What is the PRM™ Designation?
The Professional Risk Manager (PRM™) Designation is a globally recognized, graduate-level risk management credential. Today's Risk Professionals are expected to know and understand industry best practices and be committed to using them. There is no better way for risk managers to show their commitment than by proving that they have the knowledge, skills, and qualifications to back their experience.
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 the global standard for risk management professionals.
Built by a broad coalition of industry leaders to reflect the mission objectives of the association and to establish the leading form of education, validation and certification in the Risk Management profession, the PRM counts candidates from over 100 countries, more than any other risk certification program, anywhere.
The learning objectives for the PRM designation are 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
- lessons learned from failed systems and practices and major risk events
- best practices of governance, conduct and ethics
Looking for a less intensive program with exams focused on specific risk management topics? PRMIA’s Certificate Programs are designed to give you just that and are validated by passing a single exam. For more information please visit PRMIA’s Certificate Programs.
What Do Past Candidates Say About the PRM?
Read PRM testimonials to learn what PRM Certified Professionals from around the world have gained from pursuing the PRM designation.
Who holds the PRM?
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 is comprised of 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.
PRMIA's Certifications Public Directory - access a list of PRM Certified Professionals from 2016 onward.
What Does Having PRM After My Name Do For Me?
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 CROs will be coming from the rank of peers within PRMIA.
Why Should I Choose the PRM Over Other Credentials?
There are only a few credentials in the risk profession that are recognized as industry leading, and the PRM is rated highest. The reason is that our program is so well regarded is that the PRM encompasses both highly advanced academics and practical business application. Employers know that the skills of the PRM™ Certified Professional are robust and essential to their business, and they respect the added effort that goes into the PRM™ over other credentials. PRM Certified Professionals stand out in a stack of resumes.
According to a recent PRMIA member survey, a majority of respondents indicated that having an industry designation is imperative to the hiring of a risk management professional or the management of a professional career. Respondents indicated that the PRM has been most beneficial to them by increasing their knowledge and helping in their career. Others indicated that increased salary, personal satisfaction, and respect are also benefits.
The PRM Candidate of the Year award program annually recognizes top PRM candidates from around the world. There are two awards given, including the prestigious PRM Candidate of the Year Award and the PRM Focus Award.
The Professional Risk Manager Program has been designed for those:
- seeking professional certification
- looking to develop their skills or those of their staff
- looking for skills assessment of current employees
- looking for skills assessment of potential employees
- looking to communicate their knowledge and understanding of risk management at a higher level to external and internal parties
The subject matter for the PRM Program has been chosen based on relevance as well as the ready availability of literature on the specific subjects.
Specifically, the program has been designed with four of our mission objectives in mind:
To be a Leader of Industry Opinion and a Proponent for the Risk Management Profession
By setting the higher standard in risk certification, we create standards of practice and accountability that will define what Professional Risk Managers represent to their colleagues and employers.
To Drive the Integration of Practice and Theory
Neither theory nor practice will successfully develop to their potential without a strong interaction between professionals in each area. The Professional Risk Manager Program contains subject matter drawn from risk management theory, finance theory, the math underpinning risk measurement and applied question matter from the practices of our profession. We will directly test for knowledge of Finance and basic Math. Such knowledge is essential for risk managers as it forms the foundation of risk measurement and management.
We will also test for practical knowledge about markets: trading practices, intermediaries, settlement and other conventions in specific markets. These market choices will reflect the most global of markets as well as some more narrowly defined markets, with the latter giving us the opportunity to expose people to markets in which they may not normally be active.
Finally, to test for broad understanding of important risk management lessons, we have included a section based on the time-tested case-study approach to learning. Narratives of historical incidents where critical risk management issues have arisen give us the opportunity to conduct a sort of pathology of events from around the globe and to test members’ understanding of their root causes.
To be Global in our Focus, Promoting Cross-Cultural Ethical Standards, Serving Emerging as well as More Developed Markets
The content of the PRM Program is designed to be geographically neutral. Specific sections focusing on “markets” are designed so that a variety of markets and market lessons will be studied.
The PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) represents the standards of behavior that Professional Risk Managers promise to their colleagues and employers. It has been written to cut across geographic and cultural boundaries. All Professional Risk Managers will be required to study the Code for the program and adhere to it to stay in good standing as a certified PRM Certified Professional.
The PRMIA Governance Principles delineate seven key principles to best practice corporate governance, all gleaned from governance documents developed by leading public and private entities from around the world.
Transparent, NonProfit, Independent, Member-Focused and Member-Driven
PRMIA is a non-profit professional association under the full control of its members. It does not have for-profit subsidiaries that may financially benefit individuals. Its bylaws provide strong protection for member rights and the assets of the membership. We are “of the risk professional, by the risk professional and for the risk professional.”
The program has been designed by industry leaders, all PRMIA members. Any PRMIA member can submit questions for possible inclusion on the exams. Those submissions go through a quality control screening by a number of members of the Education Committee and, if approved, will make it to our exam question database. By emphasizing peer input and peer review, this approach sets a standard of measurement created by the industry.
Candidates will study the Bylaws of PRMIA, so that they are familiar with our structure and codification of member-leadership.