Certified Risk Manager: Understanding the Certification

certifiedriskmanagerWould you like to become a risk manager? The Certified Risk Manager designation, most commonly known as CRM, is one of the most important designations for risk managers working in the insurance, accounting, finance, and legal fields.

Risk management is a diverse field, and people interested in achieving the Certified Risk Manager certification don’t always have a background in finance. In this guide, we’ll look at the value of a CRM designation and the process of becoming a CRM.

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What is the Certified Risk Manager (CRM) designation?

The Certified Risk Manager designation is an important professional designation for people working in risk management. Obtaining the certification involves a learning process split into five courses, each of which lasts for 2 ½ days.

Over the course of the Certified Risk Manager process, applicants cover five aspects of successful risk management. Each course covers one aspect of risk management, and is followed by an in-depth examination.

The CRM designation isn’t necessary for everyone working in risk management, but it’s one of the most valuable designations in the industry. There are currently more than 3,300 working CRM designees, many of whom work in the finance industry.

Certified Risk Management courses are held across the United States every year, as well as online. Many professionals study for the CRM designation in order to make progress in their risk management careers.

Why should you become a Certified Risk Manager?

While the CRM designation isn’t required for a risk management career, it’s one of the most important professional designations for risk managers. Being a Certified Risk Manager makes you more marketable to employers, particularly in fields like finance and insurance.

Many firms specifically ask for professional certifications like a CRM in their hiring briefs. Recruiters, particularly in the insurance industry, also target CRMs for high-profile risk management jobs, making the designation a lucrative achievement.

Are you new to risk management? Learn more about what a risk manager does, as well as the value of designations like the CRM certification by reading our blog post on the role of a risk manager.

The five courses of the CRM certification

Becoming a Certified Risk Manager is a five-step process. The CRM Program is made up of five courses, each of which lasts for 2 ½ days, covering the various elements of risk management.

The CRM Program is open to anyone currently working in risk management, as well as other professionals whose careers involve risk assessment. Participants can vary from accountants to loss control experts, as well as insurance professionals.

Although the CRM Program is open to professionals from many backgrounds, it’s an incredibly demanding process. Participants are advised to have at least two years of professional experience in order to pass the five exams required for success.

The courses that make up the CRM Program cover the following topics: Principles of Risk Management, Analysis of Risk, Control of Risk, Financing of Risk, and the Practice of Risk Management.

Principles of Risk Management

The first course in the CRM Program is Principles of Risk Management. This course covers the fundamentals of risk management, from the core concepts of assessing and managing risk to the ethics of the risk management process.

The Principles of Risk Management course takes about 20 hours to complete, with exercises and case studies included for optimum information retention. At the end of the course, participants take a 2-hour exam to earn this part of the designation.

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Analysis of Risk

The second course in the CRM Program is Analysis of Risk. This course touches upon the topics contained in the Financing of Risk course. Because of this, it’s best to take this course immediately after completing the Principles of Risk Management.

Topics and concepts covered in the Analysis of Risk course include risk analysis and qualitative analysis. The course also covers cash discounting concepts, and finishes with a 2-hour exam for participants interested in earning the CRM designation.

Control of Risk

While the Analysis of Risk course focuses on finding risks, the Control of Risk course is all about controlling them. This course covers topics like dispute resolution, safety and risk control, and managing crises and claims.

Like the other courses in the CRM Program, the Control of Risk course finishes with a 2-hour exam. Many participants may take this course, and others, without the final exam in order to gain the knowledge without the professional designation.

Financing of Risk

The Financing of Risk course is one of the most complex and demanding courses in the CRM Program. It covers topics such as financing options, quantitative analysis, accounting and auditing perspectives, and more.

CRM Program organizers generally recommend that participants take the Analysis of Risk course before starting the Financing of Risk course. Like the other courses, the Financing of Risk course ends with a 2-hour optional examination.

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Practice of Risk Management

The final course in the CRM Program is Practice of Risk Management. This course is an all-round course, consolidating the knowledge that participants pick up from the first four courses and preparing them for an advanced career in risk management.

Topics covered in the Practice of Risk Management include how to build a team of risk management professionals and risk management for enterprises. This course also covers important professional concepts like due diligence and monitoring.

Ongoing Risk Management Education

Once you’ve passed the five courses that make up the CRM Program, you’ll become a Certified Risk Manager. However, in order to keep the professional designation, you will need to take part in an annual 2 ½-day refresher course.

Are you ready to become a Certified Risk Manager?

Becoming a Certified Risk Manager is an intensive process, and not all of the people that start the five courses succeed in the challenging exams. However, with the right combination of focus and dedication, you can gain the CRM professional designation.

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