PRM – Professional Risk Manager

Need of higher skills and Professionalism in the field of Risk Management PRMIA (Professional Risk Manager International Association) organizes most comprehensive, the practical skills-oriented exam which is known as Professional Risk Manager. It is popularly known as PRM. PRM designation is a globally recognized certification for risk managers and those who are related to risk management. This designation is highly recognized and respected in the world of Risk Management. After completing your PRM certification, you can officially carry Professional Risk Manager title.

Why Professional Risk Manager (PRM) online training course?

As the designation deals with Risk Management, if this area attracts you and moreover if you want to explore your career in Finance world like in Banks, Asset Management Companies, Hedge funds, Trading, structuring etc. then PRM is right door for you.

About PRM Exams:

It is designed as a self-study program. It consists of four PRM exams which can be taken individually or all at once.

• EXAM I: Finance Theory, Financial Instruments, and Markets
• EXAM II: Mathematical Foundations of Risk Measurement
• EXAM III: Risk Management Practices
• EXAM IV: Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws

Candidate should pass all four PRM exam to receive this designation. Candidate should have minimum experience which is:

• 4 Years, if he doesn’t hold a bachelor degree
• And 2 Years if he holds a bachelor degree
• If the candidate is MBA, MSF, MQF, CFA, CAIA, CQF etc. there is no experience required.

Exemptions for PRM Exam:

There are Exemptions for cross overqualified candidates. The PRM program identifies CFA charter holders and Associate PRM certificate holders and gives the partial credit towards completion of Professional Risk Manager designation.

University graduates who hold appropriate degrees like CFA, CIIA, CEFA, CAIA etc. need not write Exam I and II. They can directly appear for Exam III and IV.

Fees & Registration structure for PRM exam

For taking a PRM Exam you:

1. Have to become a PRM Member

2. Have to purchase a PRM exam voucher

3. And Register with Pearson Vue (testing provider)

PRM Exam Fees Structure: 

Membership	Application Fee MEMBERS	Program Fee MEMBERS
Contributing Member	US $150	US $1180
Affiliate/Non Member	US $150	US $1280

PRM Exam Dates:

From January 2018:

Scheduling Window	Testing Window
September 13 – December 23, 2016	September 13 – December 23, 2016
January 1 – March 17, 2017	February 20 – March 17, 2017
March 18 – June 16, 2017	May 22 – June 16, 2017
June 17 – September 8, 2017	August 14 – September 8, 2017
September 9 – December 22, 2017	November 20 – December 22, 2017
January 1 – March 16, 2018	February 19 – March 16, 2018
February 19 – March 16, 2018	May 28 – June 22, 2018
June 23 – September 14, 2018	August 20 – September 14, 2018
August 20 – September 14, 2018	November 19 – December 21, 2018

On-demand exams won’t be available. They will be offered at fixed intervals throughout the year.

The candidate might sit for the same exam once every 90 days.

PRM Exam Format

The PRM Level I exam is a multiple-choice exam. There are total 36 questions to be answered in 2 hours’ time.

The Level I exam of PRM is of 2 hours and there are total 36 questions. And all the questions are Multiple-Choice Questions (MCQ’s). The questions are selected randomly from the syllabus as per weightage requirement. It is offered only in English language and requires minimum 60% to pass. It is an online exam and conducted over more than 5000 centers in over 165 countries.

Syllabus of PRM Exam I (PRM):

FINANCE THEORY:

You will study the Risk and its aversion, CAPM, Basics of capital structure, Valuation of forwarding contracts and Options Pricing. It carries 36% weightage.

FINANCIAL INSTRUMENTS:

Here you are required to have DESCRIPTIVE AND PRICING KNOWLEDGE of the various financial instruments like Bonds, Futures and forwards, Swaps, Credit Derivatives etc. It carries 36% weightage.

MARKETS:

It will test the financial structure of the markets. Knowledge of Money, Bond, Forex, Stock, Futures, Commodities, and Energy Markets. It carries 28% weightage.

The format of PRM Exam II

This exam is an online exam with Multiple Choice Questions. The total number of questions in Exam II is 24 for which you will get 2 hours’ time. And you need to be 60% correct.

Syllabus for PRM Exam II:

FOUNDATIONS:

It deals with the mathematical symbols, rules, sequences, series, Exponents and Logarithmic concepts, various Functions and graphs. It carries 4% weightage.

DESCRIPTIVE STATISTICS:

It includes the Moments of a Distribution, Bivariate Data, Measures of Dispersion. It carries 4% weightage.

CALCULUS:

There are Differential Calculus, Integral Calculus, applications of Second Derivatives, optimization etc. It carries 21% weightage.

LINEAR MATHEMATICS AND MATRIX ALGEBRA

It will test for Matrix algebra, its applications, and Quadratic forms. It carries 21% weightage.

PROBABILITY THEORY IN FINANCE

Its definitions and rules, Distribution concepts. It carries 25% weightage.

REGRESSION ANALYSIS IN FINANCE

You have to learn about Simple, Multiple Linear Regression. Hypothesis testing, Maximum Likelihood estimation. It carries 13% weightage.

NUMERICAL METHODS

It includes numerical methods for valuing options, solving equations etc. It carries 8% weightage.

Exam III Format

Again this is an online exam, with Total 36 exam questions and all are Multiple Choice Questions. The time duration is 1.5 hours and you need to be 60% correct.

Syllabus of PRM Exam III:

MARKET RISK

How to manage Market Risk with Value-at-Risk Models, Stress testing, Capital Allocation and Risk Adjusted Performance, Liquidity Risk. It carries 33.33% weightage.

CREDIT RISK

Management of Credit Risk, Portfolio Models of Credit Risk, Credit Exposure. It carries 33.33% weightage.

OPERATIONAL RISK AND OTHER RISKS

Risk Management Framework, Value-at-Risk Models, Information and Systematic Risk. It carries 33.33% weightage.

Exam IV Format

Exam IV is an online exam with 24 Multiple Choice Questions. The time duration is of 1 hour. And the minimum passing percentage is again 60%.

Syllabus of Exam IV:

CASE STUDIES

Here you will have to study the various cases like Barings, LTCM, NAB-FX Options, n Bankers Trust, Washington Mutual etc. It carries 63% weightage.

STANDARDS: GOVERNANCE, BEST PRACTICES, ETHICS

PRMIA Bylaws, Governance Principles, Standards of Best Practice, Conduct, and Ethics. It carries 37% weightage.

Who can be a PRM Exam?

Anybody interested in Risk Management Career especially Financial, Bank, Investment Professionals, Analysts.

Candidates with MBA, CA, BE, B.Tech degree can go for PRM Certification Exam.

Which is suitable FRM or PRM?

Whether you are FRM or PRM, the type of work that you are going to do in your job will not be much different. However what you need along with your designation is the practical knowledge.

FRM is older compared to PRM, therefore it is well recognized in the market.

Some people consider FRM is much tough to crack. And the eligibility of Professional Risk Manager is very relaxed; also you can appear any time of the year for PRM exam.

After all, it’s one’s own decision, as per their comfort, time and other circumstances they should decide where they want to go for.