for the Establishment of a National Institute of Finance is a non-partisan, volunteer group formed by current and former financial executives, practitioners and academics, which includes 6 Nobel Economics Laureates. More information is available at www.ce-nif.org

Additional information about the survey including detailed survey results is available by contacting surveys@prmia.org

Posted by Janet Tritch at 08:47 AM | Comments (0)

April 16, 2010

PRMIA Updates ePRM Coach Online Training and Diagnostic Exams to Reflect Syllabus Changes

PRMIA has updated the ePRM Coach online training and ePRM Diagnostic Exams to reflect the October 2009 syllabus changes to Exams III and IV. Current license holders will have automatic access to these new versions.

ePRM Coach is a comprehensive self-study guide for the PRM Certification Exam. Designed in accordance with the PRM exam structure, the ePRM Coach covers all subject areas and is consistent with the requirements of PRMIA standards. The courses and diagnostic exams have been designed for all risk professionals who want to assess and develop their skills.

To purchase either ePRM Coach online training or ePRM Diagnostic Exams, click here.

Posted by Janet Tritch at 11:36 AM | Comments (0)

April 14, 2010

PRMIA Awards Risk Management Accreditation to University College Dublin, Smurfit School of Business Program

PRMIA today announced that it has awarded Risk Management Accreditation to the MSc in Quantitative Finance Program at University College Dublin, Smurfit School of Business in Dublin.

The accreditation program is designed to identify and endorse university degree programs that prepare candidates for careers as professional risk managers. Students completing appropriate courses within accredited degree programs will be eligible for exemption from PRMIA's Professional Risk Manager (PRM) Exams I and II, which form a major part of the PRM certification program, the global standard for the world's top financial risk professionals. All students will still be required to pass Exams III and IV in the PRM program.

The MSc in Quantitative Finance is a balanced programme of finance and computational methods that gives students the knowledge and skills to develop quantitative security pricing models and trading strategies for managing portfolios of equity, fixed income and derivative securities and for managing corporate financial risk. The program will prepare students for a specialist career in the finance industry in functions like funds management, investment banking, financial engineering and corporate treasury management.

"We are delighted to have the MSc in Quantitative Finance at University College Dublin (UCD) accredited by PRMIA and that it is recognised as being sufficiently rigorous to gain exemption from PRM Exams I and II," says Professor John Cotter (UCD School of Business and Steering Committee Member of Dublin Chapter of PRMIA). "Our degree, which is a leading program in risk management, will continue to grow domestically and internationally as a result of the success in gaining accreditation. In addition, we see the development of executive education in the area of risk management through our PRMIA partnership as a vital step in the training of current and future risk managers. We expect both these developments will underpin the growing importance of risk management, and also the activities of the Dublin PRMIA chapter."

University College Dublin is also PRMIA's newest University Partner. In conjunction with its leading Academic Partners (including both University Partners and Academic Associates), PRMIA seeks to set the international standards for graduate level education in risk management and financial engineering, to offer training and development programs in finance and risk management worldwide, and to reinvest the proceeds of these activities into further educational efforts, scholarly research, and scholarships.

Posted by Janet Tritch at 11:48 AM | Comments (0)

March 25, 2010

Chinese Exams Now Open for Registration

The Chinese PRM and Associate PRM are now taking registrations at www.prmiachina.org.cn and the first registrations for the opening day of the exams, April 24th, have now been received.

Posted by Janet Tritch at 08:24 AM | Comments (0)

March 15, 2010

Associate PRM Books Now Available in Chinese

The two supporting books of the Associate PRM exam - (i) the Essentials of Risk Management and (ii) the Chinese Risk Management Practices, are now available at financial book shops in China.

For further information on the Chinese Associate PRM, please go to www.prmiachina.org.cn or contact guo.jun@prmia.org or alloy.lara@gmail.com.

We expect the books to be available on Chinese online booksellers' websites soon and will inform members when this happens.

Posted by Janet Tritch at 09:41 AM | Comments (0)

February 12, 2010

PRMIA Partner Events Offer Registration Discounts to PRMIA Members

PRMIA members will receive discounted registration rates when registering for the upcoming Investment Symposium, taking place March 22 - 23 in New York, and the ERM Symposium, taking place April 12 - 14 in Chicago.

The Investment Symposium will address many of the current economic issues and provide the latest updates from insurance industry's perspective. The program will cover Asset Classes, Finance and Investment Risk Management and Investment Strategy. The speakers have roles in various backgrounds: investment process, portfolio managers, traders, actuaries, investment professionals, derivatives and capital markets experts.

The ERM Symposium will focus on ERM lessons learned during the recent financial crisis and illustrate why a strong ERM program is essential before, during and after each relative cycle of results - both good and bad. By bringing together ERM knowledge from a variety of industries, the ERM Symposium aims to build a strong cross-disciplinary framework for senior management to create systematic value and competitive advantage through effective managing of risk and capital.

PRMIA volunteer leaders are among those speaking at both events.

Posted by Janet Tritch at 02:30 PM | Comments (0)

February 08, 2010

PRMIA and Thorek/Scott and Partners Announce Awards Which Advance the Professionalism of Risk Management

PRMIA and Thorek/Scott, responding to public concerns over insufficient rigor in risk management practices, have joined forces to promote industry-leading risk management education. This initiative will boost the efforts of high-performing risk professionals and forward-thinking organizations, who regard risk management professionalism as essential to their own success and certification achieved through formal risk education as the most effective route to its implementation.

To recognize those risk managers who achieve higher professional standing in the industry through education and certification, the Professional Risk Managers' International Association (PRMIA) has joined forces with Thorek/Scott and Partners, a leading executive search firm, to offer the Thorek/Scott Award for PRM Excellence and the Thorek/Scott Award for Associate PRM Excellence. These awards will recognize the two candidates who successfully pass the Professional Risk Manager (PRM) and Associate PRM exams with the highest scores between June 1, 2009 and May 31, 2010. The PRM Award winner will receive a $4,000 cash prize, with the Associate PRM award winner receiving a $1,000 cash prize. The winners will be announced in June 2010. Detailed award terms and conditions are available by contacting support@prmia.org.

David Millar, PRMIA Chief Operating Officer says, "The key to the future of financial risk management is the attainment of professional status. Taking exams is the first step towards this, and these awards recognize those individuals who have committed to the improvement of the industry and the safeguarding of the finance sector."

Michael Thorek, President, Thorek/Scott and Partners, adds, "Our many years of working with those in risk has emphasized the value of risk and risk education and we are proud to support PRMIA for developing its extensive risk education program."

The PRM is recognized worldwide as the leading industry certification for risk managers, having received public endorsements from both business and universities. A PRM assures that the holder has the required broad knowledge and understanding, qualitative and quantitative, that risk managers must bring to the job. The Associate PRM is a PRMIA certificate program intended for staff entering the risk management profession, or those who interface with risk management disciplines on a regular basis, such as auditing, accounting, legal, and systems development personnel who want to understand fundamental risk management methods and practices.

The Professional Risk Managers' International Association (PRMIA) promotes a higher standard for risk professionals, with more than 60 chapters around the world and over 65,000 members from 195 countries. A non-profit, member-led association, PRMIA is dedicated to defining and implementing the best practices of risk management through education, certification, events, networking, and online resources. More information can be found at www.prmia.org.

A leader in executive search, Thorek/Scott and Partners has successfully connected top tier organizations with highly qualified professionals for over 30 years. Thorek/Scott's expertise in sourcing top talent risk professionals for the corporate, financial, and banking industries has enabled us to form lasting relationships with leading companies both within Canada and across the globe. We work with clients and candidates to create true partnerships, dedicating ourselves to bringing our intelligence, experience and enthusiasm to finding the leadership capital that fits. At Thorek/Scott we are committed to helping both our clients and candidates succeed. Visit us at www.thorekscott.com to learn more about our approach and values, as well as our recent successes and current opportunities.

Posted by Janet Tritch at 05:54 PM | Comments (0)