Associate Professional Risk Manager

CANDIDATE GUIDEBOOK
THE CORE CONCEPTS OF RISK MANAGEMENT

Professional Risk Managers’

International Association
 EXECUTIVE SUMMARY
Designed by industry leaders, the Associate Professional Risk
Manager certificate (Associate PRM) is intended for staff
entering the risk management profession, or those who interface
with risk management disciplines on a regular basis and who
want to understand fundamental risk management methods and
practices. It is mathematically and theoretically less detailed
than PRMIA’s Professional Risk Manager (PRM™) designation
and will cover the core concepts of risk management.

The Associate PRM exam consists of 90 questions. The syllabus

is based on the publicly available book, The Essentials of Risk
Management, together with extensive information freely
available on the PRMIA website.

Registration for the exam is via the PRMIA website and taking the exam is designed to
suit the needs of the busy risk professional.

Passing the Associate PRM carries an exemption from Exam IV of the PRM Exam. Be sure
to read this entire document to view important information that will help you be a
successful candidate.

We hope that you will join us in promoting the PRM program as the standard for our industry
and that you will join in our efforts to ensure that it will continue to meet the needs of our
members and our industry.

CONTENTS
1 EXECUTIVE SUMMARY
2 PROGRAM DESIGN
3 PROGRAM DATES
AND LOCATIONS
3 FEES AND REGISTRATION
4 TAKING THE ASSOCIATE
RISK MANAGER EXAM
6 ASSOCIATE PRM SYLLABUS
14 PREPARING FOR THE
ASSOCIATE PRM EXAM
PROGRAM DESIGN
DESIGN RATIONALE
The Associate PRM is intended for staff entering the
risk management profession, or those who interface
with risk management disciplines on a regular basis,
such as auditing, accounting, legal, and systems
development personnel who want to understand
fundamental risk management methods and
practices. Designed to be highly practical, it is
mathematically and theoretically less detailed than
PRMIA’s Professional Risk Manager (PRM™)
designation. The program covers the core concepts
of risk management, allowing non-specialists to
interpret risk management information and reports,
make critical assessments, and evaluate the
implications and the limitations of such results.
Risk is an integral component of every forward-
looking transaction. Now more than ever before, it
is essential to understand the multiple dimensions
of risk as well as how to best manage risk to gain a
competitive advantage.
The knowledge demonstrated by passing the
Associate PRM provides a practical, non-ivory tower
approach that is necessary to effectively implement
a superior risk management program. Successful
candidates will be able to:
■ Understand corporate governance,
compliance and risk management
■ Be able to implement integrated risk
management
■ Know how to measure, manage and hedge
market, credit (retail and corporate) and
operational risk
■ Define the roles of board members and
senior management in managing risk
Passing the Associate PRM will demonstrate the
essential knowledge necessary to understand and
manage risks in any corporate or economic
environment.
KEY LEARNING OBJECTIVES
The key learning objectives of the
Associate PRM are to:
■ Gain a familiarity with the concept of risk
management and its place in the business,
organization or system
■ Gain an overall understanding of the
concepts of risk management techniques
in a non-quantitative framework
■ Understand how governance fits into the
concept of risk management
■ Understand the concepts of risk and return
■ Gain a familiarity with the structure and
workings of various financial markets
■ Gain a familiarity with the financial
instruments used in risk management
■ Understand the concepts of interest rate
risk and hedging
■ Understand the concepts of asset-liability
management
■ Understand the concepts of market
risk management
■ Understand the concepts of retail and
commercial credit risk management
■ Understand the concepts of operational
risk management
■ Understand how performance can
be measured
■ Understand the concept of enterprise
risk management
■ Understand industry standards and best
practices of financial risk management
■ Understand the positive role that
risk management can play
2
 READING MATERIAL
The Essentials of Risk Management, Second PROGRAM DATES
Edition by Michel Crouhy, Dan Galai, and Robert AND LOCATIONS
Mark (McGraw-Hill, 2014, 0-0-7181851-0)

The following reading materials are all freely

available from the PRMIA website at
https://www.prmia.org/aprm-web-resources
■ Abridged excerpts from the PRMIA Guide to
Financial Markets (McGraw-Hill, © 2008)
available as a separate document per chapter.
■ Risk Management Practices — abridged from
Chapters B.1 of the PRMIA Handbook (PRMIA
Publications ©2004) Volume III, plus a paper,
The Evolution of Counterparty Credit Risk
Management — available as a single document.
■ The PRMIA Standards
• PRMIA Bylaws
• PRMIA Standards of Best Practice,
Conduct and Ethics
• PRMIA Governance Principles
■ Case Studies — these are available as
12 separate documents
For your convenience, the exam is offered on every
business day of the year.
■ You may request to schedule your exam at
any time. There is no advantage to taking your
exam on any particular date. Questions within
an exam are drawn from a large database of
questions and are administered randomly,
creating thousands of unique exam forms, all
of comparable difficulty.
■ PRMIA uses the services of VUE, part of
the Pearson Publishing family, to administer
the Associate PRM exam. Pearson VUE is a
professional testing firm that has over 5,500
testing centers in more than 165 countries
around the world.
■ Please note some important details about
registration, cancellation, identification require-
ments and space availability in the Registration
section found on pages 4 and 5.

FEES AND REGISTRATION

FEES
To view your fees, relevant to your membership status, click HERE.

■ Payment by credit card is required for online purchases. If you would like to make
alternative arrangements, please contact certification@prmia.org. All manual
transactions are subject to a $25 USD processing surcharge.

■ PRMIA Sustaining and C-Suite Members are given a 10% discount on

the exam fee. You can become a Sustaining Member online at
www.prmia.org/individual-membership

■ If you are interested in adopting the Associate PRM as a corporate program, please
contact membership@prmia.org. Special pricing on exam vouchers and preparatory
materials may be available to your company.

3
 REGISTRATION
Registration for the Associate PRM exam is handled using our online form that can
be found by clicking HERE.

■ When you register, a voucher number will be provided to you that you can use
to schedule your exam at the center, date and time of your choice.
■ Once you have obtained your voucher please visit www.pearsonvue.com/prmia
and follow the instructions on how to create an account, select your testing
center online or for phone numbers where you can be assisted by a representa-
tive of Pearson VUE. 90 DAY RULE
■ Please be certain to have your PRMIA username available and to enter it Please note that there is a
correctly when registering with Pearson VUE*. Your exam results will be strict PRMIA policy that
provided to that username via the PRMIA website. It is your responsibility to exams may NOT be retaken
ensure that your PRMIA username is entered correctly when registering with within 90 days of a prior
Pearson VUE. Failure to do so may result in a delay of exam results being sitting. Any candidate
reported to you or misreporting of exam results to another member. attempt to transgress this
policy by whatever means
■ Please note that all vouchers used to schedule exams have an expiration date. may result in penalties
Should you attempt to schedule or reschedule to a date beyond the expiration against the candidate which
date of your voucher, it will not be accepted by Pearson VUE. You may contact could include forfeit of any
certification@prmia.org for a new voucher number, which will be provided to PRMIA certifications,
you without charge, subject to the condition that the request is made within vouchers, and possible
one year of the expiration date. After one year has passed since the expiration expulsion from PRMIA. This
date of the voucher, no replacements will be made. rule applies equally where
PRMIA exams are available
* Your PRMIA username will become your Pearson Vue client question. in other languages.

TAKING THE ASSOCIATE PRM EXAM

EXAM FORMAT
The exams are computer-based. You will not receive
any copies of the questions. No paper may be
brought into the testing center; however, you will be
provided with an erasable board upon request.
Once admitted to the testing room, there will be a
tutorial that introduces the functionality of the exam
and a brief message from PRMIA. After this has
been viewed, you may begin your exam. You will be
asked multiple-choice questions with four possible
responses. There are no breaks allowed during the
exam. The testing system allows you to mark and
review questions as long as time is remaining.
PERSONAL IDENTIFICATION
On the date of your appointment, arrive at the testing
center at least 15 minutes before the scheduled start time.
You must bring two forms of identification with you. The
first must be a current government-issued ID with your
photograph and signature. In addition to providing identi-
fication during the admissions process, all authorized
Pearson VUE testing centers will take a digital signature
using a signature pad and a digital photograph.
Examples of Acceptable Forms of Government Issued ID
■ Driver’s License ■ National Identity Card
■ Passport ■ Military ID

Please note that you are unlikely to finish your

Examples of Acceptable Forms of Supplemental ID
exams with substantial extra time. You are encour- ■ Credit Card ■ Employee ID Card
aged to use the tutorial in an expedient manner, but
sufficient time is allocated for you to complete the Examples of Unacceptable Forms of ID
tutorial and the exam. ■ Library Card ■ Social Security Card

4
 ARRIVE ON TIME
It is very important that you leave enough time to arrive at the testing center early.
Candidates that arrive late to the test center
may not be permitted to test. The full charge
for the exam will be made if you are not CANCELLATIONS/CHANGES
admitted for any reason. As these centers In recognition of the busy and changing schedules
offer exams for other organizations as well, of risk managers, you may change your exam
not everyone in the room will be taking the appointment without charge through the Pearson
same exam, so no assumptions should be Vue system at www.pearsonvue.com/prmia. Please
made about when other candidates enter note that all change requests must be made at
or leave the testing center. least one business day before the testing date or
the entire exam fee will be forfeited.
Because of the flexibility in rescheduling, all exam
fees are considered final sales, and refunds will
EXAMINATION ADMINISTRATION
not be granted under any circumstances.
Each testing center has an administrator who can
assist candidates with any questions that they may
have. In the event of any incident (computer failure, inadequate
supplies, excessive noise, or any other circumstance) which the
candidate believes is not compatible with good examination
conditions, this must be brought to the attention of the examination EXAM SECURITY
proctor immediately upon the incident being noticed — without
continuing the exam. Failure to inform the proctor in this manner will The Associate PRM exam is
invalidate any subsequent candidate incident reporting which cannot conducted under secure
be substantiated by the test center. conditions. Any attempt by
candidates to copy questions
by any means, including unor-
EXAMINATION RESULTS ganized memorizing, and to
Exams are graded digitally. Your exam results should be available distribute these questions to
within 15 business days of your test date and will be delivered to you other individuals, will be treat-
via the PRMIA website which you can access by logging in to the ed as unethical behavior and
PRMIA website. You will find the results within "My Profile”. may result in penalties against
the candidate which could
include forfeit of any PRMIA
certifications, vouchers, and
possible expulsion from PRMIA.
Indictment to copy, and usage
of copied questions may also
result in the same penalties.

CALCULATORS
No calculators are
needed nor provided.

5
ASSOCIATE PRM SYLLABUS

SECTION A

Risk Management: A Helicopter View

Chapter 1 of The Essentials of Risk Management
Corporate Risk Management: A Primer
Chapter 2 of The Essentials of Risk Management
A User-Friendly Guide to the Theory
of Risk and Return
Chapter 5 of The Essentials of Risk Management
■ Understand a common definition of
financial risk
■ Understand the general role that a risk
manager plays in a company, financial or
non-financial
■ Understand some of the basic language used
by financial risk managers, including risk types
like market risk, credit risk, operational risk,
reputation risk, legal risk, business risk,
liquidity risk
■ Understand that a balance between risk and
reward is a choice that can be managed
■ Understand some basic steps towards
implementing a financial risk management
program
■ Understand the concept of hedge accounting
■ Understand the use of hedging at Merck as
an example
■ Understand the concepts of:
• diversification
• the efficient frontier
• a call option’s value
• risk-adjusted returns
READING MATERIALS
The Essentials of Risk Management
• What is Risk?
• The Conflict of Risk and Reward
• The Danger of Names
• Numbers are Dangerous, Too
• The Risk Manager’s Job
• The Past, The Future —
and This Book’s Mission
• Typology of Risk Exposures
• Introduction
• Why Not to Manage Risk in Theory
• And Some Reasons for Managing
Risk in Practice
• Hedging Operations Versus
Hedging Financial Positions
• Case Study — Merck and FX Exposure
• Risk Management into Practice
• Mapping the Risks
• Instruments for Risk Management
• Constructing and Implementing a
Strategy
• Performance Evaluation
• Harry Markowitz and Portfolio Selection
• CAPM — The Arbitrage Pricing Theory
• How to Price an Option
• Modigliani and Miller (M&M)
• Behavioral Finance
• Conclusion

13% of the Associate PRM Syllabus

(12 out of 90 exam questions)

6
 SECTION B

Corporate Governance and Risk Management

Chapter 4 of The Essentials of Risk Management READING MATERIALS
PRMIA Standards The Essentials of Risk Management
unless noted

■ Understand the concept and importance • Introduction

of governance • Setting the Scene — Corporate
■ Understand the role of the Board of Directors Governance and Risk Management

■ Understand a typical financial risk • True Risk Governance

management structure • Committees and Risk Limits Overview
■ Understand basic risk management policies • Roles and Responsibilities in Practice
■ Understand the importance and meaning • Limits and Limit Standards Policies
of an escalation policy
• Standards for Monitoring Risk
■ Understand the role that external parties
• What is the Role of the Audit Function?
play in governance (external audit, regulators,
“the market”) • Conclusion — Steps to Success
■ Know the ten core PRMIA governance • The PRMIA Standards of Best Practice,
principles Conduct and Ethics
■ Understand how the PRMIA governance • The PRMIA Governance Principles
principles: • The PRMIA Bylaws
• Apply to the Board
• Apply to the finance and accounting function 12% of the Associate PRM Syllabus
(11 out of 90 exam questions)
• Apply to the risk management department
■ Know the PRMIA Standards of Best Practice,
Conduct and Ethics for Professional Risk
Managers
■ Understand the positive role that risk
management plays in the business process
■ Understand the basic operations of the
PRMIA organization and practices

7
SECTION C
An Introduction to Financial Markets
Abridged excerpts from the
PRMIA Guide to Financial Markets
■ Understand the types of instruments
in the Money Markets
■ Understand the basic characteristics of:
SECTION D
Interest Rate Risk and Hedging
with Derivative Instruments
Chapter 6 of The Essentials of Risk
Management
■ Understand the definition of
interest rate risk

• Bond Markets ■ Understand how changes in

• Stock Markets yields affect bond prices

• Foreign Exchange Markets ■ Understand how changes in the shape

of the yield curve affect bond prices
• Futures Markets
• OTC Markets ■ Understand the concepts of duration
and convexity
• Commodities Markets
• Energy Markets ■ Understand the calculation of risk
in a single security versus a portfolio
of securities

READING MATERIALS ■ Understand the basic principles of

Abridged excerpts from the • A swap
PRMIA Guide to Financial Markets • Puts and calls

• The Structure of Financial

■ Understand the basic concept of
Markets: Chapter 1 • Caps and floors

• Money Markets: • Swaptions, exotics and financial

engineering
Chapter 2
• Bond Markets:
Chapter 3
READING MATERIALS
• Stock Markets:
The Essentials of Risk Management
Chapter 4
• What is Interest Rate Risk?
• Foreign Exchange Markets:
Chapter 5 • How Does Interest Rate Risk Arise?
• Futures Markets: • Bond Price and Yield to Maturity
Chapter 6
• The Risk Factor Sensitivity Approach
• Over-the-counter Markets:
• Portfolios of Instruments
Chapter 1
• Instruments for Hedging
• Commodities Markets:
Interest Rate Risk
Chapter 7
• Financial Engineering
• Energy Markets:
Chapter 8
9% of the Associate PRM Syllabus
13% of the Associate PRM Syllabus (8 out of 90 exam questions)
(12 out of 90 exam questions)

8
 SECTION E
Measuring Market Risk — Value-At-Risk,
Expected Shortfall, and Similar Metrics
Chapter 7 of The Essentials of Risk Management
Asset-Liability Management
Chapter 8 of The Essentials of Risk Management
Stress Testing and Scenario Analysis
Chapter 16 of The Essentials of Risk Management
■ Understand the concept of notional
amounts of exposure
■ Identify and define “The Greeks” as
measures of market risk
■ Understand the basic concepts behind
Value at Risk
■ Understand the use of Value at Risk in
setting risk limits
■ Understand different approaches to determining
Value at Risk measures
■ Understand situations in which these approaches
work or don’t work
■ Understand the concepts of stress testing
and extreme events
■ Understand the process of scenario planning
■ Understand the definition and implications
of liquidity risk
■ Understand the role of the ALCO
■ Understand the concept of funding gaps
■ Understand the concept and implications
of duration gaps
■ Understand some measures of liquidity risk
■ Understand the concept of funds
transfer pricing
9
READING MATERIALS
The Essentials of Risk Management
• Introduction
• The VaR Controversy — A Quick Primer
• The Notional Amount Approach
• Price Sensitivity Measures for Derivatives
• Defining Value-at-Risk
• How Is VaR Used to Limit Risk in Practice?
• How Do We Generate Distributions for
Calculating VaR?
• Introduction
• ALM Goals, Scope, Techniques, and
Responsibilities
• ALCO
• Interest Rate Risk
• Gap Analysis
• Earnings at Risk
• Duration Gap Approach
• Beyond Duration Analysis
• Funding Liquidity Risk — Credits and Debits
• Funds Transfer Pricing
• Why Has Stress Testing Moved to the Fore?
• Types of Stress Testing and Scenario
Analysis Overview
• Stress Testing Envelopes
• Regulatory Requirements for Stress Testing
and Scenario Analysis
• Best-Practice Stress Testing
• Use of Stress Testing and Integration
in Risk Governance
• Purposes and Methodologies of Stress Testing
• Scenario Selection
• Stress Testing Specific Risks and
Complex Structured Products
• Stress Testing in Nonbank Corporations
• Conclusion: Stress Testing as an
Evolving Practice
13% of the Associate PRM Syllabus
(12 out of 90 exam questions)
SECTION F
READING MATERIALS
Credit Scoring and Retail Credit Risk Management The Essentials of Risk Management unless noted
Chapter 9 of The Essentials of Risk Management
• Introduction
Commercial Credit Risk Management
Chapter 10, 11 and part of Chapter 12 of • The Nature of Retail Credit Risk
The Essentials of Risk Management • Credit Scoring
Risk Management Practices • What Kind of Credit Scoring Models
Are There?
• From Cutoff Scores to Default Rates
■ Understand the role that a credit officer plays
and Loss Rates
■ Understand the unique concerns of retail credit risk
• Measuring and Monitoring the
■ Understand the concept of credit scores Performance of a Scorecard
■ Understand the concepts of default, • From Default Risk to Customer Value
default rates and loss rates • Securitization and Market Reforms
■ Understand the factors involved in • Risk Based Pricing
determining the value of a customer • Introduction
■ Understand how securitization can transfer risk • Rating Agencies
■ Understand the concept of pricing risk • Debt Rating and Migration
■ Understand the role that rating agencies • Introduction to Internal Risk Ratings
play in measuring credit risk • Financial Assessment (Step 1)
■ Understand the basic credit ratings • Adjustment Factors for Obligor Default Rating
from these agencies (ODR)
■ Understand the implied impact of migration • Loss Given Default Rating (LGDR)
in credit ratings • Why is Credit Risk Modeling so Important –
and So Difficult?
■ Understand internal rating scores and methods
• What Drives Credit Risk at the Portfolio Level?
■ Understand basic financial measures
in a loan risk assessment • Estimating Portfolio Credit Risk Overview
• CreditMetrics and the Credit Migration
■ Understand the concept of loss given default
Approach
■ Understand common types of counterparty credit risk
• The Contingent Claim or Structural Approach
■ Understand the use and importance of credit models to Measuring Credit Risk
■ Understand the calculation of risk in a single credit • Mood’s KMV Approach
versus a portfolio of credits • The Evaluation of Credit Portfolios
■ Understand the concepts behind credit VaR • The Actuarial and Reduced Form Aproaches
to Measuring Credit Risk
■ Understand the concepts behind CreditMetrics
models • Hybrid Structural Models
• Scoring Models
■ Understand the concepts behind MKMV models
• Conclusion
■ Understand the concepts behind actuarial and
reduced-form models • Credit Derivatives Overview

■ Understand the basic types of credit derivatives continued on next page

10
 SECTION F READING MATERIALS continued

• End User Applications of Credit Derivatives • The Role of a Credit Officer: 13% of the Associate
Risk Management Practices PRM Syllabus
• Types of Credit Derivatives
• Counterparty Credit Risk: (12 out of 90 exam
• Credit Risk Securitization questions)
Risk Management Practices
• Securitization for Funding Purposes Only
• Conclusion

SECTION G
Operational Risk
Chapter 14 of The Essentials of Risk Management
READING MATERIALS
Risk Capital Attribution and Risk-Adjusted The Essentials of Risk Management
Performance Measurement
Chapter 17 of The Essentials of Risk Management • Evolution and Definition of Operational
Risk Management
• Eight Key Elements in Bank Operational
■ Understand what constitutes an operational loss and
Risk Management
how might we quantify it
• How Can We Define and Categorize
■ Understand how operational events are linked to other risk
Operational Losses?
types, such as market, credit, liquidity or reputation risk
• What Kind of Operational Risk Should
■ Understand the concept of a key risk indicator
Attract Operational Risk Capital?
■ Understand the concept of a key risk driver • VaR for Operational Risk
■ Understand how to differentiate a key risk indicator • Scenario, Scorecard, and Combined
from a key risk driver Approaches to Quantifying
■ Understand a basic operational risk framework Operational Risk

■ Understand an approach to implementation of an • The Role of Key Risk Indicators

operational risk framework • Mitigating Operational Risk
■ Understand how to implement a simple scenario-based • Insuring Against Operational Risk
process for assessing and quantifying operational risks
• Operational Risk in Nonbank Corporations
■ Understand how to assess risks relating to new business
• Conclusion
processes, products or change management initiatives
• What Purpose Does Risk Capital Serve?
■ Understand the concept of mitigation and examples
of mitigation techniques • Emerging Uses of Risk Capital Numbers
■ Understand the role of insurance in operational • RAROC — Risk-Adjusted Return on Capital
risk transfer • RAROC for Capital Budgeting
■ Understand the concept and definition of risk capital • RAROC for Performance Measurement
■ Understand core uses of risk capital • RAROC in Practice
■ Be able to compare and contrast risk capital and • Conclusion
regulatory capital
12% of the Associate PRM Syllabus
■ Understand the definition of RAROC
(11 out of 90 exam questions)
■ Understand some uses of RAROC in business
decision making

11
Note: Chapter 15, Model Risk, of The Essentials of Note: The Epilogue, Trends in Risk Management, of The
Risk Management is not part of the Associate Essentials of Risk Management is not part of the Associate
PRM Syllabus. PRM Syllabus.

SECTION H
Case Studies
READING MATERIALS
■ Understand the lessons of the All free at the PRMIA website at
Metallgesellschaft Case Study https://www.prmia.org/aprm-web-resources
The Essentials of Risk Management (ERM),
• Case Study: Metallgesellschaft
Chapter 2
• Case Study: Orange County
■ Understand the governance lessons from
Orange County; ERM, Chapter 4 • Case Study: Riggs Bank
• Group of Thirty Derivatives Best
■ Understand the governance lessons from
Practices Summary
Riggs Bank; ERM, Chapter 4
• Case Study: LTCM Case Study
■ Understand the core principles behind the
Group of Thirty Report — Recommendations • Case Study: Continental/Penn Square
on Derivatives Use; ERM, Chapter 6 • Case Study: Bankgesellschaft Berlin
■ Understand the market risk lessons from • Case Study: Credit Lyonnais
the LTCM Case Study; ERM, Chapter 7 • Case Study: Barings
■ Understand the ALM lessons from the • Case Study: NAB F/X Options
Continental / Penn Square Case Study • Case Study: WorldCom
ERM, Chapter 8
• Case Study: Bankers’ Trust
■ Understand the retail credit risk lessons
• Case Study: Daiwa
from Bankgesellschaft Berlin
ERM, Chapter 9 13% of the Associate PRM Syllabus
■ Understand the lessons in credit risk from (12 out of 90 exam questions)
the Credit Lyonnais Case Study
ERM, Chapter 10
■ Understand the operational risk lessons
from the NAB F/X Options Case Study
ERM, Chapter 13
■ Understand the operational risk lessons
from the Barings Case Study
ERM, Chapter 13
■ Understand the governance lessons from
the WorldCom Case Study
from PRMIA Standards
■ Understand the governance lessons from
the Banker’s Trust Case Study
from PRMIA Standards
■ Understand the governance lessons from
the Daiwa Case Study from PRMIA Standards

12
 SYLLABUS SUMMARY
Number of Questions Percentage Number Percentage
Section in the Exam of the Exam of Pages of Total
A Chapters 1, 2 and 5 of The Essentials 12 13% 69 13%
of Risk Management
B Chapter 4 of The Essentials of Risk 11 12% 50 9%
Management plus PRMIA Standards
C The abridged Introduction to 12 13% 72 14%
Financial Markets
D Chapter 6 of The Essentials of Risk 8 9% 21 4%
Management
E Chapters 7, 8 and 16 of The Essentials 12 13% 58 11%
of Risk Management
F Chapters 9, 10, 11 and part 12 of The 12 13% 115 22%
Essentials of Risk Management plus
PRMIA Handbook Volume III extracts
G Chapters 14 and 17 of The Essentials 11 12% 48 9%
of Risk Management
H Case studies from the PRMIA web site 12 13% 94 18%

Total 90 100% 527 100%

13
PREPARING FOR THE ASSOCIATE PRM EXAM

Practicing risk management employees are already preparing for the exams by going
to work each day where they interact with other professionals and read industry
magazines, software manuals, company policies and procedures, academic journals,
websites and regulatory notices. They attend risk committee meetings, prepare risk
reports, give presentations and write papers. They attend PRMIA chapter meetings,
participate in on-line forums and attend risk management conferences. All of these
activities prepare candidates for the Associate PRM exam.

GUIDED STUDY

Associate PRM Webinar Series

The Associate PRM Webinar Series is intended to prepare individuals for PRMIA’s
Associate PRM Exam. This program covers the core concepts of risk management
allowing non-specialists to interpret risk management information and reports, make
critical assessments, and evaluate the implications and the limitations of such results.
Upon the completion of this series, successful candidates will be able to:
1. Understand corporate governance, compliance and risk management
2. Implement integrated risk management
3. Measure, manage and hedge market, credit (retail and corporate) and operational risk
4. Define the roles of board members and senior management in managing risk

The Associate PRM Webinar Series consists of nine one-hour webinar sessions,
comprehensive presentation materials and study guides including sample questions.

For more information please download the Associate PRM Webinar Series Brochure

The Associate PRM Webinar Series is available live or via PRMIA’s Learning Management
System, allowing participants to complete the webinar series in a self-study format.
Materials and instruction within this webinar series is based on the book, The Essentials of
Risk Management, written by Dr. Robert Mark, Dr. Michel Crouhy and Dr. Dan Galai.

To register, please click HERE.

Professional Risk Managers’

International Association
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3/18