An element of risk is inherent in every action and decision taken by your organization. Senior management needs to create a risk management strategy to perform risk assessments and maintain a GRC framework that guards against the negative consequences of potential risks.
An external way of improving your risk management process is to undergo enterprise risk management training. These courses provide aspiring individuals with the skills and knowledge they need to become high-quality professionals who can help organizations of many shapes and sizes evaluate operational risks and become more resilient amid the modern business landscape. Read on to learn more about six programs where you can earn enterprise risk management certification.
What is Enterprise Risk Management?
Enterprise risk management (ERM) is a systemic methodology that takes a holistic approach to identifying risks, examining potential losses and dangers from a top-down perspective that covers the entire organization. This differs from traditional risk management, which usually leaves each department or division to conduct oversight themselves.
Organizations that utilize ERM will often create a risk committee that includes stakeholders from all departments. Equipped with a risk committee charter, the committee will examine the strategic, legal, financial, and technological risks associated with each major business activity. ERM can also include operational risk management (OPM), which focuses on the risks associated with the company’s day-to-day operations.
The ERM framework typically features the following core components:
- Internal environment: The atmosphere and culture of the company
- Objectives: Goals that align with the organization’s overall vision and risk appetite
- Event identification: Tracking the potential outcomes of high-risk events such as new regulations or an industry crash
- Risk assessment: Studying the likelihood and possible impact of each risk on a risk assessment matrix
- Risk response: Evaluating how the organization could react to risks (e.g., by avoiding, reducing, sharing, or accepting)
- Control activities: The internal controls created by the organization for procedural processes to mitigate risk
- Information systems: Capturing and analyzing data to better understand your risk profile
- Monitoring: Reviewing policies and procedures to find areas of improvement
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Enterprise Risk Management Certification Courses
The following organizations offer ERM certifications.
1. Institute of Risk Management
The Institute of Risk Management (IRM) is the leading professional provider of ERM training and education. Their International Certificate in ERM validates a professional’s proficiency in the practice and can contribute to an international diploma in ERM.
The certification is earned via a two-module course (approximately 200 hours per module) that first teaches students the principles of risk management and then guides them through different approaches they may need to use in different organizations. The first module ends with an exam and a written assignment, and the second module concludes with two written assignments.
The IRM demands that all their services be paid in British pounds. IRM certification costs £2,512 (about $3,187) for new applicants, £2,260 ($2,867) for current members, and £1,980 ($2,512) for those living and working in a low GDP country. Applicants can pay an additional £1,600 ($2,029) for access to blended learning workshops to further their understanding of the material.
Discounted rates are also available for groups of 10 or more people enrolling for the course from the same organization. IRM membership costs range from £142 ($180) to £238 ($302). There is also a one-off joining fee of £112 for new members.
2. International Association of Risk and Compliance Professionals
The International Association of Risk and Compliance Professionals (IARCP) provides risk and compliance training in 57 countries. The IARCP has five certification programs that can be engaged through distance learning or instructor-led programs:
- Certified Risk and Compliance Management Professional (CRCMP)
- Certified Information Systems Risk and Compliance Professional (CISRCP)
- Certified Risk and Compliance Management Professional in Insurance and Reinsurance CRCMP(Re)I
- Certified Cyber (Governance Risk and Compliance) Professional CC(GRC)P
- Travel Security Trained Professional (TSecTPro)
There are no requirements or prerequisites for enrollment; the certificate never expires once you earn it. The IARCP also rewards people who go through the program with a dedicated page on their website that verifies the legitimacy of your certificates.
Students have to pass a final multiple-choice exam to validate their certification. It is an open-book exam with a 90-minute time limit. You must score 70% or higher to pass. Each person can take the exam three times per year. Your first program costs $297, but you can also receive a $100 discount if you sign up for secondary courses.
3. Open Compliance and Ethics Group
The Open Compliance and Ethics Group (OCEG) offers two core certifications aimed at improving one’s skills with GRC tools.
The GRC Professional (GRCP) certification provides resources based on the input of GRC professionals to learn the skills and processes needed to perform high-level governance. The exam is an open-book test with 100 questions that must be finished in a two-hour time frame. Answer 70 questions correctly and you pass. You can take the exam at any time and retake it six times a year for no additional fee.
Once you have a GRCP certification, you can then apply for the GRC Auditor (GRCA) certification. The open-book GRCA exam has 45 questions and is limited to one hour. Thirty-two correct answers are needed to pass.
For access to these and other OCEG courses, interested parties must pay a membership fee of $500 per year. A team membership of $2,000 a year allows a team of five or more people to earn group certifications.
4. Enterprise Risk Management Academy
The Enterprise Risk Management Academy (ERMA) features a range of risk management certifications for professionals at different stages of their careers. Here are the names of those programs and their price points:
- Certified in Risk Essentials (CRE): $199
- Enterprise Risk Management Associated Professional (ERMAP): $399
- Enterprise Risk Management Certified Professional (ERMCP): $599
- Certified in Enterprise Risk Governance (CERG): $799
Once you register for the program, you have three months to study their materials and take the exam. The CRE, ERMAP, and ERMCP exams can be retaken for $350. They also provide exam simulations so you can practice. The ERMAP certification lasts for two years. To renew it, you will have to earn certain Professional Development Units and pay a renewal fee of $150.
5. Professional Risk Managers’ International Association
The Professional Risk Managers’ International Association (PRMIA) issues four total risk management certificates. Two of the certificates — the Associate Professional Risk Manager (APRM) and the Operational Risk Management (ORM) — develop your talents in a more general sense, while the other two — the Market, Liquidity, and Asset Liability Risk Management (MLARM) and the Credit and Counterparty Risk Manager (CCRM) — focus on more specialized skills.
The APRM exam costs $680, and the other three cost $549. Members of the PRMIA receive a small discount. (Memberships cost $100 a year.) Each exam can be passed with a 60% grade. There are no education or work-based requirements to take the exam. Those who don’t pass the exam will have to wait 90 days and pay $529 for a retake.
6. American Association for Investment and Financial Management
The American Association for Investment and Financial Management (AAIFM) presents several certifications, including the Certified Enterprise Risk Manager (CERM). To earn the certification, participants must complete an exam featuring a case study and multiple essay questions. The time frame for the exam is three hours. Applicants must have a bachelor’s degree or related work experience.
The exam can be taken on any day in the last week of the month. If you don’t pass, you can apply for a retake the following month by paying a $695 exam fee. CERM must be recertified every four years. The AAIFM registration fee is $400.
Getting Started With OnBoard
Enterprise risk management certification gives workers a competitive advantage when searching for jobs and boosts their impact inside an organization. But even the most talented risk management professional still needs the right support systems to maximize their skills. OnBoard’s board portal software can help any establishment protect itself from risk.
Our extensive set of features is used in the boardrooms of corporate businesses, nonprofits, governments, schools, and banks to ensure compliance and safety across their operations.
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About The Author
- Josh Palmer serves as OnBoard's Head of Content. An experienced content creator, his previous roles have spanned numerous industries including B2C and B2B home improvement, healthcare, and software-as-a-service (SaaS). An Indianapolis native and graduate of Indiana University, Palmer currently resides in Fishers, Ind.
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