Professional Risk Manager (PRM)
Reviewed by Aug 27, 2020| Updated on
Meaning of a Professional Risk Manager
It is a title issued by the Professional Risk Managers' International Association. The association awards the designation to the financial risk managers who pass four exams comprising financial instruments and markets, financial theory, quantitative risk evaluation principles, risk management methods and case studies, best practices, behaviour, ethics, and by-laws.
## Importance of a Professional Risk Manager
The curriculum of studies to become a professional risk manager includes the financial philosophy behind risk management, risk assessment, option theory, financial instruments, best practices, history risk management failures, and trading markets.
Professional risk managers can work as business risk managers, business risk analysts, credit risk managers, risk advisory consultants, and more. Groups of businesses that employ skilled risk managers include insurance companies, asset managers, hedge funds, accounting firms, and investment banks.
Professional risk management tests are computer-based, and questions will have multiple choices. Exams can be carried out in any order and should be completed over a period of up to two years. They are offered at four test windows per year, every three weeks. The program recognizes other professional designations and gives partial credit to "crossover" candidates as well as to graduates of selected university programs.
## About The Professional Risk Managers' International Association
It is a non-profit organization that was established in 2002. It is governed by a Board of Directors elected by its global membership and is represented via 46 chapters in major cities worldwide.
## PRM Exams
The PRM exams have recently been updated, and now there are two instead of four exams. If you are a CFA or have been in a PRMIA-accredited university program, you may be able to skip Exam 1.
Tests are 100% multiple-choice questions. Exam 1 contains 60 questions, and Exam 2 has 84 questions. Exam 1 tests candidates on their knowledge of finance theory, tools, markets, and their ability to apply the mathematical basis of risk measurement.