A Certified Risk Manager (CRM) is a professional designation given to individuals who have met certain requirements, including education and experience, in the field of risk management. CRMs are typically employed in a variety of industries where risk is a key factor, such as insurance, banking, accounting, and health care. Have a financial question? Click here. A CRM's primary role is to help organizations manage and mitigate risks. This can include anything from designing risk management programs to identifying and assessing risks to recommending solutions. CRMs must be able to think strategically and work with a variety of teams within an organization, so they can understand how risks impact the entire company. They must also be able to design appropriate policies, assessment tools, and training to help organizations mitigate risks. CRMs are not only concerned with identifying risks but also the impact of those risks. They will often work closely with management to determine how high-risk situations should be assessed and mitigated. For example, an insurance company may hold premiums steady for a few years after a major disaster in order to offset the increased risk of another such event. There are a few ways to become a CRM. One is to have a degree in risk management or a related field, such as insurance, accounting, engineering, or mathematics. Another option is to have significant risk management experience. Some organizations require both, while others only require one or the other. CRMs are required to have specific education that includes courses in law, finance, economics, and business. Many programs combine these courses into a bachelor of science degree with a major in risk management. For example, Indiana University's Kelley School of Business offers a risk management degree program that combines courses in business and law to provide the knowledge needed to become a CRM. CRMs are certified by The Association for Professionals in Enterprise Risk Management (APERM) . APERM offers three levels of certification: Certification involves completing an application, passing a background check, and sitting for the exam. The exam consists of multiple-choice questions that are timed. Every organization is responsible for managing a variety of risks. Risks that are typically managed by CRMs include: There are many benefits to becoming a CRM. Some of these include: CRMs can expect to make a higher salary than those without certification. The median salary for CRMs is $92,000, according to PayScale. Many employers offer training and certifications for their employees, which can help you gain new skills. Some of these include Certified Information Systems Auditor (CISA), Certified Internal Auditor (CIA), and Certified Financial Services Executive (CFSE). CRM certification is relatively new, but it has quickly CRMs provide a number of benefits to organizations, including: CRMs help organizations identify and assess risks. They also recommend solutions for mitigating those risks. The standards set by the CRM certification process ensure that those who have been certified have demonstrated their knowledge and skills. This increases accountability. When implementing new policies, programs, or procedures within the organization, CRMs help ensure that they are done in a way that is compliant with state and federal laws. They can also provide valuable insight from previous experiences to help establish a sound foundation for the project. Certified risk managers are in high demand due to their knowledge and skills in risk assessment and mitigation. The benefits of becoming a CRM include increased income, job security, and opportunities for growth. CRMs play an important role in organizations by helping to identify and mitigate risks.Role of the CRM
How to Become a CRM
The Education You'll Need to Become a CRM
Certification Requirements for Becoming a Certified Risk Manager
Types of Risks Managed by CRMs
Benefits of Becoming a CRM
Increased Income and Salary
Growth Opportunities
Quick Career Growth
Benefits of Working with a CRM
Helping Organizations Mitigate Risks
Increasing Accountability
Laying a Foundation for New Projects
The Bottom Line
Certified Risk Manager (CRM) FAQs
A CRM is responsible for managing risk within an organization. This includes assessing and mitigating risks, as well as recommending solutions.
A CRM must have specific education that includes courses in law, finance, economics, and business. A bachelor's degree is typically required, but some employers may require a master's degree.
The certification process involves completing an application, passing a background check, and sitting for an exam. The exam consists of multiple-choice questions that are timed.
Some benefits of becoming a CRM include increased income and job security. CRMs also have opportunities for growth, as they are in high demand. They play an important role within organizations by helping to identify and mitigate risks.
The certification is valid for three years. It must be renewed by passing the exam again.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
