Risk Management Certifications

The Wall St. Journal features a story about Risk Management Certifications.

Risk Managers Get Certified

The article is in the Career/Education section of the paper.  What should be addressed are the real issues of risk management quality.

  • Is Risk Management still at a “craft” stage where experience is much more important than training or does it need to move to a profession stage where a comprehensive body of knowledge is needed to meet minimum standards for ERM performance?
  • Does it make any difference what the risk manager knows or does not know if there is not a sufficient governance system to assure that the organization takes advantage of the risk manager’s knowledge AND experience?
  • Does anyone know which knowledge needs to be imparted to risk managers?  Some of what has passed for best in class knowledge has turned out to be disasterously wrong.

These are all important questions that need to be answered.

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2 Comments on “Risk Management Certifications”

  1. Abdulkadir Says:

    I believe the core issue is the behavioral aspect of this notion of ERM or risk management per se. Enterprises are entrenched deep into a culture of greed and illusion that negates any potential value of effective ERM program. Playing with spreadsheets and VaR imaginary parameter, the game setting enterprise risk appetite is completely out of sync with the nature of the entity’s environment. It is fantastic bust and free pass lessons to those who want to solidify their risk management skills in these disastrous global financial systems. So, the question is can the behavior of the leaders of these enterprises (including their boards) change and re-tune or re-sync to the real world and not the imaginary world they have been living for such a long time!

  2. riskczar Says:

    I think that before we can define what a risk managemetn certification looks like, we need to define what risk management is and is not.

    Too many people in hiring positions are misinformed about who they need because they are misinformed about what their risk management organzation should look like.

    Someone could have an FRM and a CFA but if the hiring manager believes that what he calls risk management is nothing but internal audit to the rest of us, then he or she will want a CA or CPA. Your risk designation is useless.

    I’ve looked af those designations and they do not appeal to the sort of risk manager that I am and that we should aspire to be. Too much quant, too much insurance, too much Calculus and not enough change management or common sense.

    No thanks.


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