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.

RELATED TERMS
  1. Associate in Risk Management - ...

    A nationally recognized educational program for dedicated risk ...
  2. Certified Treasury Professional ...

    A professional designation awarded by the Association for Financial ...
  3. Accredited Asset Management Specialist ...

    A professional designation awarded by the College for Financial ...
  4. Associate In Management (AIM)

    A professional designation program that provides managers with ...
  5. CFA Institute

    Formerly known as the Association for Investment Management and ...
  6. Energy Risk Professional - ERP

    A professional designation awarded by the Global Association ...
Related Articles
  1. Personal Finance

    An Introduction To The CFA Designation

    The CFA designation is seen as the key certification for investment professionals. Find out what the CFA signifies for candidates and investors.
  2. Personal Finance

    How to Ace the CFA Level I Exam

    Prepare to ace the CFA Level 1 exam by studying systematically.
  3. Financial Advisor

    The Alphabet Soup of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  4. Personal Finance

    What to Expect on the CFA Level I Exam

    The Level I exam for the Chartered Financial Analyst designation can be challenging. Here's what to expect.
  5. Personal Finance

    An Introduction To The FRM Designation

    Learn what steps need to be taken in order to obtain the Financial Risk Manager designation.
  6. Financial Advisor

    How Hard are the CFA Exams?

    Learn about the difficulty of the CFA exams with a description of the tests, some statistics on pass rates and suggestions that can help you pass the exams.
  7. Personal Finance

    What To Expect On The CFA Level III Exam

    The Level III exam is one of the tougher exams for the CFA. Read this to give yourself a little insight.
  8. Personal Finance

    Becoming A Chartered Market Technician

    The CMT certification involves three tough exams. Find out what you need to do in order to pass.
  9. Personal Finance

    Prepare For Your CFA Exams

    Find out how to get yourself ready for these lengthy and often daunting exams.
  10. Financial Advisor

    Pass Your CFA Exams on the First Try

    Become one of the elite who pass these exams by using these simple study methods.
RELATED FAQS
  1. What are the key differences between financial risk and business risk to a company?

    Understand the difference between a company's financial risk and its business risk, along with some of the factors that affect ... Read Answer >>
  2. What are the major categories of financial risk for a company?

    Examine four major categories of financial risk for a business that represent potential problems that a company may have ... Read Answer >>
  3. What is the difference between portfolio management and financial planning?

    Understand the difference between financial planning and portfolio management, and learn which financial professionals can ... Read Answer >>
  4. How many people fail the series 63 exam every year?

    How many stock brokers failed the Series 63 exam before they passed successfully? Here is what you need to know before taking ... Read Answer >>
  5. What are the different sources of business risk?

    Explore the various sources of business risk for companies and learn how critical risk management is to a company's financial ... Read Answer >>
  6. What is the best way to study for the series 63 exam?

    Learn more about the content of the series 63 exam and how candidates should prepare for the test. Find out about potential ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center