Professional designations are conferred by a professional body that has specific entry requirements, such as a code of ethics, a set of practice standards, educational objectives, and industry experience and involvement.
Here are some current risk-management educational programs:
ASSOCIATE IN RISK MANAGEMENT (ARM)
Behind the Program: Insurance Institute of America (also offers up to 20 other insurance associate designations and the CPCU)
Prerequisites: None
Program Format and Exam: Self-study or 14-week preparation courses. Examinations are administered nationally three times per year. Beginning in December 2000, ARM students will be able to take computer-based exams any time, at locations that have yet to be determined.
Subjects Program Covers:
- Essentials of risk management
- Essentials of risk control
- Essentials of risk financing
Continuing Education Requirements: None
Cost to Complete Program:
- Books: $125 per course
- Exams: $96 each
- Classes: Locally sponsored classes average around $290 each
- Total: Self-study-up to $700; with classes -- up to $1,700
Program Director: George Head
Web Site: www.aicpcu.org
E-mail: Send E-mail to George Head
CERTIFIED RISK MANAGER (CRM)
Behind the Program: The National Alliance for Insurance Education & Research (also offers the CIC and CISR designations)
Prerequisites: None, though catalog suggests two years of risk management experience
Program Format and Exam: Must take seminars, which are given at different locations around the country. Seminars typically have a half-day session on Wednesday, full-day sessions on Thursday and Friday, exam on Saturday morning.
Subjects Program Covers:
- Risk-management essentials
- Risk analysis
- Risk control
- Risk financing
- Risk administration
Continuing Education Requirements: Must attend one National Alliance for Insurance Education & Research program every year
Cost to Complete Program:
- Course (includes exam and materials): $395
- Total: Five classes: $1,975 (not including costs to travel to seminar locations, such as airfare and hotel)
Program Director: Wayne Dauterive
Web Site: www.scic.com/alliance
E-mail: Send E-mail to CRM
FELLOW OF THE INSTITUTE OF RISK MANAGEMENT (FIRM)
Behind the Program: The Institute of Risk Management, a U.K. organization offering risk-management training worldwide
Prerequisites: FIRM-must have AIRM degree (Associate of the Institute of Risk Management), five years of risk-management experience, evidence of personal development, 4,000- to 5,000-word dissertation; AIRM-must have a degree or professional qualification
Program Format and Exam: Self-study. An assessment paper is given to students on December 1 and must be completed and returned to IRM for a grade by March 1. Students must receive a passing grade on the paper, which accounts for 25% of the overall grade.
Subjects Program Covers:
- AIRM
- Business organization and finance
- Risk analysis
- Risk control
- Risk financing
- Corporate risk management
- One additional elective course
Continuing Education Requirements: Associates and Fellows are required to complete 300 points in three years. Points are awarded based on the Continuing Education activity, such as five points for writing an article on risk management or 10 points for attending a seminar.
Cost to Complete Program:
- Student registration: $340 (one-time fee)
- Exam fee: $343 per subject
- Materials: $355 per subject
- Student forum: $3,175 (optional)
- Total: $3,830 or $7,005 with student forum
Program Director: Maureen Gibbons
Web Site: www.figtree.co.uk/irm
E-mail: Send E-mail to Maureen Gibbons
FELLOW IN RISK MANAGEMENT (FRM)
Behind the Program: Risk and Insurance Management Society, Inc. (RIMS). RIMS codeveloped the ARM program with IIA more than 25 years ago and offers ARM study courses. The FRM is the first professional designation RIMS has offered.
Prerequisites: Must first complete the ARM series or its Canadian equivalent, the CRM
Program Format and Exam: Must take the required courses at a university or college. Students can apply for exemption from up to seven courses already taken but must still pay the $50 course registration fee to RIMS. The first Capstone Exam will be in June 2000 and will be given biannually after that.
Subjects Program Covers:
- Managerial accounting
- Managerial finance
- Business law
- Management of information systems
- Three additional electives (such as Business Ethics, Holistic Risk Management, Alternative Risk Financing, Economics)
Continuing Education Requirements: Nine hours per year in such activities as completing or teaching a course, publishing an article, or volunteer work.
Cost to Complete Program:
- One-time application fee: $50
- Course registration fee: $50
- Capstone exam fee: $125
- Certificate and pin: $100
- Classes: Up to $400 each
- Total: Up to $3,300 (not including books)
Program Director: Amy Geffen
Web Site: www.rims.org
E-mail: Send E-mail to Amy Geffen
CHARTERED PROPERTY AND CASUALTY UNDERWRITER (CPCU)
Behind the Program: The American Institute for Chartered Property Casualty Underwriters (AICPCU)
Prerequisites: Three years of experience in the insurance industry
Program Format and Exam: Self-study or classes. Exams are given three times per year in centers across the country.
Subjects Program Covers:
- Ethics
- Insurance perspectives and insurance contract analysis
- Personal insurance and risk management
- Commercial Property insurance
- Commercial Liability insurance
- Insurance operations
- Legal environment of insurance management
- Accounting and finance
- Economics
- Related studies
Continuing Education Requirements: Not required, although it's available
Cost to Complete Program:
- Exams: $119 each
- Books: Up to $1,000 total materials
- Classes: $320 per class
- Total: Self-study-up to $2,200; with classes-up to $5,100
More Information: Visit www.aicpcu.org or contact George Head
FINANCIAL RISK MANAGER (FRM)
Behind the Program: Global Association of Risk Professionals, an international not-for-profit organization in financial risk management
Prerequisites: Minimum of two years of experience in financial risk management or related field. Must be an active member of GARP.
Program Format and Exam: Self-study. GARP offers a study guide and a review course that's available only in New York, London and Japan. The course takes place over a one-month period leading up to the exam.
Subjects Program Covers:
- Quantitative analysis
- Capital markets
- Market risk management
- Credit risk management
- Operational and integrated risk management
- Legal, accounting, and tax risk management
- Regulation and compliance
Continuing Education Requirements: None. Must pay GARP annual membership fees
Cost to Complete Program:
- Examination fees: $300
- Required books: $500
- Prep classes: $750
- Total: Self-study -- $800; with review course -- $1,550
More Information: Visit www.garp.com
RISK MANAGEMENT FOR PUBLIC ENTITIES (RMPE)
Behind the Program: Public Risk Management Association and the Center for the Advancement of Risk Management Education (CARME), a division of IIA
Prerequisites: None
Program Format and Exam: Self-study. Order the RMPE textbook and course guide, study them, and take the exam. You must register for the exam and select someone to administer it and return it to CARME to be graded.
Subjects Program Covers:
- Risk management from a public entity perspective
- Public entity exposure identification and analysis
- Risk control
- Claim and litigation management
- Risk-financing resources
- Pooling for public entity risk financing
Continuing Education Requirements: None
Cost to Complete Program:
- Textbook, course guide, and exam fee all-inclusive
- Total: $145
More Information: Visit www.aicpcu.org or contact George Head
Adapted from riskVue, the free monthly online magazine for risk-management and insurance professionals. See the lastest edition of riskVue at www.griffincom.com/riskVue/riskVue.htm.
Volume 20, Issue 8 of The Risk Management Letter discusses and analyzes these risk-management educational programs. To order an issue reprint, call (949) 752-1058.
RML Interactive, the online supplement to The Risk Management Letter, has links to interviews with program directors, conversations with students and instructors, and additional program information.