The Definitive Guide to Certification in Risk Management in 2022

Consider earning a certification if you want to advance your career in risk management. You can choose the right certification for your target position and potentially further your career by being aware of the variations between various risk management certification types. We describe risk management certificates in this post, go through each type of certification, and talk about the advantages of getting the best risk management certification for your profession.

What is a risk management certification?

A risk management certification is an industry-standard credential that measures a candidate's experience and background knowledge in evaluating and making decisions about risk. Some employer policies and regulations in your region may require you to pursue a certification before beginning a career in risk management. Risk management certifications also demonstrate your:

• Technical ability in risk management
• Performance competency
• Career dedication
• Ethical commitment
• Educational background
• Practical experience in the industry

What does a certified risk management professional do?

Professionals who pursue a certification in risk management typically include risk managers, financial professionals, accountants, brokers, insurance agents and attorneys. Certified risk management professionals are responsible for identifying, investigating and measuring risk for an organization. They often provide company leaders and executives with detailed advice about how to leverage risks into opportunities and when to focus on prevention and mitigation. Certified risk management professionals also focus on:

• Helping organizations adapt to a fluctuating market
• Monitoring legal compliance
• Developing strategies to improve operational efficiency
• Creating programs to boost public relations for an organization
• Assessing and enhancing financial health
• Providing organizations advice about adjusting to economic changes

Types of risk management certifications

Risk managers work in a variety of fields, such as health and safety, finance and insurance. Knowing what makes each certification unique can help you choose a credential that fits your industry and advances your career. Consider the following types of risk management certifications:

RIMS-CRMP certification

The Risk and Insurance Management Society (RIMS) offers a Certified Risk Management Professional (CRMP) certification for all risk management professionals. Adding a RIMS-CRMP to your resume can help hiring managers quickly understand your professional competency, risk management education knowledge and extensive experience, which can boost your chances of getting a job. The RIMS-CRMP certification is an American National Standards Institute (ANSI) accredited certification. This means it complies with international risk management regulations and upholds a rigorous code of ethics, including a commitment to legal compliance, professional conduct and proper confidentiality.

Aspiring RIMS-CRMP professionals can take the certification exam online or in person. To take a RIMS-CRMP certification exam, consider reviewing your educational and experience background to ensure you meet one of the following prerequisites:

• A bachelor's degree in risk management and one year or full-time experience, including internships
• A nearly completed bachelor's degree in risk management
• Any bachelor's degree and three years of full-time experience
• Seven years of risk management experience
• An Associate in Risk Management (ARM) and five years of full-time experience

Once you've become RIMS-CRMP, you can pursue continuing education in risk management to maintain your certification.

CRM certification

The National Alliance for Insurance Education and Research offers a Certified Risk Manager (CRM) certification for professionals in a variety of fields, including risk management, insurance, finance and law. Becoming a CRM may help boost your professional reputation and demonstrate your practical experience in identifying, assessing and managing risk in your chosen field. To develop your knowledge of risk management strategies, you can complete a program of certification courses either online or in person. These courses include:

• Analysis of risk
• Control of risk
• Financing of risk
• Practice of risk management
• Principles of risk management

After completing the program, candidates receive an internationally recognized CRM certification and pursue long-term professional development to maintain their credential.

PMI-RMP

The Project Management Institute (PMI) provides a Risk Management Professional certificate (RMP) for senior risk management professionals and project managers who are interested in advancing their careers. Earning a PMI-RMP certificate showcases your skills in classifying, evaluating and preventing unnecessary risks and identifying opportunities for growth. This may help boost your organization's reputation and provide assurance to your clients, stakeholders, employer and colleagues in your level of expertise.

If you're interested in taking a PIM_RMP examination to obtain your certification, consider checking the application requirements to help you prepare. The experience-focused prerequisites include:

• A secondary degree, such as a high school diploma
• 36 months of experience in project risk management in the last five years
• 40 hours of education in project risk management

An alternative set of prerequisites focuses on education, including:

• A bachelor's degree
• 24 months of experience in project risk management in the last five years
• 30 hours of education in project risk management

After passing the exam and getting a PMI-RMP credential, risk managers complete professional development training to maintain their certification.

ERM certificate

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) offers an Enterprise Risk Management (ERM) certificate. This certification may appeal to professionals who:

• Handle risk management for an organization, such as risk managers
• Provide enterprise risk management advice, such as consultants
• Oversee enterprise risk management, such as board members

To acquire an ERM certification, candidates complete a self-paced course, in-person workshop and online examination.

CERA

Aspiring financial risk managers can earn a Chartered Enterprise Risk Analyst (CERA) certification from the Society of Actuaries (SOA). Adding a CERA certification to your finance resume can showcase your ability to accurately advise clients about risks and support organizations by developing overall risk management protocol. CERA candidates take a set of courses over one to four years in subjects like:

• Foundational risk management
• Qualitative and quantitative aptitude
• Practical and theoretical enterprise risk management
• Actuary risk analysis strategies

To prepare for the CERA examination, it's helpful to consider your background. While there are no set education prerequisites for taking the exam, successful candidates typically have a bachelor's degree in finance, economics, accounting, business or mathematics. If you earned a bachelor's degree in a different field, you can prepare by taking a practice CERA exam, studying challenging topics and pursuing continuing education.

FRM

Aspiring financial risk specialists may pursue a Financial Risk Management (FRM) certification from the Global Association of Risk Professionals (GARP). Becoming an FRM professional can show potential employers that you have extensive knowledge about assessing and managing market challenges, such as liquidity and credit risks, as well as financial risks not associated with the market, such as internal financial management. Depending on employer requirements and industry experience, FRM-certified professionals often seek senior and executive finance positions, including:

• Finance manager
• Financial controller
• Finance director
• Vice president of finance
• Chief financial officer
• Chief executive officer

PRM

The Professional Risk Managers International Association (PRMIA) offers the internationally recognized Professional Risk Manager (PRM) designation for executive professionals. Including a PRM certification on your resume can emphasize your graduate-level understanding of business and finance. Typically, candidates who earn a PRM certification are pursuing a position as a chief risk officer or financial risk manager for a corporation or other large organization. To be eligible for the PRM examination, candidates typically fulfill the following membership, educational and experience requirements:

• Membership in a recognized professional organization, such as PRMIA or RIM
• Completion of a master's degree, such as a Master of Business Administration or a Master of Science in finance
• Completion of a bachelor's degree and two years of full-time finance industry experience
• Completion of four years of full-time work experience, including financial services or risk management in any industry

Reasons to get a risk management certification

Here are a few advantages to earning a risk management certification:

• Validated experience: Earning a certification in a specific area of risk management can help employers, clients and coworkers recognize your risk management competency and emphasize your practical expertise.
• Career advancement: A certification in risk management can establish your eligibility for senior and executive risk management roles and may help distinguish your resume from other candidates' resumes.
• Salary increase: While salaries vary based on employer, location and experience, getting a risk management certification that's right for your career may help expand your earning potential, which may increase your job satisfaction.
• Reputation management: Since certified risk managers typically follow a code of ethics, pursue continuing education and comply with professional conduct to maintain their certifications, having the right certification can help potential employers quickly understand your professional values.

How to get a risk management certification

Follow the steps below to get the certification that aligns best with your risk management career:

1. Choose a certification

Before choosing a certification, think about your long-term career goals. For example, if you're currently a junior financial manager motivated to become a senior professional, you may consider pursuing certifications directed toward advanced candidates. Consider the following factors to help you determine your target career path:

• What position you would like to have within 10 years
• What kinds of responsibilities you are interested in handling
• What type of employer you want to work for
• What kind of income you want to earn
• Which industry you want to work in long-term

2. Check the prerequisites

To ensure you're prepared to earn your target certification, consider reviewing the requirements for taking the exam. Most exams require candidates to have a specific level of education, type of background knowledge and amount of experience. Understanding your goal certification's prerequisites can help you plan career more effectively, which can help you get certified faster.

3. Take the exam

Taking an exam is an essential part of most risk management certification programs. To ensure you pass the exam, it's useful to take practice tests, study subjects that are challenging for you and take online courses for more help. While every certification has a different method of testing candidates, exams are typically available online and in person, and the exams may include a practical portion.

4. Maintain your certification

After earning your certification, you can keep it active by enrolling in continuing education. Some certifications require specific courses and hours of education, while others only specify subjects you can pursue. Regardless of your certification's requirements, furthering your risk management education can build your professional reputation, ensure your skills are up-to-date and show your commitment to the risk management profession.

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