PROFESSIONAL

RISK
MANAGER
(PRM ) DESIGNATION
TM

The Industry Standard

for Professional
Risk Practitioners

CANDIDATE
GUIDEBOOK
 Today’s risk
About the Professional
professionals are Risk Manager (PRM™)
expected to know and
understand industry
Designation Program
best practices and be
committed to using
them. There is no better
T he Professional Risk Manager (PRM) Designation is a globally
recognized, graduate-level risk management credential.

way for risk managers to The PRMIA PRM Designation Built by a broad coalition of
show their commitment consists of two exams, industry leaders to reflect
than by proving they designed to recognize the the mission objectives of the
competencies of professional association and to establish
have the knowledge,
risk managers and awarded the leading form of education,
skills, and qualifications
to individuals with proven validation, and certification
to back their experience. knowledge and skills in in the risk management
financial risk management. profession, the PRM includes
candidates and current Holders
Endorsed by leading university
from over 110 countries.
programs and industry firms,
it is the global standard for risk
management professionals.

“ We are “of the risk professional, by the risk

professional, and for the risk professional.”

1
Holders of the Professional Risk Manager Designation have
demonstrated their knowledge and skills related to:
What does having
n Risk management best practices and the finance theory PRM after my name
underpinning risk management
do for me?
n Financial instruments and their associated risks and uses

n The roles, features, and processes within the various Along with the
financial markets accomplishment of
passing the exam
n Mathematical foundations of risk measurement
comes the ability to set
n Risk management frameworks and operational risk best practices
yourself apart in the
n The classic credit risk lifecycle, products, and methodologies industry. PRM certified
n Counterparty risk management (CVA, DVA, XVA) elements professionals have many
more opportunities in
n The foundations of market risk
the competitive job
n The foundations and complexities of asset liability management
market than those who
n The foundations of liquidity risk do not hold the PRM.
n Latest developments in areas like machine learning, ESG, Businesses recognize
compliance, and virtual assets the importance of the
n Lessons learned from failed systems and practices and major skill sets proven by the
risk events PRM Designation, and
n Best practices of governance, conduct, and ethics many more are requiring
the credential in their
higher-level positions.

2
 Who holds the PRM? IS THIS THE RIGHT CERTIFICATION
FOR YOU?
PRM Holders have shown
their competence in Choosing a professional certification is a personal one that depends
on professional goals, current knowledge or skill level, and how well
risk management tools,
that credential will aid one’s career path.
techniques, theories, and
principles. It is intended When considering the Professional Risk Manager Designation, one
for Financial Analysts, could consider the following:

Risk Managers, Chief n Do I meet the experience requirements

Risk Officers, and Chief
• If I don’t currently meet the experience requirements,
Executive Officers. or the alternatives, will I meet them soon?

Current PRM certified n Am I knowledgeable of the topics shown in the PRM syllabus?
professionals include n Is the program a global certification recognized in the regions
staff from large banks where I work?
and corporations,
n Does my employer or potential employer recognize the
universities, government
importance of continued education through the study for a
agencies, and other non-
professional certification?
financial organizations.
Organizations If answers to these questions are favorable and evidence exists for
represented include Ernst meeting the current requirements, continue on for information
about applying.
& Young (EY), Credit
Suisse, HSBC, ING, First
Derivatives, Deloitte,
KPMG, UBS, Scotiabank,
PWC and National Bank
of Canada. REFUND POLICY
The PRM application and program fees are not refundable or
transferable. The information provided in this guidebook and online
is intended to ensure candidates who apply for the PRM program are
well informed about its requirements and fees before applying. For
Access PRMIA more information, visit the PRMIA Terms of Use.
Certifications
Public Directory
for a list of PRM
Designation
Holders.

3
 Many of your questions
can be answered by
this PRM Candidate
Guidebook. However, as
a quick reference, some
of the more commonly
asked questions from
exam candidates can
be found on the online
FAQs page.

How to Use this Candidate Guidebook

T
he purpose of this Professional Risk Manager (PRM™) Designation Candidate Guidebook
is to ensure future and current candidates have the information needed to pursue the PRM
professional certification.

Future Candidates — Those individuals who have Current PRM Designation Holders — You pay
not yet applied for certification may find important your annual Sustaining member fees to maintain
and detailed information regarding the PRM your Holder status. You are officially recognized as
Designation to determine whether it is appropriate a PRM Holder and can use the PRM Designation
for their career path. professionally (on your CV, business cards, and
LinkedIn). You remain connected to PRMIA’s
Applicant — an individual who has submitted global network and can access risk management
an application and paid the application fee, or an resources in the members’ sections of our website.
individual who has an approved application but
has not yet paid the PRM program fee. Retired — a PRM certified user that has been
certified as ‘retired’ in their professional career
Current Candidates — Those who have applied and holds Sustaining membership. For instructions
for and are taking the examinations should refer to on how to retire the PRM Holder status, contact
this Candidate Guidebook to aid their path to the certification@[Link].
PRM Designation. This status continues until all
required examinations are successfully taken. Be sure to read this entire document. It contains
important information that will help you be a
Qualified — You have successfully completed
successful Candidate.
the PRM 1 and PRM 2 exams (or equivalent
pathways). This status is yours for life—you We hope you will join us in promoting the PRM
will always be recognized as PRM Qualified. program as the standard for the risk management
However, you cannot use the PRM Designation industry. Invite your peers to learn more about
professionally (on your CV, business cards, or the PRM by sharing the link [Link]
LinkedIn) or be included in the PRM Holder list. PRM in your social media profiles.

4
 Contents

About the Professional Risk Manager (PRM™) Designation Program . . . 1

How to Use this Candidate Guidebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Program Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

PRM Exam Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

PRM Syllabus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

PRM Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Experience Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Paths to the PRMTM Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Exam Logistics: Application, Preparation, and Testing . . . . . . . . . . . . . . . . 15

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1

© 2025 Professional Risk Managers’ International Association (PRMIA)

All rights reserved. Revised 2015, 2016, 2017, 2018, 2019, 2022, 2024, 2025

5
Program Design

T
he Professional Risk Manager Designation program was developed
under the guidance of the PRMIA Education Committee and with input
from current and future Professional Risk Managers around the globe.
Its subject matter is based on relevant, readily available sources of literature
on the specific subjects within its syllabus.

Specifically, the program has been designed with four of the PRMIA Mission objectives in mind:

1 2
To be a leader of To drive the integration of practice and theory, and
industry opinion and certify the credentials of those in our profession
a proponent for the
risk management Neither theory nor practice will successfully develop
profession to their potential without a strong interaction among
professionals in each area. The Professional Risk
By setting the higher Manager program contains subject matter drawn from
standard in risk risk management theory, finance theory, the math
certification, we create underpinning risk measurement, and applied practices
standards of practice of our profession.
and accountability
We directly assess knowledge of finance and basic
that will define what
math. Such knowledge is essential for risk managers,
Professional Risk
as it forms the foundation of risk measurement
Managers represent
and management.
to their colleagues and
employers. We assess practical knowledge about markets: trading
practices, intermediaries, settlement, and other
conventions in specific markets. These market choices
will reflect the most global of markets as well as some
more narrowly defined markets, with the latter giving
us the opportunity to expose people to markets in
which they may not normally be active.

The PRM Designation program includes an assessment of the application of

important risk management lessons from the PRMIA Case Studies. Narratives of
historical incidents where critical risk management issues have arisen give us the
opportunity to conduct a pathology of events from around the globe and to assess
members’ understanding of the cases’ root causes. Access the PRMIA Case Studies
assessed as part of the PRM Designation Program from [Link]/PRM.

6
 3 To be global in our focus, promoting cross-
cultural ethical standards, serving emerging
as well as more developed markets

The content of the PRM program is designed

to be geographically neutral. Specific sections
4 To be transparent, nonprofit,
independent, member-focused,
and member-driven

PRMIA is a non-profit professional

association under the full control of its
focusing on “markets” are designed so that a members. It does not have for-profit
variety of markets and market lessons subsidiaries that may financially benefit
are studied. individuals. The PRMIA Bylaws provide
strong protection for member rights
The PRMIA Standards of Best Practice, and the assets of the membership.
Conduct, and Ethics (Code of Conduct) We are “of the risk professional, by
represent the standards of behavior that the risk professional, and for the risk
Professional Risk Managers promise to professional.”
their colleagues and employers. It has been
written to cut across geographic and cultural
boundaries. All Professional Risk Managers
will be required to study the Code for the
program and adhere to it to stay in good “ The PRM Designation has
a cutting-edge curriculum
standing as a certified PRM.
that provides for the most
The PRMIA Governance Principles delineate effective path to Professional

”
seven key principles to best practices of Risk Manager success.
corporate governance, all gleaned from
governance documents developed by — J O H N PA U L B R O U S S A R D ,
leading public and private entities from PHD, PRM
around the world.

7
PRM Exam Structure

T
he purpose of the PRM examinations is to assess the current knowledge and
skill levels for financial risk managers to determine competency against the PRM
Designation syllabus domain areas in relation to the global standards expected of
a professional risk manager. Knowledge and skills are assessed by multiple-choice test
questions that make up each examination.

The PRM exam program includes two required examinations.

The PRM Exam 1 assesses knowledge of the domains related to finance theory,
instruments, markets, and the application of mathematical foundations of risk
measurement.

The PRM Exam 2 assesses the knowledge of the domains related to risk management
frameworks, asset liability management, funds transfer pricing, the specific risk areas
of operational risk, credit risk, counterparty credit risk, and market risk, as well as the
PRMIA Standards and Governance.

The PRM Exam 2 includes a Practicum Assessment that assesses the ability to apply
lessons learned from the PRMIA case studies using knowledge from across the PRM
syllabus. It is for this reason that the graphic below shows Exam 2 assessing all areas of
the PRM syllabus as some test questions that assess a case study may also assess the
application of knowledge from the domains of finance theory, instruments, or markets,
as well as some of the mathematical foundations of risk management.

8
 PRM TEST SPECIFICATIONS

In an effort to ensure PRM candidates can prepare for their studies, the following tables
provide the specific test specifications that are used to develop each exam form.

The exams include 100% multiple choice test questions with four options, where only
one option is the intended correct answer.

The PRM Exam 1 consists of 60 stand-alone test questions.

The PRM Exam 2 consists of 64 stand-alone test questions and a practicum portion
that includes four scenarios each followed by five related test questions, bringing the
total number of test questions to 84.

Domains Assessed Number of Number of Proportion

Stand-Alone Practicum-Based Across Both
Test Questions1 Test Questions2 Exams

PRM Exam 1 PRM Exam 2

I. Finance Theory 15 0–2 12%

II. Financial Instruments 15 0–2 10%

III. Financial Markets 15 0–2 11%

IV. Mathematical Foundations of

15 0–2 9%
Risk Measurement

V. Enterprise Risk Management Frameworks 20

& Operational Risk Management Practices

VI. Credit Risk and Counterparty Credit Risk 20 4–7 15%

VII. Market Risk, Asset Liability Management,

20 4–7 13%
and Funds Transfer Pricing

VIII. Case Study Practicum3 0 204 12%

IX. PRMIA Standards and Governance 4 0 2%

TOTAL 60 84 100%

1
Stand-alone test questions are questions intended to be answered based on the information provided in the question’s stem or prompt.
The answer to the question will refer only to the content provided in that specific question.

2
Practicum-based test questions are questions intended to be answered based on the information provided in the scenario that precedes the question.
The question’s stem or prompt may require additional information to be identified from the provided scenario in order to answer the question.

3
The Case Study Practicum portion of PRM exam 2 includes test questions that assess the application of knowledge from domains I through VII.
Due to the nature of the practical application of the lessons learned from the case studies, different skill sets and knowledge will be assessed with each
practicum. As a result, each exam form may contain different sets of test questions assessing these areas.

4
The Case Study Practicum includes 4 sets of 5 test questions, to make up the 20 total test questions that assess application of the lessons learned from the PRMIA
Case Studies. Each set of test questions may include between 0-2 questions related to domains I-IV, and will include between 4–7 questions related to domains V-VII.
9
PRM Syllabus

T
he Professional Risk Manager (PRM) syllabus includes a comprehensive set of
knowledge and skills expected of a competent financial risk manager.

The subject matter of the PRM program is broken down broadly among nine major
domain areas. The current knowledge and skill level of a Professional Risk Manager is
assessed using examinations that include multiple choice test questions.

PRM Handbook Title PRM Syllabus Domains

Foundational Theories, Instruments and Markets I. Financial Theory

for Risk Management II. Financial Instruments
III. Financial Markets

Mathematical Foundations of Risk Management IV. Mathematical Foundations of Risk Measurement

Risk Management Frameworks and Practices for V. Enterprise Risk Management Frameworks and
Enterprise and Operational Risk Management Operational Risk Management Practices

Practices for Credit and Counterparty

VI. Credit Risk and Counterparty Credit Risk
Credit Risk Management

Risk Management Frameworks and Practices for VII. Market Risk, Asset Liability Management
Market Risk & Asset Liability Management and Funds Transfer Pricing

10
 DIGITAL RESOURCES
To support the use and study from the PRM Handbook, additional digital resources
are available to candidates. These resources are referenced within the text of the
Handbook and are freely available on the PRMIA website.

RISK MANAGEMENT IN PRACTICE

Practicing risk managers may feel more prepared for the exams by going to work
each day where they interact with other professionals, read industry magazines,
software manuals, company policies and procedures, academic journals, websites and
regulatory notices. Current professionals attend risk committee meetings, prepare risk
reports, give presentations, and write papers.

Many of these work-related activities may already prepare them for taking the PRM
exams. Candidates who want to gauge their current knowledge level against the PRM
syllabus may take a moment to self-assess by utilizing the PRM Designation Skills
Self-Assessment tool.

PRMIA CHAPTER EVENTS

PRMIA has regional chapters around the world that host regular meetings on
current risk management topics.

The speakers are leading industry figures from banks, exchanges, regulators,
academia, consultants, vendors, asset managers, etc. The meetings are open to all
PRMIA members and constitute an excellent opportunity for professionals to stay
informed of the latest developments in risk management and measurement.

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PRM Requirements
The PRM Designation program consists of three core requirement areas:

1. Experience Requirements
2. Examination Requirements
3. Maintain a Sustaining membership. Continued Learning credits are
recommended but not required.*

The purpose and scope of each are described in detail in the following sections.

*Examination requirements must be fulfilled within a two-year period. Individuals have two
options to maintain their Holder status:

Option 1: Pay an annual Sustaining membership fee.

Option 2: Pay the annual Sustaining membership fee and submit 20 Continued Risk Learning
credits each year to your member record. Choosing this option will result in a reduced
membership fee and a badge listing the year for maintaining the designation.

ENROLLMENT PERIOD
The PRM enrollment period begins with the date of the PRM application submission.

While some PRM candidates are ready to sit for their exams with little study, the two year
enrollment period has been set to allow for some study before each of the exams are attempted.

It is expected that the application process may take between 15-30 days, with a vast majority
of applications reviewed and verified (approved) within two weeks of initial submission. A
few applications require additional documentation or additional time to receive and verify the
evidence, causing the review to take up to 60 days.

Upon being approved by application process, within several days, PRM applicants are sent the
details on the fee for their study material and exam authorization. PRM applicants are expected
to complete this part of the process within 90 days of making their PRM application submission.

Discounts are available for Sustaining and Corporate members of PRMIA as well as those who
wish to purchase both exams at once.

Both exams are to be completed THREE MONTHS YEAR 1 YEAR 2

within two years of this point of
the process. Extensions to exam Application
authorization may be purchased
via [Link]. First Exam

Second Exam

12
 Experience Requirements
Individuals applying to the PRM Program must provide evidence of meeting the
following requirements:

1. Graduate school (i.e. MBA, MSF, MQF etc.) or current CFA Charter Holder,
CIIA Holder, FRM Holder, OR
2. Bachelor’s degree with two years full-time work experience, OR
3. Four years full-time work experience.

Any work experience submitted must be associated with the financial services industries
(including regulatory or rating industries), or in the risk management department of any
industry. Documentation of experience will be required upon applying for the PRM program.

Are you a student or a recent graduate? Students currently enrolled in a degree program and
graduates who have recently completed an undergraduate degree program are eligible to take
the PRM examinations as part of a special PRM for students program. They can then apply to
the PRM Designation program when they are eligible, meet any remaining PRM requirements
necessary, and become a PRM Designation Holder. This can be combined with the exemptions
for accredited universities. Details can be found on the PRM for Students page.

Cross-over exemptions: CFA, CIIA, and FRM

PRMIA members who currently hold a CFA, CIIA, or FRM are eligible for exemptions for PRM
Designation examinations as shown in the table. The CFA charterholder and FRM status also
provide evidence that applicants meet the PRM experience requirements (master’s degree or
equivalent) as long as the CFA or FRM status are current.
New PRM Applicants
If individuals are eligible for a PRM Exam Exemption, they only pay for an application to
confirm their eligibility / exemption and then the exam fee for the exam they must complete.
On paying the exam fee, they will be provided with the appropriate PRM Handbooks and
Exam Authorization.

PRM Program
Program Awarding Organization Exemptions

Chartered Financial Analyst (CFA) CFA Institute Exam 1, Experience

CIIA charter holder Association of Certified International

Exam 1, Experience
Investment Analysts (ACIIA)

Financial Risk Manager (FRM) Global Association of Risk Professionals (GARP) Exam 1, Experience

PRMIA Accredited
Participating Universities Exam 1
University Program

13
Paths to the PRMTM Certification
A flexible way to earn your designation
Traditionally, to earn the PRM candidates must complete two exams —
PRM 1 and PRM 2 — along with meeting other requirements.

The Paths to the PRM™ initiative introduces more flexibility in how candidates
complete the PRM 2 requirement.

Candidates can now choose between: Taking both PRM Exams 1 and 2 OR Taking
Exam 1 and being exempt from Exam 2 by taking advantage of one of the three
available exemption options.

Option 1 Exam Exemption:

Completing three specialized certificates
• Operational Risk Management Certificate Holder;
• Credit and Counterparty Risk Management Certificate Holder; and
• Market, Liquidity and Asset Liability Risk Management Certificate Holder.

Option 2 Exam Exemption:

Cross-over qualifications
The Fast-Track Exemption Program allows CFA, CIIA, and FRM certification
holders to bypass the application process and the PRM 1 exam, which is already
covered by their existing credentials. This streamlined process will require them to
complete only the PRM 2 exam. They will be required to provide their CFA, CIIA, or
FRM certification indentifier for verification before final approval.

Option 3 Exam Exemption:

PRMIA Risk Accreditation Program ­— Accredited University Programs
Visit the PRMIA Risk Holder Accreditation Program website to view the current
list of PRMIA accredited risk programs.

Visit us online to learn more about paths to the PRMTM.

14
 Exam Logistics: Application, Preparation, & Testing
APPLICATION

Potential PRM candidates must first apply to PRMIA by visiting [Link]

PRM Designation Candidates are required to submit verifiable evidence of meeting the minimum
experience requirements online as part of the application.

The application review process will occur within two weeks of application submission provided the
application fee is paid. For applications with missing or incomplete information, the review process
may take longer. In some cases, responses from references for verification may delay the application
review process. In these instances, candidates are notified of the status of the application.

Refer to the PRM Frequently Asked Questions for details on the application process and the
required documentation.

PROFILE DETAILS FOR PRMIA

It is critical that a complete PRMIA profile be provided when applying for the PRM certification or any
certificate program.

PRMIA uses the following details when reviewing the application and also when sending pre-approval
for any exam authorizations to Pearson VUE for testing purposes.
n Name as it appears on identification card
n Full preferred mailing address
n Phone number with country (or country code)

Information on PRMIA Data Privacy may be found in the Terms of Use.

PROGRAM FEES

Individuals with an approved application are required to indicate their readiness to begin the study process
by paying the PRM program fee within 90 days of the date the application was submitted to PRMIA.

Instructions on how to pay the fee are included in the application approval email. Bundles are
available to allow both exams to be bought at a discount.

Within 2-3 business days of paying the program fee, authorization to take the required examinations
will be submitted to Pearson VUE, and instructions on how to schedule the exams and access to the
digital PRM Handbook will be sent via email to the PRM candidate.

PRMIA has contracted with Pearson VUE to administer the PRM examinations at its test centers
around the globe or online via their Remote Proctored exam solution. Follow the instructions in the
email to create an account with Pearson VUE.

15
PROFILE DETAILS FOR PEARSON VUE

Once a candidate receives an email notification from PRMIA that their exam
authorization has been submitted to Pearson VUE, they will receive another email
within 24 hours from Pearson VUE to confirm their account is ready.

New candidates will receive a second email with a username and temporary
password to log in to [Link]

SCHEDULING EXAMS
The PRM exams are administered in a proctored environment at Pearson VUE
facilities around the globe or online via their Remote Proctored exam solution.

Candidates schedule an examination by creating an account with Pearson VUE

or logging in to their existing account to view pre-approved exams at
[Link]/prmia.

Exams are offered four times per year during specific testing windows. These testing
intervals allow for consistent opportunities to complete the PRM exams within the
required two-year period. Current exam schedules can be found on the PRMIA website
and also on the Pearson VUE scheduling page.

Candidates are encouraged to review the important details about registration,

cancellation, identification requirements and space availability. The current testing
schedule on the PRMIA website shows when the scheduling and testing windows open.

***Quebec Language Project - PRMIA exams will not be offered at the testing centers
or remotely in Quebec. Due to the Quebec Lanaguage Project, all materials and exams
are required to be offered in French. PRMIA is not able to offer the exam options in
French at this time. Candidates will need to travel outside of Quebec to sit for their exams.

CANCELING OR RESCHEDULING

In recognition of the busy and changing schedules of risk managers, candidates may
change their exam appointment without charge through the Pearson VUE system at
[Link]/prmia.

All change requests must be made with Pearson VUE at least one business day
before the testing date or the entire exam fee will be forfeited.

All authorized exams have an expiration date. An email from Pearson VUE with the
subject line “Authorization to Test” specifies the authorized dates. This email also
provides important information about scheduling, canceling, and rescheduling exams.
It is crucial to keep this email for your records.

All program and exam fees are final and non-refundable.

16
 PRM EXAMS — TEST LENGTH AND TESTING TIME

The testing time limits established for the PRM examination is set to ensure sufficient
time for all candidates to complete the exams.

Exam Title Test Length (number of test questions) Testing Time Limit
Exam 1 60 questions 4 hours

Exam 2 84 questions 4 hours

Candidates who need additional time or specific test environment accommodations

due to medical or other accommodation needs may contact certification@[Link]
with details of the specific accommodations required. A staff member will review
the request and work with Pearson VUE to determine how best to meet the
accommodation requirements.

EXAM PLATFORM

Whether completed at a test center or via a remotely proctored exam, the PRM exam
is computer-based, and questions are all multiple choice with four options, and one
option is the correct answer.

CALCULATORS
For the portions of the exam that allow calculators to be used, the platform provides an
online scientific calculator, the Texas Instrument TI–30XS. This calculator is part of the
test delivery system.

A user guide for the calculator can be found on the Texas Instruments
Guidebooks page.

Candidates may also choose to purchase the hand-held version (TI-30XS) to

familiarize themselves with the calculator. However, personal calculators are not
allowed into the testing room.

No other materials may be brought into the exam room.

EXAM LANGUAGE
The PRM exams are offered in the English language only.

17
CHECKING IN FOR AN EXAM APPOINTMENT
On the date of the appointment, candidates should arrive at the testing center at least
15 minutes before the scheduled start time. If using the remote proctored service,
please log in 30 minutes before your scheduled exam time.

PRM candidates must meet the Pearson VUE Global ID Policy. A link to this policy can
be found at [Link]

EXAM SECURITY
Whether taken in an exam center or remotely, the PRM exams are conducted under secure
conditions. Any attempt by candidates to copy questions, by any means including organized
memorizing, and to distribute these questions to other individuals, will be treated as unethical
behavior and may result in penalties against the candidate, which could include forfeiture of
any PRMIA certificates, exam authorizations, and possible expulsion from PRMIA. Incitement
to copy and usage of copied questions may also result in the same penalties.

TAKING THE EXAMS

PRM candidates have two years to pass all required exams of the PRM Designation. The two-
year period commences from the date of the first successful PRM examination. Candidates
may take exams over more than a two-year period, but any exams older than two years will
need to be retaken.
n Candidates may only sit for the same exam once every 60 days.
n The exams are computer-based.
n Candidates will not receive any copies of the questions.
No paper may be brought into the testing center; however, candidates will be
n

provided with an erasable board upon request.

Examination Administration
Each testing center has an administrator who assists exam candidates with the testing
process.

Once admitted to the testing room, there will be a tutorial that introduces the functionality of
the exam and a brief message from PRMIA. After the tutorial has been viewed, the candidate
may begin the exam, which includes multiple-choice questions. Sufficient time is allocated to
read the tutorial and message and complete the exam.

The testing system allows marking and reviewing questions as long as time is remaining.
Candidates are encouraged to monitor and use their time effectively to ensure they respond to
all required test questions.

18
 EXAM RESULTS
PRMIA will post exam results to candidates’ PRMIA profiles no later than 15 business
days from the testing date. When available, candidates will receive an email from
certification@[Link] with instructions on how to access results.

RETAKING THE EXAMS

Candidates who do not pass an exam are eligible to retake the exam 60 days from the
date of the last exam. Individuals who require a retake will receive a notification from
PRMIA that they are eligible to retake the exam, with instructions for how to purchase
an exam retake.

Candidates may also contact support@[Link] or submit a Contact Us inquiry to

request the retake exam purchase link.

19
PRM Syllabus APPENDIX

Domain I to IV: PRM Exam I

I. FINANCE THEORY
A. Risk Theory
1. Describe the axioms and assumptions of utility theory with respect to
expected return and risk, and describe its application to the mean-variance
portfolio theory.
2. Calculate the Sharpe ratio and Jensen’s Alpha, and interpret the results.
3. Identify and describe risk adjusted performance measures, in particular
RAROC, RORAC, RARORAC, RoVaR, and the Treynor, Information, and
Omega ratios, and the Sortino and Kappa indices.

B. Portfolio Theory and Mathematics

1. Understand how diversification reduces risk and how serial correlation in
returns affects risk over time horizons.
2. Understand hedging and be able to apply this knowledge in an example
situation.

C. Asset Allocation
1. Relate mean-variance portfolio theory to asset allocation decisions, with
risky assets and a risk-free asset (e.g., asset correlation, efficient frontier,
market portfolio, capital allocation line, capital markets line, dominated
portfolio, and separation principal).

D. The CAPM and Multifactor Models

1. Outline the components of the capital asset pricing model (CAPM),
including the risk premium, systematic and idiosyncratic risk, beta,
securitymarket line, and its underlying assumptions.
2. Compare and contrast single-factor (e.g., CAPM) and multifactor models.
3. Compare and contrast the capital asset pricing model and the single-
index model.
4. Describe how arbitrage pricing theory can be used for decision-making.

E. Capital Structures
1. Outline the factors to be considered to determine the capital structure of
a firm, in particular the balance of debt to equity as well as agency costs,
taxes, and leverage.

F. The Term Structure of Interest Rates

1. Define the term structure of interest rates and demonstrate how to
construct a yield curve from observable bond pricing.

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 2. Describe the standard theories used to explain the observed shape of the
yield curve: a) pure expectations theory, b) liquidity preference theory, c)
preferred habitat theory, and d) market segmentation theory.
3. Understand the concepts of duration and convexity, and describe the impact
of an embedded call or put on the duration convexity and the
price of a bond.
4. Compare and contrast the Ho-Lee, Hull-White, and Black-Derman
Toy models.

II. FINANCIAL INSTRUMENTS

A. Bonds
1. Understand the characteristics of bonds, using concepts of duration,
convexity, and yield.
2. Price different types of bonds (e.g., zero coupon, fixed/floating, investment/
non-investment grade, etc.).

B. Forward and Futures Contracts

1. Understand the relationship between spot and forward prices.
2. Value a forward contract using concepts of interest differential and
delivery cost.
3. Understand the standardized characteristics of futures contract, for bonds,
stocks, currencies, and commodities.

C. Swaps
1. Understand the key components of a swap agreement and value a vanilla
interest rate swap.
2. Understand features of various types of swaps on instruments
(e.g., currencies, bonds, equities, commodities, assets, etc.).

D. Options
1. Identify and understand the components of option valuation.
2. Verify an option price using a given methodology (e.g., binomial models,
Black-Scholes-Merton, etc.).
3. Identify different option trading strategies.

E. Credit Derivatives
1. Apply the concepts of default probability and loss given default in
determining a credit default swap premium.
2. Understand different types of credit derivatives and securitized products.

F. Caps, Floors, and Swaptions

1. Understand caps, floors, and swaptions and their use in the markets.

G. Virtual Assets
1. Understand the underlying concepts of virtual assets.
2. Describe developments in virtual assets and related Instruments.

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III. FINANCIAL MARKETS
A. Participants in and the Structure of Financial Markets
1. Define and describe the various participants within financial markets (e.g.,
banks, brokers, front/middle/back office, underwriter, participants, etc.)
2. Discuss the structure of financial markets.
3. Distinguish between the various markets (e.g., bonds, FX, stocks, etc.),
trading systems (e.g., over-the-counter (OTC), ECN, “open cry”, etc.), and
settlement processes (e.g., straight-through).
4. Assess and analyze the capital structure of entities.

B. Bond Markets
1. Define and describe the characteristics of bond markets.
2. Interpret how an agency rating impacts the spread.

C. Money Market Securities

1. Define and describe money market securities (e.g., T-bills, CDs, CPs,
BA, etc.).
2. Discuss significant funding rates (e.g., Euro Interbank Offered Rate
(Euribor), London Interbank Offered Rate (LIBOR), Overnight Index
Swap (OIS), and Euro Over Night Index Average (EONIA).)
3. Calculate the bond equivalent yield of money market securities.

D. Stock Market
1. Define and describe the characteristics of stock markets.

E. Foreign Exchange Markets

1. Discuss foreign exchange markets (both spot and forward) and describe
various characteristics of these markets.
2. Calculate and interpret the cross rate given two FX rates.

F. Energy Markets
1. Define and describe the various elements of energy markets, including
emerging energy markets.

G. Commodities Markets
1. Define and describe the various elements of commodities markets and the
distinguishing features of these markets.

H. Futures Markets
1. Understand the the characteristics of derivatives exchanges on which
futures and trade.

I. Fintech Markets
1. Describe developments in the Fintech markets.

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 IV. MATHEMATICAL FOUNDATIONS OF RISK MEASUREMENT

A. Risk Management and Mathematics

1. Understand the Mathematics of Machine Learning.
2. Applying Simple Math to a Common Financial Issue: The Time Value
of Money.

B. Algebraic Methods
1. Solve equations using algebraic methods (e.g., linear and quadratic
equations).

C. Calculus Methods Related to Risk Management

1. Apply calculus methods (e.g., exponential and integration, approximation,
differentiation, stochastic, etc.) to risk management.

D. Basic Statistics Related to Risk Management

1. Compute and interpret basic statistical measures relating to risk
management (e.g., mean, standard deviation, kurtosis, correlation, etc.).
2. Understand the application of extreme value theory.

E. Numerical Methods
1. Discuss, calculate, and interpret various optimization and numerical
methods (e.g., LaGrange, Newton-Raphson, Monte Carlo simulation,
Multistate Markov model, etc.).

F. Matrix Algebra
1. Understand and apply matrix algebra as it relates to risk management (e.g.,
Cholesky decomposition, etc.).
2. Calculate and interpret principal components analysis (PCA).
3. Solve linear simultaneous equations using matrix algebra.

G. Probability Theory in Finance

1. Understand probability theory including Bayesian theory.
2. Calculate, apply, and interpret probability distributions (e.g., normal,
lognormal, Poisson, Copula, probit, and logit models).

H. Regression Analysis in Finance

1. Understand and interpret time series, simple, and multiple linear regression.
2. Apply confidence intervals and hypothesis testing.

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Domain V to IX: PRM Exam II
V. ENTERPRISE RISK MANAGEMENT FRAMEWORKS AND
OPERATIONAL RISK PRACTICES
A. Risk Governance
1. Understand key organizational roles and responsibility for risk decision-
making and challenges.
2. Describe the role of the risk function and leadership in ensuring the success
of the risk framework through the support of risk culture.
3. Evaluate the effectiveness of governance structures, including the role
of external stakeholders (regulators, auditors, shareholders, rating
agencies, etc.).

B. Risk Management Framework

1. Identify the key components of a risk framework including policies, appetite,
culture, limits, and thresholds.
2. Describe how a risk management framework supports an enterprise-wide
participation in risk management.
3. Differentiate between expected loss appetite versus tolerance and capacity
for stress losses.
4. Apply strategies for managing risk exposure.

C. Risk Assessment
1. Identify the key steps in a risk assessment lifecycle.
2. Categorize operational risk into its sub-components, including
causes and effects.
3. Understand different methodologies for measuring and quantifying
operational risks.

D. Risk Information
1. Evaluate relevant measures to identify and analyze loss experience.
2. Understand the key steps in a loss investigation.
3. Be able to identify, select, and implement appropriate key risk indicators
and articulate a risk profile.

E. Risk Capital and Operational Resilience

1. Evaluate the use of data in operational risk modeling.
2. Understand new developments in operational risk capital.
3. Understand developments in operational resilience.

F. Compliance Risk Framework

1. What is Compliance Risk Management?
2. Types of Compliance Risks
3. Enterprise Compliance Risk Controls

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 VI. CREDIT RISK AND COUNTERPARTY CREDIT RISK PRACTICES

A. Classic Credit Life Cycle

1. Describe the entire credit life cycle from origination to repayment.

B. Classic Credit Products

1. Describe credit markets and credit instruments.
2. Analyze and describe the credit risk taxonomy.

C. Classic Credit Risk Methodology

1. Analyze, compare, and contrast credit risk evaluation methodologies.

D. Counterparty Risk
1. Explain counterparty risk.
2. Measure counterparty exposure and interpret risk appetite.

E. Credit Derivatives and Securitization

1. Outline how credit derivatives and securitization are used as a funding risk
management tool.

F. Credit Portfolio Management

1. Recognize credit portfolio management goals and philosophy.
2. Define commonly used credit portfolio management metrics and describe
how these metrics are used in practice.

G. Valuation Adjustments (XVA)

1. Calculate and interpret various value adjustments (e.g., credit (CVA),
funding (FVA), debit (DVA), margin (MVA), etc.)
2. Describe right- and wrong-way risk, and the role of the central clearing
counterparties (CCPs).

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VII. MARKET RISK, ASSET LIABILITY MANAGEMENT AND
FUNDS TRANSFER PRICING PRACTICES

A. Asset Liability Management

1. Understand the framework and governance processes for managing liquidity
and funding risk.
2. Determine the efficiency of capital and funding sources, and the use of the
balance sheet.

B. Liquidity Risk
1. Understand and interpret the matching of asset and liability maturities.
2. Define and calculate liquidity indicators and ratios.
3. Identify the key components of liquidity assessment and contingency
funding plans.

C. Interest Rate Risk

1. Compare interest rate risk management for a trading book versus banking
book structures.
2. Calculate specific measures of interest rate risk at different points in the
yield curve.

D. Market Risk Management and Stress Testing

1. Identify the components of market risk policy, limit setting frameworks, and
how management action triggers are designed to work.
2. Define stress testing techniques for trading exposures (e.g., FX, interest
rate, equity commodity) with different levels of market liquidity.

E. Market Risk Monitoring

1. Compare and contrast different risk monitoring techniques (e.g., gross/net
exposure, concentration measure, value at risk (VaR), stress VaR, expected
shortfall, etc.)
2. Calculate a simple VaR measure.

F. Commodities Market Risk Management

1. Understand the risks related to commodities and how to mitigage them.

G. Balance Sheet Management

1. Understand the methods to manage several risks as part of overall balance
sheet management.

H. Bank Funds Transfer Pricing (FTP)

1. Understand funds transfer pricing (FTP) and how it can help mitigate risks.

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 VIII. CASE STUDY PRACTICUM

A. Risk Taxonomy
1. Interpret specific scenarios to identify areas of risks according to the PRMIA
risk taxonomy.

B. Historical Case Studies

1. Compare and contrast the scenario environment against case studies and
the lessons learned from those documented cases.
2. Examine the symptoms and causes from specific case studies and apply
these to the scenario.

IX. PRMIA STANDARDS AND GOVERNANCE

A. Group of Thirty Best Practices

1. Describe the Group of Thirty Best Practice recommendations and how
they may be applied in risk management.

B. PRMIA Governance Principles and Bylaws

1. Define the PRMIA Governance Principles and describe the application
of the principles.
2. Describe the PRMIA Bylaws.

C. PRMIA Code of Conduct and Ethics

1. Define and describe the PRMIA Professional Standards, Code of Conduct,
and Guidance on Ethical Behavior, and understand how these shall be
applied in professional practice.

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 PRM Candidate Guidebook — revised March 2025
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