Enterprise Risk Management Programs 2016-17

Over time, there has been a surge in demand for risk managers due to increasing complications of financial and other functional undertakings. These are professionals who identify and analyze risks facing the firm and come up with mitigation measures against such risks. This demand has increased with standards-setting examinations which in turn have led to many organizations in the risk management industry competing to furnish interested candidates with a standard certification.

For instance, the Global Association of Risk Professionals and the Professional Risk Managers’ International Association offer Financial Risk Manager (FRM) exam and the Professional Risk Manager certification (PRM). These tests take not less than 500 hours of study but unfortunately only 50% or less of those who attempt them actually succeed. The GARP exam is a two part task that costs $1250 and the four part PRMs’ test goes for $ 500.

The Risk and Insurance Management Society (RIMS) and the Society of Actuaries also provide risk management certifications. However, these are less bent towards financial risk compared to FRM and PRM. They are inclined towards risk management with an enterprise wide view. For instance, the RIMS Fellow, the Chartered Enterprise Risk Analyst (CERA), the Certified Risk Manager and the Associate in Risk Management. These mainly span all the risk issues relating to companies.

An individual who has been previously exposed to risk management can take a few months of study to earn some of these titles as opposed to beginners who are at it for more than a year. This requires one to be adept in financial markets, mathematical principles relating to risk management, up-to date risks like market and credit risks and risk management measures, behavioral ethics and organizational governance.

This certification is not a compulsory prerequisite to practice risk management but people take up the exams because they come with a host of benefits. Certification equips with invaluable concepts and skills that enable you to effectively perform a better job. It’s also a living proof to dubious potential clients and new businesses. In the event that you are looking for employment, this certification gives you a competitive edge over other interviewees.

The CERA is a rigorous and highly recommended credential for people who have a keen interest in risk management. It is a development of the Society of Actuaries (SOA) credential and seeks not only a detailed understanding of risk but also implementation of proven risk management strategies with an enterprise-wide view.

An enterprise risk management qualification, e.g. CERA enables the candidates to gain a broader understanding of risk that is more extensive than the classical actuarial areas. This allows them to help companies to strategically manage risks and improve their competitive advantage. This global ERM qualification is widely recognized by 13 actuarial associations in 12 countries in the whole wide world. However, achieving this qualification is never a leisure walk in the park. It’s quite a daunting task.

This certification makes actuaries proficient to practice as chief risk officers in various spheres such as insurance, reinsurance, consulting, energy, infrastructure, transport, media, technology, healthcare and manufacturing. Besides, one can also work as a business manager, a financial professional, a risk professional, senior analyst, risk reporting manager, casualty actuary, risk leader, etc. Clearly, the possibilities are endless.

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