4 Certifications to Make You Stand Out in the World of Risk Management
As a forward-thinking risk professional, you’ve likely considered deepening your risk management knowledge by obtaining a professional industry certification. These certifications are industry credentials that measure and validate your expertise in evaluating and making decisions about risk.
Although we know the best kind of training is on the job, there are many benefits to adding a certification to your resume, such as expanding your knowledge of the risk management field, gaining a competitive advantage over your peers, getting recognition from current and future employers, and even increasing your earning potential.
However, earning a certification requires a lot of time and effort. There are so many different certifications out there that it’s hard to decide where to start. In this blog, we’ll share the certifications that are worthwhile to pursue as a risk professional and try to guide you into finding one that is right for you.
1. Associate in Risk Management (ARM)
The first certification we recommend is the Associate in Risk Management (ARM) certification. This certification is offered by The Institutes, and is targeted to risk managers, agents and brokers, and any individual that identifies risk and develops strategies to mitigate risk. This certification can be achieved 100% online.
In order to achieve this certification, you’ll need to complete three core courses and pass an exam, which can take anywhere between 9-12 months to complete. The three core courses will help you gain a holistic risk management perspective. It focuses on risk in an evolving world and equips you with the ability to holistically identify and mitigate risk. Through the three courses, you’ll learn how to succeed in a rapidly evolving risk management landscape, how to use advanced technologies to analyze risk data, effectively assess existing and emerging risks, how to collaborate with key business stakeholders, and more. On top of these three courses, there will be an additional ethics section that is required for most certifications offered by The Institutes.
If you’re on the fence as to whether this is the certification for you, The Institutes allows you to sample the ARM in a 30–60-minute micro-course at no cost to ensure that this certification will meet your professional needs.
2. Certified Risk Manager (CRM)
The second certification we have on our list is the Certified Risk Manager (CRM) program. This certification is a nationally recognized advanced education program for ambitious risk management professionals. Having this certification conveys to others that you have a high level of technical knowledge and commitment to the risk management field.
This certification program was created in 1996 at the request of Certified Insurance Counselors (CICs) and The National Alliance for Insurance Education & Research members that wanted to expand into the risk management field. The National Alliance for Insurance Education & Research continues to be the certifying organization today.
The CRM designation is designed for professionals in risk management, insurance, finance, and law. The qualifications needed to take this course include holding a current position as a risk manager, financial or insurance professional, licensed agent/ broker, or accountant, having at least two years of full-time experience in the insurance industry or risk management, or having served as a full-time risk management or insurance faculty member at an accredited college or university.
This certification can be online or in-person. To be CRM-certified, you’ll need to complete the 5 CRM courses and pass the corresponding exam for each course. You must pass all 2.5-hour exams within the five calendar years following the year you passed your first exam to earn the CRM designation.
The CRM courses offer complex technical knowledge and approaches necessary for forward-thinking risk management professionals. The CRM courses provide a comprehensive overview of the five steps of risk management—identification of exposures, analysis of risk, risk control techniques, financing of risk, and administration. All courses are taught by expert-level professionals in the risk management field and are “continuously evaluated and revised to ensure that all material is current, relevant, and up-to-date".
The CRM certification is nationally and to an extent, internationally recognized. Having a CRM certification may boost your credibility as a risk professional as it demonstrates your practical experience in identifying, assessing, and managing risk.
3. Professional Risk Manager (PRM)
Another important certification to consider is the Professional Risk Manager (PRM) certification offered by the Professional Risk Managers International Association (PRMIA). The key difference with this certification is that it’s created for those that want to pursue executive roles, such as Chief Risk Officer, Financial Risk Manager for corporations or other large organizations, Financial Analysts, and Chief Executive Officers.
To qualify for this certification course, you’ll have to have a graduate school degree (i.e., MBA, MSF, MQF, etc.), or be a current CFA Charterholder and hold a current PRMIA Sustaining or RIM level membership. If you don’t meet these prerequisites, you can also qualify by having a bachelor's degree in conjunction with 2 years of full-time work experience or simply 4 years of full-time work experience. You’ll need to provide documentation validating that you’ve met these requirements when applying to the program.
The PRM program has a series of certification exams “designed to measure the knowledge of professional risk managers and ensure they meet a specific performance standard in their profession.” Through this program, you’ll learn the classic finance theory of risk management, foundations of risk measurement, risk management best practices, financial instruments and their associated risks and uses, the daily form and function of trading markets, and best practices of governance, conduct and ethics.
To become PRM-certified, you’ll need to pass two exams within a two-year period with a score of 60% or higher on each exam. One exam will cover Risk Management Practices while the other one will cover Finance Foundations.
You should consider this program if you’re aspiring to move up to or are currently in an executive role. This program is globally recognized and endorsed by leading universities and businesses.
4. RIMS-Certified Risk Management Professional (RIMS-CRMP)
Because you work in the world of risk management, you’re probably no stranger to the Risk Management Society (RIMS). RIMS offers the Certified Risk Management Professional certification (CRMP). This certification is available to all risk management professionals. However, there are some prerequisite requirements to achieve the certification, such as needing a bachelor's degree in risk management and one year of full-time industry experience (including internships), a nearly completed bachelor's degree in risk management, any bachelor's degree and three years of full-time experience, or six years of full-time risk management industry experience.
The RIMS-CRMP is designed to give you practical experience and demonstrate your knowledge of key risk management competencies. This is the only risk management certification that is accredited by the American National Standards Institute (ANSI) and is International Organization for Standardization (ISO) compliant. This means that this certification complies with international risk management regulations and upholds a rigorous code of ethics. If you want your certification to be internationally recognized, then this is the certification that you should strongly consider pursuing.
To become certified, you’ll need to pass an online or in-person exam. Once you become RIMS-CRMP-certified, you’ll need to continue pursuing an education in risk management to maintain your certification. You should consider RIMS-CRMP if you want to move up to senior financial, operational, and risk management roles. Having this certification will show others your professional competency, risk management knowledge, and your extensive experience in the field.
Many people say that training on the job is the best way to gain knowledge of the risk management world. We agree with this statement to a certain extent. In a competitive job market, a professional certification is a worthwhile way to deepen your knowledge of the risk management field, advance your career, and stand out amongst your peers. Although it will require a considerable amount of time and energy, it’s something to consider as you look to advance your career. There are many certifications for risk professionals to consider which can be a little overwhelming. We’ve highlighted a few that we think will be the most valuable and provided insights into each certification to help you choose the right one for yourself. If you end up pursuing one or a combination of these certifications, we wish you the best! Happy learning!