Professional Risk Manager - PRM


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.

  1. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. ...
  2. Systematic Risk

    The risk inherent to the entire market or entire market segment. ...
  3. Standalone Risk

    The risk associated with a single operating unit of a company ...
  4. Country Risk

    A collection of risks associated with investing in a foreign ...
  5. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming ...
  6. Default Risk

    The event in which companies or individuals will be unable to ...
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