Certified Risk Manager
|This article does not cite any references or sources. (May 2012)|
Certified Risk Manager (CRM) is a professional designation that is earned after the completion of five practically oriented courses. This certification is for those working in risk management and related fields, such as financial, insurance, loss control, legal, accounting, and claims specialists. Each 2 ½-day course incorporates the use of case studies and integrates the direct application of risk management techniques. Each of the five courses concludes with an optional 2-hour essay examination, which is required for those interested in achieving the designation. Once the designation is achieved, annual updates are required by attending a related 2 ½-day course. As of December 2012 there were 3,349 active CRM designees; approximately 70 courses are scheduled in cities across the United States every year.
- Principles of Risk Management is usually the first course participants take. It gives an overall knowledge of the risk management process.
- Analysis of Risk teaches participants to analyze and measure exposures and loss data
- Control of Risk builds proficiency in safety, alternative dispute resolution, employment practices liability, and crisis management.
- Financing of Risk compares and studies various financing options and helps attendees learn to deliver the message to management in present value dollars.
- Practice of Risk Management consolidates all aspects of risk management, including implementing and monitoring the risk management process in an organization.
To earn the CRM designation, participants must complete all five courses and pass the examinations within five calendar years. To maintain the CRM designation, designees must fulfill an annual continuing education requirement. The CRM Program is conducted by The National Alliance for Insurance Education and Research. Although the program covers the basic concepts of risk management the actual test is developed from the material that is covered in the class as opposed to a recognized standard that many other certifications and designation require. Incorrect information or methodologies may be presented by a speaker and although the information is inaccurate, students will be tested on those inaccuracies.
The certified risk manager designation is fairly new to the insurance risk management world. Currently there are more than 2000 CRMs worldwide. Risk Management is an ever growing field of endeavor, and it's a pragmatic extension of the domain of insurance.
Risk management typically includes the following five processes:
The process of identifying exposures (whether financial, social, physical, juridical, political, or otherwise) that face the organization.
Determine how these exposures impact or could impact the organization.
Determine how to control these exposures by eliminating them or reducing their effect.
The step where it is determined how will these exposures be dealt with as they arrive? Through insurance premiums paid in advance, or through internal funds, etc.
The final step in the process is to put all the above work together into practice, and ultimately to start over.
In order to secure a professional designation in this area (CRM: Certified Risk Manager) one needs to complete the prescribed coursework offered by The National Alliance for Insurance Education and Research.
- Certified Risk Analyst (CRA)
- Chartered Enterprise Risk Analyst (CERA; Society of Actuaries credential)
- Financial Risk Manager (FRM)
- Professional Risk Manager (PRM)
- International Diploma in Risk Management (MIRM designation; ERM focused)
- Association of Insurance and Risk Managers in Industry and Commerce
- Global Association of Risk Professionals
- Institute of Risk Management
- Professional Risk Managers' International Association