Risk Management Basics
- Derivatives Basics
- Put-Call Parity
- Forwards vs Futures
- Forward Rate Formula
- Cash Settlement vs Physical Settlement
- Backwardation vs Contango
- Residual Risk
- Best Futures Books
- Futures vs Options
- What are Options in Finance?
- Options Trading Strategies
- Call Options vs Put Options
- Options vs Warrants
- Writing Call Options
- Writing Put Options
- Gamma of an Option
- Options Trading Books
- International Option Exchanges
- Interest Rate Derivatives
- Interest Rate Swap
- Random vs Systematic ErrorÂ
- Equity Strategies
- Swaps in Finance
- Embedded Derivatives
- Commodity Derivatives
- Commodity Risk Management
- Managed Futures Strategy
- Top 7 Best Books on Derivatives
- Structured Finance Jobs
- Commodities Trading Books
- Best Commodities Books
- Fixed Income
- Equity Research vs Credit Research - Know the difference!
- Credit Analysis | What Credit Analyst Look for? 5 C's | Ratios
- Yield Curve Slope, Theory, Charts, Analysis (Complete Guide)
- Bond Pricing
- Coupon Bond
- Coupon Bond Formula
- Zero Coupon Bond
- Duration Formula
- Coupon Rate Formula
- Carrying Value of Bond
- Sinking Fund Formula
- Coupon Rate of a Bond
- Treasury Bills vs Bonds
- Coupon vs Yield
- Coupon Rate vs Interest Rate
- Credit Rating Process | A Complete Beginner's Guide
- Asset Backed Securities (RMBS, CMBS, CDOs)
- Loss Given Default - LGD | Examples, Formula, Calculation
- Top 7 Best Fixed Income Books
- ABS and MBS Index | Complete Beginner's Guide
- Top 10 Best Treasury Management Book
- Top 10 Best Credit Research Books
- Convexity of a Bond | Formula | Duration | Calculation
- Payment in Kind Bond | PIK Definition | Interest | Example
- Subordination Debt | Meaning | Example | Types | Risks
- Top 10 Best Books - Bonds Market, Bond Trading, Bond Investing
- Bonds vs Debentures
- Secured vs Unsecured Loan
- Bills of Exchange vs Promissory Note
- Bills of Exchange | Meaning | Examples | Top Features
- Promissory Notes
- Secured Loans
- Unsecured Loans
- Subordinated Debt
- Fallen Angel
- Bond Equivalent Yield Formula
- Junior Tranche
- Credit Analyst Interview Questions and Answers
- Debt Covenants | Bond Covenant Examples | Positive & Negative
- Credit Analyst Career
- Negative Covenants (Restrictive)
- Sinking Fund
- Bond Sinking Fund
- Negotiable Instruments
- Credit Spread
- Bond Pricing Formula
- Risk Management Careers
- Complete Beginner's Guide to CRM Exam
- How to Become a Quantitative Financial Analyst
- Risk Management Certifications and Salary
- Financial Engineering Career Guide: Program, Jobs, Salary
- Quantitative Analyst Salary | Skills | Trends | Top Employers
- Certificate in Quantitative Finance (CQF) Exam Guide
- Relative Risk Reduction Formula
Complete Guide to CRM Examination – There are so many risks involved in today’s businesses that entrepreneurs have to be more than ready to face them. Risk Management is therefore a necessary for any business house to succeed in the long term. Since risk involving the money is greater, accounting professionals over the world agreed upon the fact that the community needs to work towards the understanding and preparation of the risks involved in the business. The financial industry therefore formed organizations to impart lessons on the topic of risk management. Certified courses ensued and today a Certified Risk Manager is a much in demand course for accounting professionals.
Let’s take a look at the course and get a better understanding of it entirely. We have therefore prepared the article in great depth with all the nuts and bolts to provide you all the details of the CRM course. Let’s begin…
- Why CRM can be one for you?
- About the CRM Program
- CRM Program Completion Criteria
- Recommended study hours
- Why Pursue CRM?
- CRM Exam Format
- CRM Exam Fees & Results
- CRM Scholarship Program
- CRM Exam Strategy
Since you are already aware about the CRM course, let me help you understand why CRM is the best course for an accounting professional to prosper in their career.
Why CRM can be one for you?
- The overall purview of risks in any business is always going to be there and it is set to increase with the growth. A CRM course therefore is a must to be prepared for the current risk management thinking, standards and regulations across of the world
- The course has a structured curriculum that begins with the basic concepts of risk and risk management enabling even the poorest informed person to become qualified to practice these in real life situations
- The course increases a person’s confidence and competence in the finance field paving the way for his success. A CRM holder enjoys an edge over his peers and also the chance to upgrade to Certificate Membership and use the internationally recognized designation IRMCert.
- A CRM certificate is appreciated by employers particularly in the field of insurance and finance. The designation is a lucrative achievement to attain high-risk management jobs and great salary package.
Below are the basic details of the program.
About the CRM Program
Certified Risk Manager is a finance course offered by the National Alliance for Insurance Education and Research. A professional in the finance arena and interested in the risk management and fields related to it such as insurance, loss control, legal accounting, claims specialists should take this course to climb the corporate ladder. The Certified Risk Manager Program prepares the candidate for an overall knowledge in the area of hazards and management risks an organization is exposed to in the financial sector. This knowledge is combined with the practical training in sophisticated concepts of leadership, managerial and organizational skills.
- Roles: A CRM certified enjoys the designation change of being the “Planners, Protectors and Guardians” of a company.
- Exam: The CRM certificate is divided into five courses Principles of Risk Management, Analysis of Risk, Control of Risk, Finance of Risk and Practice of Risk Management.
- Exam Dates: The exam are held twice yearly in the month of June and November.
- The Deal: The course covers the basic concepts of risk management; however the questions in the exams are based on the lessons covered in the class as opposed to the recognized standard of creating question banks from the study material or books that many other certifications follow. Incorrect information or ideologies are presented by a speaker in the class and although the information is inaccurate, students are tested on their business knowledge and common sense of those inaccuracies.
- Eligibility: There is no prior educational qualification or work experience required to be eligible for the exam. Anyone who wishes to acquire knowledge and benefit from it is welcome to the course. The course is open to even active risk managers, accountants, financial and insurance professionals, loss control and legal experts or anyone associated with risk management of an organization.
CRM Program Completion Criteria
- The CRM certificate course can be successfully achieved on the completion of five practically oriented within five calendar years.
- The five courses also have the optional 2-hour essay examination to be attempted, which is required to be completed if a candidate is interested in achieving the designation.
- Annual updates are required by attending a related 2 ½-day course, an annual continuing education requirement that the candidate agrees to for the successful achievement of the designation.
Recommended Study Hours
- The CRM course is a classroom based instructional program wherein each course of the five program certificate is offered in the classroom or online by practicing risk management professionals.
- The online classroom courses last for 5 weeks with a three day exam period. Participants are expected to spend at least 4 hours per week attending two live webinars (day and evening options).
- Thus the study time for each course classroom based lasts 2-1/2 days while for the online tutorial it lasts 5 weeks and on the basis of these classes the exam is based and administered by the faculty.
What do you earn? The CRM designation!
Why Pursue CRM?
- A professional with great experience when decides to take the CRM program; it speaks volumes of his commitment to his organization and his industry.
- The CRM designation adds to a professional’s reputation and invariably adds profits to his organization.
- The CRM program not only expands a person’s knowledge but also broaden its horizon in terms of the new practical ideas and cutting edge skills that could be put to use in the daily business of the company.
- A CRM certification is often required by firms for certain designations and achieving it could lead to lucrative career opportunities. A certified CRM is definitely more marketable in the job market and stands a better chance of securing a job among his peers.
CRM Exam Format
The CRM certificate is rigorous and it is advisable that a person with at least two years of working experience in this field decide to take up this certification course. Although the five courses provided in the program are separate, they are overall a component of the whole and provide a complete and thorough knowledge of the working of the risk management practices in the business.
- Principles of Risk Management– It tests the overall knowledge of the participant about risk management from the concepts such as assessing to managing risk and ethics of the risk management process. The Principles of Risk Management course requires 20 hours of study time with exercises and case studies included. At the end of the course, participants can take the 2-hour exam to test their knowledge and take one step towards the desired designation.
- Analysis of Risk–It covers topics about analyzing and measuring risk, along with possible loss of data. Analysis of Risk course includes topics and concepts such as risk analysis and qualitative analysis as well as cash discounting concepts. There is a two-hour exam at the end of the course.
- Control of Risk–This course is all about managing risks with crisis management policies, safety proficiency, dispute resolution and Employment Practices Liability. As the above courses there is also a 2 hour exam at the end of it.
- Financing of Risk– It is one of the most complex programs and covers topics like financing options, quantitative analysis, accounting and auditing perspectives. The course primarily concentrates on the finding of various financing options to ensure minimization of operational losses.
- Practice of Risk Management–The course prepares a professional about the strategies and implementation of the risk management process within an organisation. It also teaches how to build a team of risk management professionals and risk management for enterprises. This course also covers important professional concepts like due diligence and monitoring.
The CRM final examination is a 2.5 hour essay/short answer exam which needs to be attempted at an approved testing center. Virtual proctoring is provided to National Alliance students by ProctorU for a reasonable charge.
Key Highlights about the CRM Exam Format
- It is not necessary that the CRM courses be taken in any specific order. However, it makes sense to take the five courses in the natural order of Principles, Analysis, Control, Financing, and Practice.
- A candidate is advised to take the Analysis of Risk course if he has little experience in limited experience or training in statistics and finance. The Financing of Risk course should be attempted only after the course of Analysis as there are applications of the principles taught in Analysis that are needed to understand and apply in the Financing of Risk concepts.
CRM Exam Fees & Results
The CRM classroom tutorials for each course, online as well as physical costs $430. The registration fee includes a notebook for the classroom participants and an e-notebook for the online participants.
The Exam result notifications are posted on MyPage in My Document within 4 to 6 weeks following the course.
CRM Scholarship Program
Scholarship is available for professionals who apply for the CRM course. The eligibility criteria for it are:
- First time participant of the CRM designation program
- A full-time employee in the insurance or risk management industry
- For an applicant of scholarship of the CRM program it is recommended that the individual has a minimum of two years’ industry experience
- A candidate should take any of the applicable examination – a passing grade is not required
- The candidate should demonstrate a commitment to continuing professional education
CRM Exam Strategy
- A background on the industry and minimum two years of experience is a must to be able to crack the exam.
- Pay attention to the tutorials as questions are based on the lessons taught.
- You do not have study materials or reference books to fall upon
- Be alert and keep your business sense ticking during the classes. Non-factual statements are iterated to confuse you.
- Relax, there is no minimum passing grade required so give your exam with a free mind
- Read the questions with an alert mind to avoid errors
- State the facts out if you know so that questions with non-factual elements would not confuse you
Related Links –
Considering the factors that the CRM exam is offered in the classroom and taught by practicing risk management professionals, a candidate is sure to gain an insight into the current industry scenario in order to remain relevant in their field of work. The course is great means to improve knowledge, enhance credibility on the work from and increase your earning potential. If you are interested, please take an initiative to achieve the CRM designation. Good luck to you!