What Is an Energy Risk Professional (ERP)?

Energy Risk Professional (ERP) is a professional designation awarded by the Global Association of Risk Professionals (GARP) to individuals who work in the oil, coal, natural gas and alternative energy industries. People seeking this designation must complete a rigorous self-study program, pass a 180-question, eight-hour exam, have at least two years of qualifying work experience and agree to the Global Association of Risk Professionals' professional code of conduct.

Successful applicants earn the right to use the Energy Risk Professional (ERP) designation with their names, which can improve job opportunities, professional reputation and pay. The Energy Risk Professional (ERP) program is developed by seasoned energy professionals to teach applicants about real-world scenarios.

Understanding an Energy Risk Professional (ERP)

The study program to become an Energy Risk Professional (ERP) covers physical energy markets, financial trading instruments, valuation and structuring of energy transactions, risk management in financial trading, and financial disclosure, accounting, and compliance. Individuals with the Energy Risk Professional (ERP) designation may work for banks, academic institutions, consulting firms, asset-management firms and a wide variety of other organizations concerned with energy risk.

The ERP Exam

The Energy Risk Professional (ERP®) Exam is taken to earn the ERP designation. It is designed to measure a candidate's knowledge of the major energy markets and gauge their ability to manage the physical and financial risks inherent in the complex world of energy. It provides a comprehensive overview of all major energy markets, including the upstream and downstream processes associated with each, the trading and structuring of diverse energy commodities and the identification, measurement, and management of key physical and financial risks.

Exam Details

  • Time Limit: 8 hours in two 4-hour sessions
  • Cost: Varies
  • Number of Questions: 160
  • Format: Multiple Choice
  • Prerequisites: None
  • Co-requisites: None
  • Exam Date(s): May and November
  • Exam Results: Usually provided within 60 days
  • Official Exam Website: http://www.garp.org/erp/

What the ERP Curriculum Covers

Physical Energy Markets - Total weight: 40 to 45%

  • Petroleum: 15%
  • Gas:10%
  • Electricity Production and Distribution: 10%
  • Renewables and Carbon Emissions: 5 to 10%

Financial Markets - Total weight: 50%

  • Financial Products and Valuation: 20%
  • Modeling and Valuing Energy Transactions: 15%
  • Risk Management Techniques: 15%

Current Issues in Energy - Total weight: 5 to 10%