PRM Exam (Profesisonal Risk Manager)

Updated on December 12, 2023
Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

PRM Exam (Professional Risk Manager)

PRM (Professional Risk Manager) is a designation given to any person who has passed a series of examinations conducted by PRMIA (Professional Risk Managers’ International Association) and has the necessary qualifications to certify them that they have the requisite knowledge to measure the professional risk for a financial or non-financial body, quantify it and analyze it.

Today, many top organizations look forward to designated professionals who can effectively analyze and manage those risks. PRM designations are one of those credentials which the top financial organizations are looking for. As a result, professionals who earned this designation have been recruited and placed in top organizations with the best finance industry pay scale.

PRM Exam Guide

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About PRM Exam

The Professional Risk Manager (PRM) is administered by the Professional Risk Managers International Association (PRMIA) Institute. They offer a specialized service to help you with your career needs from the foundation to the highpoint in the risk management.


Portfolio Credit Risk Analyst, Enterprise Risk Managers, Risk Advisory Consultants, Operational Risk Analyst, Credit Risk Managers. Please note that if you wish to look at Investment Banking Careers or Equity Research Jobs, then PRM is not the right exam to look at.

PRM Exam

The PRM Program consists of four examinations (Exam I, Exam II, Exam III, and Exam IV)

PRM Exam Dates

You can appear for the PRM exam at any time of the year. PRM Exams are offered at fixed intervals throughout the year.

Scheduling Window  Testing Window
January 1 – March 11, 2022February 14 – March 11, 2022
March 12 – June 17, 2022May 23 – June 17, 2022
June 18 – September 9, 2022August 15 – September 9, 2022
September 10 – December 16, 2022November 14 – December 16, 2022
January 1 – March 10, 2023February 13 – March 10, 2023
March 11 – June 16, 2023May 22 – June 16, 2023
June 17 – September 8, 2023August 14 – September 8, 2023
September 9 – December 15, 2023November 13 – December 15, 2023

Scheduling Window

This is a time frame in which you can contact Pearson VUE and fix the date when you will be sitting for your exam.

Testing Window

It is days in which you can sit for your exam.

The Deal

To get a PRM Designation, you must pass all four exams. Either you can complete all exams in one day or in four separate modules, which can be taken in any order cover of up to two years. You need to score a minimum of 60% correct answers to pass for each exam. You can retake any failed exam but must wait 60 days from the date of the failed exam.


  • You must hold a membership in PRMIA.
  • You should meet minimum experience requirements, which include:
  • 4 Years without bachelor degree
  • 2 Years with a bachelor degree
  • There are no experience requirements for a graduate at school (i.e., MBA, MSF, MQF, etc.) or a holder of other accepted professional designations (CFA exam, CAIA, CQF, etc.)

Exemption: Cross-Over Qualifications

Some great news for those who wish to pursue PRM after becoming a CFA Charter holder. 

  • The PRM program recognizes CFA charter holders and associate PRM certificate holders and gives partial credit towards completion of the requirements for the PRM designation. 
  • Therefore if you are a CFA charter holder or hold an associate PRM certificate, you can directly apply for Exam III and IV to get the PRM designation.

Exemption: University Accreditation

Suppose you have completed the graduate degree through PRMIA’s University Accreditation Program. In that case, you are exempted from PRM Exam I and Exam II, and you can directly appear for Exam III and Exam IV to get the certified PRM designation.

Program Completion Criteria

You need to pass all four examinations, need to hold a membership in PRMIA, and are required to meet the minimum experience requirements. You can take the exams in any order over up to two years.

If you appear for the PRM examination, you must give a minimum of 100-150 hours to prepare for Exam I, II & III.

For Exam IV, you can give a minimum of 50 hours of preparation in which you need to dedicate 70% of your time to reading various case studies and the rest 30% to practice the test papers.

What do you earn?

The PRMTM designation

Why Pursue the PRM Exam?

You might wonder if PRM is worth the effort, time, and money. After completing the program, you might draw a quick comparison of what you invest and finally get in return. Below, we have listed down the main reasons as to why you should pursue PRM –

PRM Exam Format

The exams conducted by PRMIA are computer-based, consisting of multiple-choice questions that are drawn randomly from the exam database according to the syllabus order and weightings. It helps PRMIA to examine the accurate details of questions by administering and evaluating the time taken by candidates to answer each question.

The following table showcases the details of PRM exams:

ExamExam NameNo. of QuestionsTime Allowed
IFinance Theory, Financial InstrumentsFinancial InstrumentsFinancial instruments are certain contracts or documents that act as financial assets such as debentures and bonds, receivables, cash deposits, bank balances, swaps, cap, futures, shares, bills of exchange, forwards, FRA or forward rate agreement, etc. to one organization and as a liability to another organization and are solely taken into use for trading more, and Markets362 hours
IIMathematical Foundations of Risk Measurement242 hours
IIIRisk Management Practices603 hours
IVCase Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws241 hour

 Let’s now look at the high-level subject matter breakdown for each individual exam.

Format of PRM Exam I

Considering the number of questions you need to attempt in a given time, the PRM Level I exam contains a total of 36 questions that need to be answered in 2 hours. The questions are MCQs selected randomly from the syllabus as per the weightage requirement, and the exam doesn’t have any negative marking. You must score a minimum of 60% to clear, and the exam can be taken only in the English language. It is an online exam conducted in more than 165 countries with nearly 5000 locations.

PRM Exam 1

source – PRMIA

  • Finance Theory – This section carries 36% weightage, and you will study about the risk and its aversion, CAPM, Basics of capital structure, Valuation of forwarding contracts, and Options Pricing.
  • Financial Instruments – This section carries 36% weightage, and hence you are required to have descriptive and pricing knowledge on the various financial instruments like Bonds, Futures and Forwards, Swaps, Credit Derivatives, etc.
  •  Financial Markets – This section carries 28% weightage. For this section, you should have knowledge of Money, Bond, Forex, Stock, Futures, Commodities, and Energy Markets.

The format of PRM Exam II

The total number of questions in Exam II is 24, for which you will get 2 hours’ time. And you need to score a minimum of 60% to clear this exam. There is no negative marking.

PRM Exam 2

source: PRM

Format of PRM Exam III

The total number of questions in this exam is 60, and the total time duration is 3 hours, and you need to score a minimum of 60%, and there is no negative marking.

PRM Exam 3

source: PRM

Format of PRM Exam IV

This exam consists of 24 multiple choice questions, and the time duration for this exam is 1 hour. To clear this exam, you need to score 60%, and there is no negative marking.

PRM Exam 4

source: PRMIA

Case Studies – This section carries 63% weightage, and for this section, you will be required to study the various cases like world com, barings, LTCM, NAB-FX options, bankers trust, Washington mutual, northern rock, etc.

Standards of Practice, Governance & Ethics – This section carries 37% weightage, and this includes a study on PRMIA Bylaws, Governance Principles, Standards of Best Practice, Conduct and Ethics, Group of Thirty Derivatives Best Practices.

Source: PRMIA

PRM Examination Fees

To take the PRM exam, you must purchase a voucher for your exam schedule ticket with the testing center, Pearson VUE. The PRM exam comprises four exams. Therefore, PRMIA sells four exam vouchers and the required study material, i.e., the PRM Handbook (printed or digital), as an exam voucher bundle.

Below mentioned are the examination fees and Handbook cost for PRM Exams (1, 2, 3 & 4):

PRM Exam Voucher BundlePriceC-Suite/Sustainer PriceContributor Price
4 PRM Exam Vouchers + Digital PRM Handbook$1200$1080$1140
4 PRM Exam Vouchers + Printed PRM Handbook$1350$1251$1282
4 PRM Exam Vouchers + Digital + Printed PRM Handbook$1400$1260$1330

PRM Terms & Conditions
*plus shipping charges, which vary by geographic location

  • For sustaining members of PRMIA 10% discount is applicable. To claim this discount, you must register directly with PRMIA at
  • Discounts are also provided to a group of 10 or more by contacting [email protected].
  • If you are exempted from one or more exams, you can still o purchase a bundle package.
  • Exam vouchers are not refundable.
  • Vouchers will expire after 30-36 months of receipt, and if the voucher expires before use, then you will need to purchase a new voucher.
  • After purchase 4 voucher codes will be delivered to you via e-mail and also available in your ‘Product Keys’ tab within your PRMIA Profile.

PRM Results and PRM Passing Rates

  • PRM results are usually announced after 15 business days of your test date.
  • PRM Exams are graded digitally.
  • The results can be accessed by signing in to your PRMIA account and going to the ‘Exams Tab’ in your ‘PRMIA Profile.’
PRM Exam Pass Rates 1

source: PRMIA

The above diagram depicts the range of the passing rate of PRM Exams. If we observe keenly, there is no much difference in passing rates of Exam I, II & III, but as we see, the passing rate of Exam IV is much higher compared to other Exams I, II & III. If you are not sure about which exams need to appear first, then you can go for first Exam IV and then later can appear for Exam I & III as you can observe both the exams has nearly 60% of passing rates and then you can take time to prepare well for Exam II and appear for it within a period of two years.

How to Prepare for PRM Exams?

Merely studying for the exams and practicing the sample exam papers will not be sufficient for you to crack them. You will be required to keep yourself updated by reading industry magazines, company policies and procedures, reading risk reports, attending risk management conferences, academic journals, PRMIA chapter meetings, etc. These activities will prepare you well for the PRM exams.

PRMIA Handbook Series

  • The Professional Risk Manager Handbook Series (Latest Edition) is the required study resource for the PRM exams.
  • You can purchase these study resources by purchasing the voucher bundle from the PRMIA website.
  • PRMIA provides study guides and training courses (sample question papers), which will be helpful for you to prepare for them.
  • The PRM handbook series and supporting materials PRMIA are designed for self-study.
  • The Professional Risk Manager Handbook Series (Latest Edition) is the required study resource for the PRM exams.
  • You can purchase this study resources by purchasing the voucher bundle from the PRMIA website.
  • PRMIA provides the Study guides and training courses (Sample Question Papers), which will be helpful for you to prepare for the PRM exams.
  • The PRM Handbook Series and supporting materials provided by PRMIA are designed for self-study.

PRM Handbook Series Details

ExamExam NamePRM Handbook Volume/Resources
IFinance Theory, Financial Instruments & MarketsVolume I: Book 1 Financial Theory and application volume I: Book 2 Financial InstrumentsVolume I: Book 3 Financial Markets
IIMathematical Foundations of Risk MeasurementVolume II: Mathematical Foundations of Risk Measurement
IIIRisk Management Practices

Volume III: Book 1 Risk Management Frameworks and Operational RiskVolume III: Book 2 Credit Risk and Counterparty Credit RiskVolume III: Book 3 Market Risk, Asset Liability ManagementAsset Liability ManagementAn asset/liability management is paying off liabilities from assets and cash flows of a company. Its proper implementation reduces the risk of loss for not paying the liabilities on time. Companies must ensure that assets and cash flows are available on time to avoid additional interest and more
 and Funds Transfer Pricing
IVCase Studies, PRMIA Standards of Best Practice, Conduct and Ethics, BylawsCase Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws

How much time do I need to prepare for PRM Exams?

  • Preparing for PRM exams will greatly differ according to the knowledge, skills, and understanding of the subject matter before your self-study.
  • The study time will also vary according to your ability to commit dedication for uninterrupted time to studies and other factors.
  • Overall, if you are preparing for the PRM certification examinations, you will be required to allocate 8 – 9 hours per week for three months for each exam.
  • If you have a busy schedule, you can take the required exams at your own pace, in any order, over up to two years. Each exam differs in length from one to two hours, so you can take 2-3 exams at once and save your time for the difficult exam.
  • Once you are comfortable and ready, it’s time for you to register for the exam.

How to increase the chances of clearing the PRM exams?

Testing Strategies

The PRM exams consist of multiple-choice questions (MCQs), and there is no negative marking for incorrect answers. However, keep in mind that it is extremely important to finish the exam in the time allotted. To finish the exam in the allotted time frame follows the below steps:

  • Do not linger over questions longer than is sensible.
  • If the exam has 36 questions in 120 minutes, do not spend three minutes per question. 
  • Go through all the questions and answer the ones you find easier or sure enough to be correct first. 
  • Divide the remaining questions in the time that remains and proceed accordingly. 
  • If you have extra time at the end of the exam, you can always go back and review the answers. If you have not answered any questions, select the best answer you can.
  • Be sure that you have answered all the questions at the end of the exam.

Usage of the Calculator

  • At the exam center of PRM, you will have online access to the Texas Instrument TI308XS calculator.
  • You can get familiarized by purchasing the handheld version of this Texas instrument to better practice using it.
  • No other such materials are allowed in the examination room.

How to Maintain your PRM Designation?

Suppose you had appeared or taken one or more 2015 edition PRM exams. In that case, you need to additionally maintain the PRM designation as these requirements have been made essential to ensure your commitment towards a risk knowledge base. Listed below are the things which the PRM holder needs to take care of:

  • You need to hold a PRMIA sustaining membership every year from the day you obtain your designation.
  • Complete 20 Continuing Risk Learning Credits (CRL). Each calendar starts with the calendar year after you obtain your PRM designation.
  • CRL credits can be obtained by attending webinars, training courses, event presentations, and articles.
  • If you are a PRM holder and fail to submit the 20 CRL credits or maintain a sustaining membership, then your PRM Designation will lapse.
  • If the PRM designation lapses for more than three years in a row, you will need to re-write PRM Exam III and pay $400 as a penalty fee to regain your PRM designation.

PRM Scholarship Opportunities

PRMIA provides scholarship opportunities to the members of the low-income groups to support their study for risk management. Many aspirants from the low-income groups have also appeared for the PRM designation due to scholarship exams. To qualify for PRMIA institute scholarships:

  • Members must have an annual income of less than USD 25,000.
  • Members should not have their professional development expenses reimbursed by a third party.
  • Members can claim scholarship discounts while registering for the exams.

What next?

If you learned something new or enjoyed the post, please leave a comment below. Let me know what you think. Many thanks, and take care. Happy Learning!

Reader Interactions


  1. Pankaj Sonawane says

    Hi DHeeraj ,

    I am really impressed with the information provided by you . I am working in Indian IT company as a Oracle financials COnsultant but i want to change my profile in Risk management .I have total 5 years of experience after MBA .I have good grasp on derivatives and understanding of financial markets .I was confused between PRM and FRM but finally closed on to PRM because its self paced and relevant experience is not required for the charter(correct me if i am wrong). Please guide me whether should i pursue PRM for these reasons or should i go for FRM ?? Also i understand that FRM has more brand recall but do PRM also has any recognition in India ??Your reply would be very helpful .Thanks in Advance

    • Dheeraj says

      Hi Pankaj,

      Thanks for your questions. I understand that you have finalized on PRM just because it doesn’t require any previous experience for the charter. What i have seen in this industry is that FRM has far more brand recall and value especially for entry and mid level jobs. Many students who clear FRM later take PRM to ensure that they are appraised with the advanced risk concepts required at a higher level.

      Also, you should note is that for finding a job – FRM certified vs FRM Pass (without the certification) will be treated more or less similar. You will not lose much here!


  2. Noor Ali says

    Thank you for the informative article
    I just wanted to ask that if i don’t have any experience can i take the exams first and get the 2 years experience after i pass the four exams?

    • Dheeraj says

      Yes Noor, i guess so!

  3. Valeria says

    Thank you so much for such articles. It is giving me a clear idea about each of credentials you have discussed such as FRM, CFA and now PRM ☺

    • Dheeraj says

      Thanks Valeria!

  4. Aman Bhatia says

    Thank you for the informative article.. I have done MBA, CFA & was desiring to pursue for one more certification. Thank you for enlightening me that I can skip 2 papers of PRM exams…..

    • Dheeraj says

      Hello Aman,

      My pleasure :-)


  5. Devendra Singh says

    Thank You Boss

    for giving such a great knowledge

    • Dheeraj says

      My Pleasure Devendra :-)

  6. Mitul Bhagat says

    Thank you for sharing information about PRM, never heared about it. It is really helpful.
    But can you share with us how PRM is different from FRM ?

    • Dheeraj says

      Hello Mitul,

      I am soon planning to write an article on PRM vs FRM. Stay put.


  7. Anusha says

    Thanks for the info. I have heard PRM and FRM are very similar. According to you Which one is better known in the job market?

    • Dheeraj says

      Between the two – PRM or FRM, FRM has a higher brand recall.

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