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):
You will study the Risk and its aversion, CAPM, Basics of capital structure, Valuation of forwarding contracts and Options Pricing. It carries 36% weightage.
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.
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:
It deals with the mathematical symbols, rules, sequences, series, Exponents and Logarithmic concepts, various Functions and graphs. It carries 4% weightage.
It includes the Moments of a Distribution, Bivariate Data, Measures of Dispersion. It carries 4% weightage.
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.
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:
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.
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:
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.