DEFINITION of 'Professional Risk Manager - PRM '
A professional designation awarded by the Professional Risk Managers' International Association to financial risk managers who pass four exams of one to two hours each. The four exams cover financial theory, financial instruments and markets, mathematical foundations of risk measurement, risk management practices and case studies, best practices, conduct, ethics and bylaws. Successful applicants earn the right to use the PRM designation with their names, which can improve job opportunities, professional reputation and pay.
BREAKING DOWN 'Professional Risk Manager - PRM '
The study program to become a PRM covers the financial theory behind risk management, risk measurement, option theory, financial instruments, trading markets, best practices and historical risk-management failures. Individuals with the PRM designation may work as enterprise risk managers, operational risk analysts, credit risk managers, risk advisory consultants and more. Types of businesses that hire PRMs include insurance companies, asset managers, hedge funds, consulting firms and investment banks.