Risk Certification: The New Normal in Risk Management

“Develop a passion for learning. If you do, you will never cease to grow.”– Anthony J. D’Angelo

As organisations face increasingly complex financial and operational risks, the demand for certified risk management professionals has surged. In today’s competitive job market, a risk certification has become essential, not just as a mark of subject matter expertise but as a crucial step in ongoing professional development.

The 30,000 strong certified risk managers registered with the Global Association of Risk Professionals (GARP) work for top financial institutions and benefit from higher-than-average compensation based on an article published on Wall Street Mojo.

Learning on the job has always suited my personality and career path. I also prioritise acquiring knowledge as part of my daily routine.

I discussed risk certification with my team to recognise their development and expertise. We explored the value of certifications and identified a list of those most relevant to our field. And it was that discussion, which gave me the idea for this blog. Please note that I can also help you implement and run your risk and compliance training.

The competition among risk professionals is rising

The demand for risk professionals has grown, but so has the competition. With more than 30,000 certified FRM® professionals globally, and numerous others with different risk certifications, standing out requires a commitment to professional development.

Certified individuals are those who decide to go the extra mile to learn and to demonstrate their commitment to their discipline, or to gain access to a new sector. It says a lot about their personality and motivation.

As a recruiting manager, I consider certifications as a plus especially in certain specialised areas such as technology and cyber risk. I am also someone who likes to have a very broad range of perspectives and capabilities in my team; for that reason, my team is partially composed of non-risk professionals. And I find myself favouring people who, though working in a different field, have made the effort to show their commitment to learn about the new discipline they want to move into.

On its own, a certification is not enough to land a job. But it can be a marker when I think about the CVs I have received in the past which pretty much all looked the same. Same experience; same type of companies …

I suspect the risk discipline will reach the stage where having a risk certification is going to become the norm. At that point, the added value of the piece of paper will not be a higher salary, it will be getting a job. I have observed a similar trend with the Chartered Financial Analyst® (CFA®) in certain parts of the asset management industry.

To stay ahead of the curve, and the competition, collecting certifications is likely to become a must have rather than a nice to have. As the field expands, certifications like the Certified in Risk and Information Systems Control (CRISC®) by ISACA or PRM by PRMIA reflect the industry's focus on subject matter expertise in specialised fields, from technology to cybersecurity.

Understanding the Demand for Certified Risk Management Professionals

The demand for certified risk management professionals is driven by a combination of stricter regulations, technological advancements, and emerging sectors such as environmental, social, and governance (ESG) risk and cybersecurity. As organisations assess increasingly complex risks, having a subject matter expert with recognized certification becomes invaluable. Certifications like the Financial Risk Manager (FRM) and the Professional Risk Manager (PRM) equip candidates with advanced skills in assessing risks, setting them apart in a competitive job market.

Why Certification Matters for Your Career Growth

Certification reflects a commitment to professional development and provides specialised risk management expertise. Studies indicate that certifications can boost salaries by 20-40% in fields with skill shortages. Programs like FRM and Certified Risk Management Professional (CRMP) prepare candidates to manage financial operational risks with practical, workplace-ready skills.

Moreover, as a recruiting manager, I find certifications especially valuable in specialised areas, such as technology and cyber risk, where subject matter knowledge directly impacts risk management efficacy. A certification signals a candidate’s proactive approach to assessing risks and adapting to industry shifts.

I would put an immediate disclaimer to this statement: it is never clear to me whether such findings are the result of the certification or are explained by the people answering the survey being in higher paid job.

That said, many certifications, for example the CFA®, give access to well-paid jobs not always available to people without such certifications. In addition, the article from Wall Street Mojo gives some interesting insights on average remuneration of FRM holders.

Certifications also incorporate case studies and practical applications, making them valuable resources for learning to assess risks effectively. For instance, the FRM® certification connected foundational knowledge across financial and operational risk components, highlighting how theory applies in practice.

Looking beyond risk management, there is a wealth of information available out there for the IT or Health section. For example, 81% of North American IT departments are currently affected by skill gaps and therefore actively looking for talent, and that's valid even now during the pandemic. This has a direct impact on the value of IT certifications as shown in this PC article.

Finally, and like for any type of education programme, the credibility of the institute you choose needs to be factored in.

Using a risk certification to learn new skills and techniques

When I took the FRM®, I found it very well structured and holistic. It connected the dots fairly neatly across regulation, capital management and risk management.

For someone who needs to get that broad understanding, it is an excellent way to get exposed to the foundational components of risk management.

There is a very diverse and specialised offering out there. From climate risk to Environmental, social and corporate governance (ESG), you can learn on a lot of topics.

And on a more personal note, I find that risk certifications tend to focus on the basics and well-established frameworks and methodologies. I would love to see more innovative approach to risk management, similar to what you would find in technology or healthcare.

A short list of risk certifications

With all of that said, here is a “short-list” of risk certifications:

Institute of Risk Management (https://www.theirm.org)

- International Certificate in Enterprise Risk Management

- International Certificate in Financial Services Risk Management

- International Diploma in Risk Management

- Digital Risk Management Certificate

- Supply Chain Risk Management Certificate

PRMIA (https://www.prmia.org)

- Professional Risk Manager

GARP (https://www.garp.org/#!/home)

- Financial Risk Manager

Chartered Institute for Securities & Investment (https://www.cisi.org/)

- Advanced Certificate in Operational Risk

- Diploma in investment Operations

The Institute of Operational Risk (https://www.ior-institute.org/education/corm-syllabus)

- Certificate in Operational Risk Management

Society of Actuaries (https://www.soa.org)

- Chartered Enterprise Risk Analyst

National Alliance for Insurance Education and Research (https://www.scic.com)

- Certified Risk Manager

ISACA (Advancing IT, Audit, Governance, Risk, Privacy & Cybersecurity | ISACA)

- Certified in Risk and Information Systems Control (CRISC®)

Getting Started: Study Tips and Certification Prep Essentials

Preparing for certifications like the FRM, PRM, or CRMP involves investing in the right study materials and setting dedicated study times. Quality materials and practice exams are essential, as they provide the tools needed to tackle real-world problems reflected in certification exams. Here are a few tips:

• Study Materials: Invest in quality study materials from reputable sources. These often include practice exams, which are essential for understanding the format and focus of certification tests.

• Study Times: Allocate specific times for study each week, aiming for consistency. Professionals recommend 2-3 hours of study per day to cover the comprehensive material effectively.

• Leveraging Case Studies: Apply theoretical knowledge through case studies, as they provide practical perspectives and reinforce the concepts you'll encounter on the exam.

Looking Forward: The Future of Certified Risk Management Professionals

As the field of risk management continues to evolve, we’re likely to see certifications becoming even more specialised. Areas like climate risk, digital transformation, and ESG will demand certified professionals who can bring both subject matter expertise and practical solutions to complex challenges.

For me, learning on the job has always been my preferred approach, but I value certifications for the structure they offer. Expanding my own knowledge base through additional certifications like investment operations or ESG will enable me to keep pace with emerging industry demands. Ultimately, pursuing professional development through certifications helps us all stay adaptable, knowledgeable, and prepared for the financial operational challenges of tomorrow.

I will always remain someone who learns on the job. I took the FRM to anchor the experience I had accumulated after learning on the job for many years.

I must also confess I miserably failed at the CFA®. I passed level 1 and then never managed to get through level 2 mostly by lack of interest and relevance in my field … oh, well!

I am now contemplating expanding and learning new skills for example by taking the Diploma in Investment Operations from CISI, or focusing on Climate Risk and ESG.

I am a generalist. My attitude toward learning has always been:

“learn enough to be dangerous but not so much that I become the specialist.

Certifications give me the opportunity to expand my base of knowledge and be able to ask candid but difficult questions on a broad range of topics. And this makes me more effective at my job.

In today’s evolving risk landscape, earning a risk certification is a strategic move toward becoming a subject matter expert with specialised skills. Embracing continuous professional development through certifications positions you ahead in a competitive job market, equips you to navigate financial operational risks, and strengthens your ability to contribute effectively to your organization’s success. Remember, the journey of learning never stops, and the tools and expertise gained along the way are invaluable assets.

---

Ready to advance your career? Let’s discuss how I can help implement and tailor a risk management expertise program that aligns with your team’s professional development goals. Whether you're seeking guidance on study materials, case studies, or a structured approach to assessing risks, I can assist in creating a path for certification that empowers your team to succeed as certified risk management professionals.

---

Other interesting articles -

https://www.bankersbyday.com/risk-management-courses-certifications/

https://theundercoverrecruiter.com/certification-help-better-job/

---

FAQs

• What is a risk management certification, and why is it important?

  A risk management certification is a professional credential that demonstrates expertise in assessing, managing, and mitigating risks in various industries. It is important because it validates your subject matter knowledge, makes you more competitive in the job market, and often leads to higher compensation.

  
  

• Which certifications are best for a career in risk management?

  Popular certifications include the Financial Risk Manager (FRM) by GARP, Professional Risk Manager (PRM) by PRMIA, and Certified in Risk and Information Systems Control (CRISC) by ISACA. Your choice depends on your career focus—financial risk, cyber risk, or general risk management.

  
  

• How long does it typically take to prepare for a risk management certification?

  Preparation times vary by certification, but most require 150-300 hours of study. Allocating consistent study times, using quality study materials, and practicing with case studies can help you succeed.

  
  

• Do risk certifications guarantee higher salaries or promotions?

  While certifications don’t guarantee salary increases, they often boost earning potential and open doors to higher-level roles. Employers view certifications as a sign of commitment and expertise, which can give you an advantage in salary negotiations and career advancement.

  
  

• Are there specific prerequisites for these certifications?

  Some certifications, like the FRM, have no formal prerequisites but require a strong foundation in finance and risk principles. Others may recommend or require work experience in a risk-related field.

  
  

• What is the difference between GARP’s FRM and PRMIA’s PRM certifications?

  Both the FRM and PRM are respected certifications in financial risk management, but they differ in focus and structure. The FRM is often more recognised in the banking industry, while the PRM may appeal to those interested in broader financial services.

  
  

• How can risk certifications help in sectors beyond finance?

  Risk certifications are valuable in sectors like IT, healthcare, and supply chain management, where understanding risk is crucial. Certifications like CRISC (for IT risk) or Supply Chain Risk Management can enhance your expertise in specialised areas.

  
  

• How do I choose the right risk certification for my career goals? Consider your industry, career goals, and areas of interest. Research the focus of each certification and review the curriculum to find the one that aligns best with your professional aspirations.