Course Overview
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All Levels Risk is what we take every day in all grounds because following the line is too main stream. New approach and new concepts are developed to take risk and attain better dimensions in the prospective grounds. The same approach is valid for business also. In fact business is all about risks. The only prime factor to consider in business regarding this topic is what risk should be taken or opted from the various options? This is the trickiest part where an entrepreneur feels very confused. He finds himself in utter dilemma while choosing the right track for his business in the future. That is why a strategic stratum is designed where the trained professionals will work on the risk factors based on proper information collected and analyzed using mathematical approaches. The decisions are then taken based on the solid evidence of numbers and risk calculated results.
About PRM Level 1
Professional Risk Manager (PRM) is the stratum that is designed to undertake certain measures to calculate risk forthcoming in the future of the company due to the dynamic business conditions. The examination is conducted and the certification is provided by a nonprofit organization named Professional Risk Managers’ International Association (PRMIA) started in 2002. This organization particularly focuses on the promotion of apt risk management practices and standards in a global approach.
The exam conducted certifies the aspirant as a professional risk manager when he or she passes it with 60% credentials. It is an independent validation of skills within the financial zone of the business. It also teaches about the business ethics and codes a professional must follow.
There are four exams that have to be tackled by the aspirants:
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Financial theory, instruments and market
The theoretical knowledge in finance is very important as the entire subject is based on the risk management of capital allocation, operations and other financial aspects. The instruments that are contemporarily used in the financial division to gather and calculate the information regarding the risk management have to be covered. The market trend and analysis is important to understand the pattern and identify the future trends it is going to show.
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Mathematical risk measurement foundations
This is the second exam which judges an aspirant’s grasp in mathematical calculations. The subject deals with the higher mathematical chapters like calculus, linear algebra, probability, statistics, matrix, numerical analysis and methods.
The risk is measured using the data incurred from the past records and then analyzed. Various risk management models and methods use these mathematical functions keenly. That is why it is very important for a student to have a good grip in the above mentioned topics.
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Risk management practices
This domain includes risk management frameworks dealing capital management, operational risk, counterparty risk, credit risk, market and liquidity risk, FTP and ALM.
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Case studies
The case studies are either designed or based on real events of best practices, ethics and conducts.
The first two exams are of 2 hours in duration whereas the third one is for 3 hours and the last one is for 1 hour. The entire examination is computer based and the questions are built in the multiple choice mode. There is no specific order sand the exams can be taken in any order but the entire schedule has to be completed within 2 years. The course gives credit to certain professional designations and also to those who have went through good curriculum in selected universities.
About the PRM Level 1 course
To appear for the exams an aspirants needs to go through a specific curriculum oriented training program to achieve in-depth knowledge. The training comprises of elaborate coverage of the grounds in the business that are related to the understanding and management of the risks. The course comprises of the following modules:
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Capital Asset Pricing Model
This a model that describes the relation between expected return and risk involved. This relation is used to fixate the price of the securities involved or engaged in the risk. The investors have to be compensated in the two ways which are:
- Time value of money
The time value is the risk free return to the investors. The formula comprises a risk free rate factor with which the compensation is calculated as per the money placed by them in an investment over a certain period of time.
- Risk related value
The other part of the formula comprises the risk factor considering the additional risk taken by the investor. The risk is measured with the term ‘beta’ which compares the returns available on the assets over a certain period of time with the premium.
This model compares the expected return from the portfolio or an investment with the actual return over time. If the return does not meet the expectation then the investor is barred from investing in the particular domain. This is how this module helps a business to take decision based on the future investments by analyzing the risk factors with the help of mathematical formula and raw numerical information.
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Portfolio calculations
This module aptly teaches about the portfolio models that involve probability and other mathematical implementations to learn about the portfolio models and maximize the returns from it for the benefit of the business.
The mathematical applications in this module are:
- Time series analysis
Time is the most important factor in the game of investment and return. The data that are collected in course of time is called time series data, which is analyzed to extract meaningful and related statistical information. This model is used to forecast future trends based on the statistical data and observed values. It helps to make predictions and proper decisions.
- Regression analysis
This process is widely used in statistics to estimate and correlate the variables among each other. The process is done to calculate the relation between a dependent variable and one or more independent predictors or variables. This technique also uses various models to come up with a proper process.
- Covariance and correlation
The probability and statistical theory involve these two processes to estimate and describe the degree to which sets of random variables depend and deviate with respect to changes in their expected values.
- Statistical distribution
A proper way to handle the information concocted from the data collected over time to find out the functions of the variables, both dependent and independent, is statistical distribution.
- Basic probability
The interesting part of mathematics where the occurrence of a result is calculated using numerical analysis is probability. This interesting branch is used in the risk management segment to calculate the chances of occurrence of a result expected.
There are so many other modules that cover the calculation part vividly.
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Risk management derivative
This module covers elaborately the derivative calculation and transactions in order to recognize the benefits and risks involved in the investment of the corporate. The aspirants will be equipped with:
- It is structured approach where the aspirant will be able to anticipate the needs based on the client risk management and can easily identify solution for appropriate derivative product for them.
- The module will develop skill to recognize the accounting, credit implication and cash flow of the derivative products of the clients.
- It offers better understanding of credit risk involving counterparty in the derivative products. It also imparts knowledge to identify the key drivers of the risks for the products and mitigating factors.
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Bond markets
This module covers the valuation of bond and its duration.
The training material
The course comprises of comprehensive tutorials in the form of video and animated medium. The presentation is so well defined that it will help the aspirant to understand the concepts vividly and appropriately. The guidance will provided in a conceptual step by step approach in order to deliver the maximum clarity. The entire course is designed for online tutoring by the expert professionals who know and understand the specific needs of an aspirant to become a good risk manager in the future.
Target audience for the training
This course is applicable for every student irrespective of their discipline. Graduation in a any discipline is the minimum requirement to pursue this course. This training program is best suited for the students and professionals from the financial background. Post graduates like MBA in Finance will be benefited a lot after completion of the course and passing the PRM Level 1 exams.
Those who aspire to be a renowned risk manager can opt for these exams to certify themselves as a professional. Every company needs managers in this category to identify and eliminate risks from their course of development.
Pre-requisites for the exam training
Other than the previous curriculum of the students and professionals with experience as sited above, the basic requirement for the training is just a computer with a proper internet connection. The aspirant must have the zeal to learn and passion to do something different to pass the exam and excel in this field. This domain has huge prospect and give birth to a lot of opportunities. The craze of professional risk managers are not going to decrease in near future for sure.
Frequently asked questions
- What is the basic requirement to get a PRM certification?
The candidate has to pass all the exams within two years and the aggregate marks should be equal to or more than 60%. The exams can be taken in any order but the chronology should not cover more than two years.
- What is the advantage of this course?
After clearing the exams the students are going to be a PRM and get a lot of opportunities from various companies across the globe that prefers this certification. In fact the certificate will have a unique number that can be added in the CV. It not only increases the weight but also defines the candidate from the crowd keeping him or her few steps ahead in the competition.
- Why is this designation preferred over other financial risk management designations?
The Certification has its own weight in the field of risk management and many leading universities and organizations have endorsed it throughout the world. Due to the quality delivered by the training and exams undertaken by the aspirants the companies only want PRM to manage their risks.
- Why should I choose for PRM over other certifications?
Not only in the risk profession but considering all the prospects, PRM is the best that can happen for a student from any curriculum. The training offers high command in mathematics and analytical skills that helps the student to go ahead in the future. The aspirant endorses advanced academic excellence and can do proper practical business application for risk management. The certification is very appreciated by the employers.
- Is there any requirement in experience?
If the candidate has a bachelor degree, then 2 years experience will do the charm. But in absence of a bachelor degree, 4 years is mandatory. No experience is required for those who have done their post graduation in any financial discipline.
Training testimonials
Asif Iqbal
The training is quite good and exam oriented. It changed my entire view regarding the risk management platform. I was so confident while appearing for the exams. I am a successful PRM now and getting a lot of opportunities even after getting placed under an international banner.
Mike Trott
In a word the training is mind blowing. The online videos and animated presentations impart a very good understanding of the subjects and grounds covered. I have gained good experience in a well reputed company and thinking of shifting. Opportunities are gushing in with a good remuneration than the previous one. This exam has been worthy. I recommend every aspirant to go for this one.
Ben Rigsby
After becoming a registered PRM I have accomplished so many levels that I never could have done being a simple graduate in this domain. Many thanks to the online training that made me strong and diligent to pass the hurdle.
Sumit Dev
The craze of PRM is increasing day by day. When I came across the information regarding the exams and training program I thought of taking it. After reading the reviews and testimonials I decided to give it a try. And the rest is history.
| Where do our learners come from? |
| Professionals from around the world have benefited from eduCBA’s PRM Level 1 Prep Course Courses. Some of the top places that our learners come from include New York, Dubai, San Francisco, Bay Area, New Jersey, Houston, Seattle, Toronto, London, Berlin, UAE, Chicago, UK, Hong Kong, Singapore, Australia, New Zealand, India, Bangalore, New Delhi, Mumbai, Pune, Kolkata, Hyderabad and Gurgaon among many. |
