Global Association of Risk Professionals (GARP) is a
not-for-profit organization
A not-for-profit or non-for-profit organization (NFPO) is a Legal Entity, legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives.
While not-for-profit organizations and Nonprofit organ ...
and a membership association for risk managers. Its services include setting standards, training, education, industry networking, and promoting risk management practices. Founded in 1996 and headquartered in
, with additional offices in
London
London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
,
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and federal district of the United States. The city is on the Potomac River, across from Virginia, and shares land borders with ...
,
Beijing
Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...
, and
Hong Kong
Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
. GARP offers several
foundational and certificate programs, the best known of which is the ''Financial Risk Manager (FRM)'' certification.
GARP also runs initiatives such as th
GARP Risk Institute (GRI) an
GARP Benchmarking Initiative (GBI) for research and thought leadership efforts within the risk purview.
History
GARP was founded in 1996 by
Marc Lore and Lev Borodovsky, two risk managers. They had been meeting once a week at a New York pub to talk about their chosen field with other risk colleagues and decided that a more formal organization would benefit other risk professionals. About six months later, they had 250 members from 23 countries. Before long, local chapters from around the world had been established by regional directors, offering programs for local members.
In 1997, a year after they founded GARP, Lore and Borodovsky introduced the Financial Risk Manager (FRM) certification.
According to GARP, as of 2021, it has 279,000 members in more than 195 countries and regions.
In the early 2000s GARP published ''GARP Risk Review'' distributed by subscription to members six times a year.
Financial Risk Manager (FRM)
The Financial Risk Manager (FRM) is a Master's degree equivalent
professional designation issued by GARP.
The FRM is well regarded, one of the flagship certifications for financial risk professionals, along with the PRM offered by the
Professional Risk Managers' International Association.
FRMs possess specialized knowledge in assessing and managing risk, and typically work for major
banks,
insurance companies
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...
,
accounting firms,
regulatory agencies, and
asset management firms.
Certificants are in more than 190 countries and territories worldwide,
[Official Candidate Guide, http://storage.pardot.com/39542/121486/FRM_2017_CandidateGuide_V8.2_AG.pdf] and have taken an average of two years to earn their Certification.
Candidates must pass two FRM exams and attain 2 years of relevant practical work experiences prior to being certified.
The curriculum incorporates the major strategic disciplines of risk management –
market risk
Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility.
There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the m ...
,
credit risk
Credit risk is the chance that a borrower does not repay a loan
In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay ...
,
operational risk
Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt business operations. Employee errors, criminal activity such as fraud, and physical events are among the factors that can tri ...
, and
investment management
Investment management (sometimes referred to more generally as financial asset management) is the professional asset management of various Security (finance), securities, including shareholdings, Bond (finance), bonds, and other assets, such as r ...
– with requisite underlying knowledge. The exams:
[GARP Buy Side Risk Managers Forum –Risk Principles for Asset Managers(2015.6.11) http://www.ermsymposium.org/2015/presentations/C-19.pdf ]
#The tools used to assess financial risk: Foundations of Risk Management;
Quantitative Analysis; Financial Markets and Products; Valuation and Risk Models.
#Application:
Market Risk
Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility.
There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the m ...
Measurement and Management;
Credit Risk
Credit risk is the chance that a borrower does not repay a loan
In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay ...
Measurement and Management;
Operational- and
Integrated Risk Management; Risk Management
and Investment Management; Current Issues in Financial Markets.
The FRM curriculum is incorporated into several "partner university" programs and syllabi. According to a January 2023 Press Release, there are 77,000 FRMs around the world.
Other certificate programs
GARP offers three role-based risk certifications – the ''Financial Risk Manager (FRM)'', the ''Sustainability and Climate Risk'' (SCR) certification, and the Risk and AI (RAI) certificate.
It also offers two foundational courses in risk management with its ''Foundations of Financial Risk'' and ''Financial Risk and Regulation'' programs. The Energy Risk Professional (ERP) certification was officially discontinued in 2021 due to transitions in the energy marketplace.
Additional to these, it provides on-going education through its
Continuing Professional Development
Professional development, also known as professional education, is learning that leads to or emphasizes education in a specific professional career field or builds practical job applicable skills emphasizing praxis in addition to the transferab ...
programming.
See also
*
Professional Risk Managers' International Association
*
Financial risk management
Financial risk management is the practice of protecting Value (economics), economic value in a business, firm by managing exposure to financial risk - principally credit risk and market risk, with more specific variants as listed aside - as well ...
*
Institute of Risk Management
*
Professional certification
Professional certification, trade certification, or professional designation, often called simply ''certification'' or ''qualification'', is a designation earned by a person to assure qualification to perform a job or task. Not all certifications ...
*
Risk and Insurance Management Society
*
American Risk and Insurance Association
*
Association of Insurance and Risk Managers in Industry and Commerce
References
External links
*
{{Authority control
Risk management in business
International professional associations
Non-profit organizations based in New Jersey
Business and finance professional associations
Organizations established in 1996
Jersey City, New Jersey