The Professional Risk Manager Program
Updated Oct 2009
Sponsored by the Professional Risk Managers' International Association, the PRM program is designed for risk professionals or those looking to enhance their knowledge base within risk management.
The examination is offered on a continuous basis from May onwards on each business day and the format is either a 6 hour multiple choice exam or 4 separate 1-2 hour examinations. The 4 exams are broken down into:
Duration: 4 Exams (can be taken any day of the year)
Exam I: Finance Theory, Financial Instruments and Markets (120 minutes)
Exam II: Mathematical Foundations of Risk Measurement (120 minutes)
Exam III: Risk Management Practices (90 minutes)
Exam IV: Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws (60 minutes)
Although more numerically focused than the FRM examination, the PRMIA and FRM are often compared as being the 2 definitive risk management designations in the industry.
The PRMIA was only established several years ago, a few years after the FRM designation took a foothold, but that has not stopped PRMIA from expanding strongly over the recent period, and we believe that the PRMIA and FRM will continue to expand parallel to each other.
Something to consider at the moment is that if you have taken the Acturial, CFA or the FRM examination, you are exempt from taking all the PRMIA examinations, and costs are substantially lower than undertaking the full program; as seen from the following
Any One Exam: US$195
Full Program: US$500
And exemptions for particular designations are as follows:
Complete Professional Risk Manager Exam: (6 hours, including one hour break)
CFA Charter Holders: Exams III and IV
CIIA, CEFA Charter Holders: Exams III and IV
CQF Holders: Exams III and IV
Actuarial Fellows: Exams III and IV
Actuarial Associates: Exams I, III and IV
CSI Financial Risk Management Graduates: Exams, II, III and IV
CAIA Financial Risk Management Graduates: Exams, II, III and IV
Global Derivatives Viewpoint
It is difficult to say whether the FRM or the PRMIA is a 'better' designation, but the PRMIA's structure of 4 distinct sections is our preference as we feel that will provide a sound learning path for candidates and cover a wide range of topics pertinent to today's markets.
- Note: All data and factual information was taken from the PRMIA website and PRMIA does not endorse nor contribute to this webpage