To achieve the professional designation of PRMIA Associate Professional Risk Manager from the PRMIA, candidates must clear the APRM Exam with the minimum cut-off score. For those who wish to pass the PRMIA Associate Professional Risk Manager certification exam with good percentage, please take a look at the following reference document detailing what should be included in PRMIA Associate PRM Exam preparation.
The PRMIA APRM Exam Summary, Body of Knowledge (BOK), Sample Question Bank and Practice Exam provide the basis for the real PRMIA Associate Professional Risk Manager (APRM) exam. We have designed these resources to help you get ready to take PRMIA Associate Professional Risk Manager (APRM) exam. If you have made the decision to become a certified professional, we suggest you take authorized training and prepare with our online premium PRMIA Associate Professional Risk Manager Practice Exam to achieve the best result.
PRMIA APRM Exam Summary:
| Exam Name | PRMIA Associate Professional Risk Manager |
| Exam Code | APRM |
| Exam Fee |
Sustaining Member Price - $658 Contributing Member Price - $679 Non-member Price - $757 |
| Exam Duration | 180 Minutes |
| Number of Questions | 90 |
| Passing Score | 60% |
| Format | Multiple Choice Questions |
| Books / Trainings | Resources |
| Schedule Exam | Pearson VUE |
| Sample Questions | PRMIA Associate PRM Exam Sample Questions and Answers |
| Practice Exam | PRMIA Associate Professional Risk Manager (APRM) Practice Test |
PRMIA Associate Professional Risk Manager Syllabus Topics:
| Topic | Details |
|---|---|
| Risk Management, Corporate Risk Management, and Risk & Return Theory |
- Define financial risk and risk types - Define the risk management process - Define the role of the risk manager - Identify the balance between risk and reward - Implement a financial risk management program - Define hedge accounting and diversification - Define the efficient portfolio and other methods - Identify basic concepts of a call option’s value - Define the concept of risk-adjusted returns |
| Risk Governance and Financial Regulation |
- Describe the Basel Accords - Contrast Economic Capital with Regulatory Capital, including Tier 1 vs Tier 2 capital - Discuss Pillar 1, Pillar 2 and Pillar 3 Requirements - Describe the concept and importance of corporate governance - Define the role of the Board, the relevant committees, and the CRO - Describe risk policies, risk methodologies, risk infrastructure, and escalation - Introduce Climate Risk Disclosure Mandates |
| Fintech and Its Impact on Financial Intermediation and Risk Management |
- Define Fintech - Discuss array of services provided by Fintech - Describe Merton approach to evaluate core functions performed by financial systems - Discuss potential impact on consumer and banking sector of the risks and opportunities that have emerged from Fintech - Describe the potential regulatory risks of Fintech |
| Introduction to Financial Markets |
- Define the overall characteristics of global markets and their common structures - Define the characteristics and types of instruments of each of the following:
|
| Market Risk, Asset-Liability Management, Stress Testing, and Scenario Analysis |
- Define what is interest rate risk and what drives it - Describe how changes in interest rates affect prices of fixed income securities - Define yield curves and forward curves and how these functions respond to market events - Define the concepts of DV01, duration and convexity applied to fixed income instruments and portfolios - Define how forwards, futures swaps and options work and how they are used to manage market risk - Describe limitations of market risk measures - Describe strengths and weaknesses of Value at Risk - Define the purpose of Asset/Liability Management - Define Interest rate gap analysis and Earning at Risk - Define measures of funding liquidity risk - Describe “What is funds transfer pricing? - Describe strengths and weaknesses of stress testing and scenario analysis |
| Credit Scoring, Retail Credit Risk Management, Commercial Credit Risk Management, Risk Management Practices |
- Define the role(s) of a credit officer - Define the principal concerns of retail credit risk and the concept of credit scores - Describe how to determine retail loan delinquency, default and loss rates - Define the role of Rating Agencies, rating transitions and default probabilities - Describe commercial loan risk assessment and internal ratings - Describe counterparty credit risk management using potential future exposure and netting - Compare and contrast Commercial Credit VaR, strengths and weaknesses of principal credit models - Define the processes of securitization, risk transfer and risk-based pricing - Describe the basic types of credit derivatives and structured finance |
| Operational Risk |
- Define what is an operational loss - Describe how operational events link to other risk types - Compare and contrast key risk indicators and key risk drivers - Describe basic operational risk frameworks - Define and describe simple scenario-based processes - Compare and contrast assessing the risks of new processes, products, or change management initiatives. - Discuss why model risk is important and widespread - Define risk mitigation and the role of insurance |
| Risk Capital Attribution and Risk Adjusted Performance Measurement |
- Describe risk capital - Discuss risk capital uses and comparison with regulatory capital - Describe RAROC - Discuss its use in business decision making |
| Case Studies and PRMIA Standards |
- Understand the core principles of PRMIA’s standards, bylaws and principles. - Understand the specific lessons learned from the case studies listed above. |
Both PRMIA and veterans who’ve earned multiple certifications maintain that the best preparation for a PRMIA APRM professional certification exam is practical experience, hands-on training and practice exam. This is the most effective way to gain in-depth understanding of PRMIA Associate PRM concepts. When you understand techniques, it helps you retain PRMIA Associate Professional Risk Manager knowledge and recall that when needed.
