Enterprise Risk Management Certification- How To Get It
Who is an Enterprise Risk Manager?
An enterprise risk manager is a professional trained in the processes of planning, organizing, leading, and controlling activities of an organization so as to reduce the effect of risks on the capital and earnings of that organization.
The risks that are referred to here include accidental losses, financial, strategic, operational, and other forms of risks an organization can encounter.
As the years continue to go by, a number of factors have influenced organization’s reliance on Enterprise Risk Management, otherwise known as ERM.
Risk management policies of industries, regulatory bodies and even investors have come under the watchful eyes of organization’s boards as they are required to review the adequacy of risk management techniques they oversee, with the ERM being able to understand, articulate, and control the level of risks being taken in the interest of business policies.
Educational requirements and training to become an Enterprise Risk Manager
The Society of Actuaries SOA in 2007 developed the Chartered Enterprise Risk Analyst (CERA) credential.
It takes about three to four years to complete the CERA curriculum. Here, the candidate must take five exams, fulfil an online course, one in-person course, and have an educational experience requirement. A degree in business or math may prove useful although no specific university qualification is needed.
Enterprise Risk Management Certifications
Institutions like the Columbia University offer a certificate In Professional Achievement in Enterprise Risk Management; implementing programs that are expected to enhance ERM decision-making processes.
Other institutions like the New York University’s school of professional studies also offer a graduate certificate in enterprise risk management.
The University Of Toronto School of Continuing Education also offers a certificate in enterprise risk management requiring three years to complete the program; having the candidate exposed to courses such as Enterprise risk management, the foundations of risk management, operational risk and internal control fundamentals, credit and market risk fundamentals.
Other forms of certifications include the Enterprise Risk Management Certified Professional ERMCP; a certificate course offered by the ERM Academy to candidates who have three years’ experience in the field of Enterprise Risk Management, or six years’ experience in a related field like audit, and fraud investigation, and even certain categories of risk management like credit risk, market risk, operational risk.
Also, the Society of Actuaries SOA, offers the CERA credentials to risk professionals with a strong ERM knowledge if they pass a set of examinations and possess skills in the following areas: math (calculus, statistics, and probability), accounting, finance, and economics; strong skills in computer based spreadsheets, statistical analysis programs, and database manipulations.
Institutions for Enterprise Risk Management training
Institutions offering educational services in enterprise risk management include the St. John’s University, New York, which offers a Master of Science degree in ERM, with an approach that emphasizes the need for risks to be managed at the financial, reputational, and operational levels of any organization.
The Columbia University School of Professional Studies also offers a Master of Science in Enterprise Risk Management.
Other institutions that offer the training include the Credit Union Executives Society’s (CUES) School of Enterprise, offering training to senior leaders in risk management, senior executives, and others interested in improving risk management at a price of $4595 for non-members and $2395 for members.
The Institute of Risk Management (IRM) also offers an International Certificate in Risk Management to anyone interested irrespective of knowledge or prior qualifications with examination dates scheduled for July and September.
Roles, Duties, and Responsibilities of Enterprise Risk Managers
Depending on the organization, the role of an ERM may include developing, implementing, and managing enterprise risk management policies.
He/she will monitor and manage risk practices, and prepare and review independent assessment reports for the organization.
He/she will also assist in the development of business continuity programs, depending on the size of the organization, facilitate training in Enterprise Risk Management throughout the organization, and perform all other duties which relate to risk management as may be assigned by his/her company.
Enterprise Risk Management Skills
Among the various skills needed for a career in enterprise risk management is an understanding of methods for mitigating risks; having an understanding of business risks, good business analytical and problem-solving skills, oral communication, and presentation skills, as well as being able to work as a team.
Career opportunities in ERM
Career opportunities exists for enterprise risk managers in areas such as in financial institutions like banks, large organizations, like engineering and construction companies, insurance organizations, government financial institutions, stock market, and private investment houses.
Belonging to professional organizations and societies may also provide the opportunity for networking which may create more career opportunities.
Associations like Society for Risk Analysis SRA, Risk Management Society (RIMS), and Risk Management Association (RMA) could be of benefit.
Salary expectations for Enterprise Risk Managers
Salaries in enterprise risk management may range from $96, 000 to to $126,000 annually. These salaries are dependent on location and sector, and in some cases may go as low as $64,000.