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Global Association of Risk Professionals

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Global Association of Risk Professionals (GARP) is a not-for-profit organization 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 Jersey City, New Jersey, with additional offices in London, Washington, D.C., Beijing, and Hong Kong.[3][4][5][6][7] GARP offers several foundational and certificate programs, the best known of which is the Financial Risk Manager (FRM) certification.

Global Association of Risk Professionals
AbbreviationGARP
Formation1996
FoundersMarc Lore
Lev Borodovsky
TypeNot-for-profit organization
PurposeRisk Management Education and Certification
HeadquartersJersey City, New Jersey
Coordinates40°43′34.62″N 74°2′1.43″W / 40.7262833°N 74.0337306°W / 40.7262833; -74.0337306
Region served
Worldwide
Membership
279,000 (2021)
Official language
English
Bradford Hu
Richard Apostolik
Revenue
Increase USD $56.78 million (2021)
ExpensesIncrease USD $47.56 million (2021)
Students
84,925 (2021, FRM and SCR registrations)
Websitewww.garp.org
[1][2]

GARP also runs initiatives such as the GARP Risk Institute (GRI) Archived 2021-07-09 at the Wayback Machine and GARP Benchmarking Initiative (GBI) Archived 2021-07-09 at the Wayback Machine for research and thought leadership efforts within the risk purview.

History

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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.[8]

In 1997, a year after they founded GARP, Lore and Borodovsky introduced the Financial Risk Manager (FRM) certification.[8]

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.[9]

Financial Risk Manager (FRM)

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The Financial Risk Manager (FRM) is a Master's degree equivalent[10] 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. [11] [12] [13] FRMs possess specialized knowledge in assessing and managing risk, and typically work for major banks, insurance companies, accounting firms, regulatory agencies, and asset management firms. Certificants are in more than 190 countries and territories worldwide,[14] 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. [15] [16] The curriculum incorporates the major strategic disciplines of risk management – market risk, credit risk, operational risk, and investment management – with requisite underlying knowledge.[17] The exams:[18][14]

  1. The tools used to assess financial risk: Foundations of Risk Management; Quantitative Analysis; Financial Markets and Products; Valuation and Risk Models.
  2. Application: Market Risk Measurement and Management; Credit Risk 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.[19][20] According to a January 2023 Press Release,[21] there are 77,000 FRMs around the world.

Other certificate programs

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GARP offers three role-based risk certifications – the Financial Risk Manager (FRM), the Energy Risk Professional (ERP), and the Sustainability and Climate Risk (SCR).[22] It also offers two foundational courses in risk management with its Foundations of Financial Risk and Financial Risk and Regulation programs.[23][24][25] The ERP certification was officially discontinued in 2021 due to transitions in the energy marketplace.[26]

Additional to these, it provides on-going education through its Continuing Professional Development programming.

See also

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References

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  1. ^ "Annual Report 2021". Annual Report 2021. Global Association of Risk Professionals. Archived from the original on 2 October 2022. Retrieved 2 October 2022.
  2. ^ "Bradford Hu, Chief Risk Officer". About Citi. Citigroup, Inc. Archived from the original on 12 August 2020. Retrieved 25 October 2020.
  3. ^ Nitschke, Lori. "GARP to Postpone May Exams Due to Uncertainty Surrounding COVID-19". Business Wire. Archived from the original on 30 November 2021. Retrieved 12 October 2020.
  4. ^ Donohue, Christopher. "Global Association of Risk Professionals" (PDF). DePaul University Finance Department. Archived (PDF) from the original on 30 November 2021. Retrieved 15 October 2020.
  5. ^ Lore, Marc; Borodovsky, Lev (4 April 2000). Professional's Handbook of Financial Risk Management. Butterworth-Heinemann. p. 14. ISBN 978-0750641111. Retrieved 15 October 2020.
  6. ^ "Global Association of Risk Professionals Inc". Bloomberg. Bloomberg Inc. Archived from the original on 30 November 2021. Retrieved 16 October 2020.
  7. ^ "SAS, GARP survey: 81 percent of risk professionals already seeing value of AI". SAS. SAS Institute Inc. Archived from the original on 24 January 2021. Retrieved 25 October 2020.
  8. ^ a b "GARP Scandal: Global Association of Risk Professionals". 9 September 2012. Archived from the original on 9 September 2012.
  9. ^ "Nov/Dec 03 Issue 15" Archived 2011-07-10 at the Wayback Machine p. 1 (of 48 imaged), eraider.com, 20/11/03. ©2003 Global Association of Risk Professionals; Google search-result title 'Risk Review - Aaron Brown' (Brown, a name on the masthead, p.1). Retrieved 2024-01-29.
  10. ^ "FRM Exam: Our Epic Financial Risk Manager Guide - 300Hours". 300hours.com. Archived from the original on 2022-08-11. Retrieved 2021-10-23.
  11. ^ Biktimirov, Ernest. "Global Alphabet Soup: Internationally Recognized Professional Designations in Finance". SSRN. Brock University. SSRN 2345545. Archived from the original on 16 May 2022. Retrieved 5 November 2020.
  12. ^ Orr, Leanna (17 March 2017). "The Rise of the Chief Risk Officer". Institutional Investor. Institutional Investor LLC. Archived from the original on 30 November 2021. Retrieved 5 November 2020.
  13. ^ Greenfield, Jeremy. "Risk Managers Get Certified". WSJ. Wall Street Journal. Archived from the original on 30 November 2021. Retrieved 5 November 2020.
  14. ^ a b Official Candidate Guide, http://storage.pardot.com/39542/121486/FRM_2017_CandidateGuide_V8.2_AG.pdf[permanent dead link‍]
  15. ^ Reed, Eric (17 September 2019). "What Does A Financial Risk Manager Do?". Yahoo. Yahoo Finance. Archived from the original on 30 November 2021. Retrieved 16 October 2020.
  16. ^ "Financial Risk Manager (FRM)". FINRA. Financial Industry Regulatory Authority. Archived from the original on 30 November 2021. Retrieved 25 October 2020.
  17. ^ Chen, James. "Financial Risk Manager (FRM)". Corporate Finance & Accounting. Investopedia. Archived from the original on 27 September 2020. Retrieved 12 October 2020.
  18. ^ GARP Buy Side Risk Managers Forum –Risk Principles for Asset Managers(2015.6.11) http://www.ermsymposium.org/2015/presentations/C-19.pdf Archived 2016-08-11 at the Wayback Machine
  19. ^ "HKUST Enters into Partnership with the Global Association of Risk Professionals". The Hong Kong University of Science and Technology. Retrieved 25 October 2020.
  20. ^ "Financial Risk Management". Schulich School of Business. The Schulich School of Business, York University. Archived from the original on 21 October 2020. Retrieved 25 October 2020.
  21. ^ "Archived copy" (PDF). Archived (PDF) from the original on 2023-01-29. Retrieved 2023-04-25.{{cite web}}: CS1 maint: archived copy as title (link)
  22. ^ "Introducing GARP's SCR Certification: A Handy Guide - 300Hours". 300hours.com. Archived from the original on 2022-01-18. Retrieved 2021-10-23.
  23. ^ "2019 Annual Report". Annual Report 2019. Global Association of Risk Professionals. Archived from the original on 29 May 2022. Retrieved 12 October 2020.
  24. ^ Porter, Tony; Heather, McKeen-Edwards (11 February 2013). Transnational Financial Associations and the Governance of Global Finance: Assembling Wealth and Power. Routledge. p. 71. ISBN 9780415659741. Retrieved 16 October 2020.
  25. ^ Philippe, Jorion (9 November 2006). Value at Risk: The New Benchmark for Managing Financial Risk (3rd ed.). McGraw Hill Professional. p. 43. ISBN 9780071736923. Retrieved 16 October 2020.
  26. ^ "GARP Announces Market-Driven Changes To Its Energy Offerings". Business Wire. Business Wire, Inc. Archived from the original on 30 November 2021. Retrieved 19 August 2021.
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