"The application of risk management to hedge funds is a necessary component of any successful hedge fund program. The breadth and dynamism of investment styles that fall within the scope of the hedge fund investment industry require a sound grounding not only in the basic principles of risk management, but also, how those principles apply to the sometimes strange, but fascinating, world of hedge funds,” said Mark Anson, Ph.D, CFA, CAIA, CPA, JD, who is the CEO of Hermes Pensions Management and CEO of the British Telecomm Pension Scheme and a member of the committee that developed this exam. “Considerable time and effort was put into the selection of reading materials and exam questions to ensure a thorough grounding in understanding how hedge funds work."
The exam development committee includes a mix of leading practitioners and academicians, all widely published:
Mark Anson, Ph.D, CFA, CAIA, CPA, JD, CEO of Hermes Pensions Management and CEO of the British Telecomm Pension Scheme
Keith H. Black, CFA, CAIA, Illinois Institute of Technology
Francois-Serge Lhabitant, PhD, Chief Investment Officer, Kedge Capital, Professor of Finance, HEC Lausanne and EDHEC
Prof. Luis Seco, University of Toronto and President, Sigma Analysis and Management
Ms. Hilary Till, Principal, Premia Capital Management, LLC, Research Associate, EDHEC Risk and Asset Management Research Centre
Kathryn Wilkens, Ph.D., CAIA, Chartered Alternative Investment Analyst Association, Director of Curriculum
David R. Koenig, Executive Director and Past Chair, Board of Directors, PRMIA
The exam will first be offered in January of 2007 through the 4,000 testing centers worldwide where the PRM exams are administered. Registrations will be taken beginning in December of 2006 via the PRMIA website at www.prmia.org. A fact sheet about the exam can be downloaded here.
“In this day and age, when alternative investments have surpassed the one trillion dollar mark and are becoming mainstream, PRMIA is showing their traditional leadership offering a focal certification on the alternative investment space, from hedge funds to futures and commodities trading,” said Prof. Luis Seco, University of Toronto and President, Sigma Analysis and Management. “This will be an invaluable addition to help promote healthy risk management practices in this sector.”
This exam furthers the development of the risk profession as applied to hedge funds. The significant and valuable work of the Chartered Alternative Investment Analysts (CAIA) will be recognized with partial exemption from sections of the PRM Hedge Fund Risk Management Specialization Exam.
Questions for the exam database have been developed by industry participants from around the world. Contributions have been made by several individuals, including:
Rian Akey, COO, Cole Partners / Cole Asset Management
Marcel Beutler, PhD, Risk Management, RMF Investment Management
Keith H. Black, CFA, CAIA, Illinois Institute of Technology
Ashish Dev, Executive Vice President, KeyCorp
Armelle Guizot, Independent Author, Writer, Operational and Compliance Risk Management Consultant
Galina Kalcheva, CFA, Director, UBS Global Asset Management
Dr Guan-Seng Khoo, Head, Innovation Unit, Singapore Exchange
Pierre-Yves Moix, Chief Risk Officer, RMF Investments
Nawal Roy, Vice President, Moody's Investor Services
Rick Seefeldt, Investment Analyst, Man Investments/Man Global Strategies
Florian Stärk, Head of Risk Management, MEAG Asset Management GmbH
Dr. Michael Thiergen, PRM, Senior Portfolio Manager, Global Risk Management & Alternative Investments HVB Markets & Investment Banking Bayerische Hypo- und Vereinsbank AG Munich Germany
Kathryn Wilkens, Ph.D., CAIA, Chartered Alternative Investment Analyst Association, Director of Curriculum
"The increasing impact of Hedge Fund activities on the financial markets is remarkable.
Understanding the complex nature of the Hedge Fund business and assessing the risks involved is a must for any committed market participant, said Dr. Michael Thiergen, PRM, Senior Portfolio Manager, Global Risk Management & Alternative Investments HVB Markets & Investment Banking Bayerische Hypo- und Vereinsbank AG. “The PRM Hedge Fund Risk Management Specialization exam is perfectly suited to attain this goal."
Information is available by clicking here and by contacting PRMIA at certification@prmia.org.
About PRMIA and the PRM
PRMIA is the Professional Risk Managers’ International Association. A nonprofit formed in January of 2002, PRMIA is a higher standard for risk professionals with more than 60 chapters around the world and over 36,000 members from more than 170 countries. A non-profit, member-led association of professionals, PRMIA is dedicated to advancing the standards of the profession worldwide through the free exchange of ideas. PRMIA offers the only globally endorsed Professional Risk Manager (PRM) certification program, pursued by over 1,700 active candidates from more than 85 countries, more than any other risk certification program. The PRM is the higher standard in risk certification. More information can be found at www.PRMIA.org.
