Professional qualifications are important for both individuals and organizations in which these individuals work. In the financial area, personnel involved in risk management can obtain a number of important certificates from two important international groups. In today's precarious financial environments, professional certifications can put a long way to reassuring investors and regulators and restoring them to the financial system in general. But before we examine the most common risk management organizational and individual benefits of certifications, you need to spend some time on the general recognition of the ratings and the groups that offer them. Two large groups offer risk management certificates: the Professional Risk Managers' International Association (PRMIA) and the Global Professionals Association (GARP). Both organizations make certificates widely known and acceptable, although organizations approach certifications differently.
PRMIA offers the Professional Risk Manager or PRM. PRMIA calls the PRM certificate "A higher standard in risk management" and is very flexible for professionals to prepare for certification exams. PRM is essentially the identification of skills that are likely to arise in the risk management arena during their day-to-day work. Certification alongside skills and knowledge emphasizes professional standards and integrity. In addition, the PRM examines the individual's ability to recognize not only the best practices but also the ability to apply these best practices in the right situations. The candidate must become a member of PRMIA to take part in qualification examinations and – as in many cases with professional qualifications – a candidate with other industry qualifications, such as Chartered Financial Analyst (CFA), facilitates PRM. In the industry, recruitment managers often use PRM to measure the most desirable risk management capabilities.
GARP has two major risk management certificates, FRM or Financial Risk Manager, ERM or Energy Source Professional. According to FRM, according to GARP, one of the certificates that is currently desirable for recruitment is the one who carries leading risk management positions. There are only around FRF 18,000 in the world, which is a small number for professional certification worldwide. In order to be eligible for FRM, the technician must have a two-year experience and be a member of GARP.
ERM certification obviously applies to risk managers in the energy sector who must have at least two years of experience in energy risk management. These professionals must also be members of GARP. GARP is in the process of creating an ongoing training program and ERM certification requirements that are likely to be needed in 2010. In the area of risk management, ERM is the only term that is a requirement for continuing education
It is a good idea to get a general feeling of how professionals handle risk management certificates – and what industries are looking for these professionals. The highest industries that have certified risk managers and whose recruits are looking for certificates, bankers, educators, asset managers and government organizations. In many other sectors of the financial industry, you can find certified risk managers. Professionals who hold these certificates also have a wide range of positions between junior and executive levels. The most commonly used tasks in the field are risk managers, analysts, consultants, accountants, merchants, portfolio managers and even operational managers.
What does a specialist need to undertake, manager? Depending on the program, both PRMIA and GARP ratings are strictly structured or strictly unstructured for the preparation, and both organizations only test after the test. For PRM certification, the candidate must complete four tests, either within two years or at the same time. These exams include financial theory, financial markets, risk management maths, best practices, ethics, behavior, and case studies. PRMIA will help the candidate prepare for the various preparatory courses and seminars, but the candidate is not required to be officially involved in all courses. In fact, PRMIA encourages organizations to use exams individually to test potential candidates or to test the promotion skills. As discussed, a PRM candidate can either take the full battery of the tests at one time or spread the four over two years.
The GARP FRM certificate provides a broad range of market risk, credit risk, operational risk and risk management for investments. There is only one exam to get the FRM qualification. However, ERP certification requires 250 hours of study and only one test. The core competencies of ERP include physical energy markets, compliance with risk management standards, financial trade and energy transactions.
The concrete benefits of certificates are discussed in the risk management series, but it is advisable to consider what the certificate is relevant to the organization. Professional designation demonstrates knowledge and competence in certain areas. The organization can use certificates as a way to market or prove it on the market, and can even use certification to pick and retain the best talent. In today's financial market, certification can be a major step forward for ethics and integrity at both organizational and individual levels, and this can help regulate agencies and shareholders.
The next step in this series is to look at the curriculum and study methods of each certificate and determine why it's important for this organization.
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