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.

RELATED TERMS
  1. Certified Treasury Professional ...

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

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

    A professional designation program that provides managers with ...
  4. Energy Risk Professional - ERP

    A professional designation awarded by the Global Association ...
  5. Chartered Mutual Fund Counselor ...

    A professional designation awarded by the College for Financial ...
  6. Accounting Theory

    Assumptions, methodologies and frameworks used in the study and ...
Related Articles
  1. Career Education & Resources

    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.
  2. Professionals

    Financial Certifications With The Best ROI

    These certifications will land you a long, profitable career for an affordable price.
  3. Professionals

    Pass Your CFA Exams on the First Try

    Become one of the elite who pass these exams by using these simple study methods.
  4. Professionals

    How to Prepare for the CFA Exams

    To pass the CFA exam, get organized, develop an effective study program and review.
  5. Professionals

    Getting Accredited For A Career In Credit Analysis

    We go through the education and certifications you need to join this growing field.
  6. Professionals

    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.
  7. Professionals

    What's on the CFA Level II Exam?

    The Chartered Financial Analyst Level II exam is the second of three tests that CFA candidates must pass.
  8. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  9. Professionals

    Introduction To The CAIA Designation

    Are you preparing for a CAIA designation? Don't worry, we'll give you a bit of insight.
  10. Professionals

    Introduction To The Series 65 Exam

    The Series 65 is required in many states in order to be a fee-based advisor. Find out what it is and whether you need it.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. What certification series does one need to be a bond broker?

    One major requirement before one can become a bond broker is to pass the General Securities Representative Exam, commonly ... Read Answer >>
  4. Is a financial advisor required to have a degree?

    Discover the minimum educational requirements and financial licenses needed to become a financial advisor in the modern corporate ... Read Answer >>
  5. Does NASAA or anyone else give out the series 63 exam questions?

    Find out about studying for the Series 63 exam and how new exam questions are developed by finance professionals. Learn about ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center