Christopher Donohue, PhD Managing Director, Research and Educational Programs January 2014

FRM/ERP Recognition Ceremony The Benefits of Professional Certification

As the leading professional

association for risk managers,

GARP's mission is to advance

the risk profession through

education, training and the

promotion of best practices

globally.

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GARP’s Risk Management Certification Programs

• Financial Risk Manager (FRM®) program • Leading global professional designation program for risk management • Administered by GARP since 1997 • Program objective — assess an individual’s ability to measure and manage

risk in a real-world environment • FRM Committee comprised of senior risk managers and researchers

• Committee Chair: Prof. René Stulz, Ohio State University

• Energy Risk Professional (ERP®) program

• Launched in 2009 to address the growing importance of energy • Program objective — assess an individual’s ability to measure and manage

physical and financial risk in the energy industry • EOC Committee comprised of senior risk managers, commodity traders,

and quantitative analysts

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Growth and Global Acceptance of the FRM Program

• Annual growth of 24% in registrations per year 2002 – 2013 • In 2013, FRM candidates came from 141 different countries

and territories

More than 900 organizations had 5 or more FRM registrations in 2013

Currently, there are over 28,000 Certified FRMs worldwide

105

185251

287349

424

575

646

732

878923

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Organizations Represented by 5 or More Registrants

• Registrants come from every major financial institution, government regulator, consulting firm, and academic institution around the world

FRM ANNUAL GROWTH IN REGISTRATIONS

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FRMs Are Well Represented Around the World

1. ICBC 2. HSBC 3. Bank of China 4. PwC 5. UBS 6. Citi 7. KPMG 8. Agricultural Bank of China 9. EY 10. Deutsche Bank 11. Standard Chartered Bank 12. Credit Suisse 13. Deloitte 14. JP Morgan 15. Barclays 16. Samsung 17. ING 18. Bank of Communications 19. Bank of America 20. BBVA

Top 20 companies with the most FRMs

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201

734

865

1060

1277

0

200

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600

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1000

1200

1400

*Nov 2009 May & Nov 2010

May & Nov 2011

May & Nov 2012

May & Nov 2013

Total ERP Registrations

ERP Candidate Registrations Are Growing

Top Companies with the Most Certified ERPs

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Driving Demand for Risk Certification

• Increased demand for risk managers • Financial markets and firms are increasingly globalized and interconnected • Global financial products are becoming ever more complex • Transactions are happening at faster rates and data sets are getting larger • Regulatory initiatives and requirements are increasing • The recent global crisis has only accentuated these fundamental forces

• Emergence of a risk professional • Definable skills and abilities

• Increased value of the FRM and ERP certifications

• Exam curriculum that is aligned with current industry practice and rising global demands

• Holistic view of risk – skills and knowledge applicable across situations, firms, and industries

• Continuous learning opportunities through GARP’s CPE Program

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Things to know as a candidate

• The FRM and ERP exams are challenging

• Don’t fear the quantitative topics

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Things to know as a candidate

• The FRM and ERP Practice Exams are (sort of) representative of the actual exams

• Know the exam-day policies and procedures • Know where your test site is and how to get there with lots of

time • Have the proper ID • Have the right calculator and know how to use it • Follow the rules, pay attention to the time, stop writing when

time is up • Answer every question

• Know what you need to do after you pass

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Things to know as a Certified FRM/ERP

• GARP wants you! • Certified FRMs and ERPs are the key to the future of both

programs • Job Task Analysis defines the curriculum • Participation in exam development

• There is continuing professional education (CPE) for both the FRM and ERP • GARP’s CPE Program requires 40 hours of CPE credit every 2

years • Global, flexible and delivers an extensive range of highly

relevant programs • Broad range of global providers of education and training

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Things to know as a Certified FRM/ERP

• Institutional awareness and endorsement of the FRM and ERP is growing quickly • Corporate, regulatory and academic outreach

• Stay connected • FRM/ERP Community

• Directory • Blog

• Chapters • Events – Annual Convention

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Newly Certified FRMs and ERPs

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Newly Certified FRMs and ERPs

Newly Certified FRMs Newly Certified ERPs

Lamees Al Baharna Hugo Fallourd Qian He Tatiana Lizarazo Munoz Joshua Rounds NilsBertil Wallin Aristos Constantine

Qais Al-Kharusi Hua Fang Thomas Higgins Desmond Macauley Jimmy Samaha Ming Wang Lian Duan

Anurag Ambekar Eric Farhi Hsiang-Jui Hsu Antonio Maffei James Scanlon Zhennan Wang Patrick Gimlett

Frederick Appel Chao Feng Xinna Hu Sau Chun Mak Shuai Shao Takayoshi Wiesner May Ha

Timur Bakirov Carey Fieldcamp Qiang Hui Gregory Mann Michael Sheldon Gretchen Wright Stacy Havlicek

Byron Beene Eduard Freedland Bogdan Ianev Itzhak Margolin Ai Shen Pei-Chang Wu David Jan

Max Bitenskiy Sunil Gangwani Jason Jarnagin Nikhil Merchant Jiamin Shen Zhengkan Xi Anoori Kadakia

David Bouchard Phani Ganisetti Kengqing Jian Tejas Rajendra Mhaskar Jinglei Shen Wenjie Xu Andrew Lin

Vanessa Bouchereau Namik Geydarov Yongchen Jin William Miller Ning Shen Michael Yampol Victoria Lyandres

Nigel Bullock John Giacoppo Scott Knapp Mayank Nanda Lina Sheng Fan Ye Philip Renton

Anthony Calenda Jennifer Gikas Ching-Yao Ko Saidrasul Nasretdinov Mingyu Shi Sookhee Yee Laure Tessaro

Ashley Carlisle Vincent Gillick Brian Kotacska William Painter Harsimran Singh Xin Ying W Michael Weinstein

Daria Castagna George Gipp Santosh Kumar Wenxiao Pan Ritesh Singh Qianmeng Yu

Huey-Ling Chang Kathrin Go Xueyan Lang Raunaq Patwardhan Alok Singhal Chong Zhang

Min Chen John S. Godier Beixi Li Alvaro Pereira-Padilha Michael Soccio Juan Zhang

Shuo Chen Daniel Grzywacz Yingjun Li Jonathan Poynter Sudarshan Sriraman Kai Zhang

Zn Hong Chen Xinwei Gu Yinhu Li Michael Price Daya Kiran Sunkara Jie Zheng

Yifei Cheng Joseph Guirguis Shuang Liang Mitchell Protass Mohamed Talaat Lu Zhijun

Sung Chung Hui Guo Andre Liu Xiaorui Qiu Hua Tang Jianhui Zhou

Richard Ciccotelli Raja Gupta ChenChen Liu Imran Qureshi Samuel Thompson

Firas Daaboul Vishal Gupta Cong Liu Gyaneshwar Rajan Cheng-Hsien Tsai

Yan Dai Anastasios Hagisavas Hsin I Liu Nayan Ramani Koji Tsurumi

James DiGuglielmo Lyon Hardgrave Lin Liu Labhesh Ramchandani Matthew Turner

Jeffrey Eden Jonathan Harris Mei Liu Giuseppe Ricotta Atanas Vanchev

Sebastian Elliot Jaroslaw Hawrylewicz Yingying Liu Christopher Rivers Jyoti Verma

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Study Group Formation

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Study Group Formation

• Organize into 4 groups: • FRM Part 1, FRM Part 2, FRM Both Parts, ERP

• General guidance • Share contact info and appoint a coordinator • Agree on schedule – meeting place, meeting time • Agree on expectations

• Assign readings • Template for group

• Summary by AIM Statement of key knowledge points • Sample calculations • Possible questions

• Other resources – exam prep providers, certified FRMs/ERPs

Creating a culture of risk awareness®

Global Association of Risk Professionals 111 Town Square Place 14th Floor Jersey City, New Jersey 07310 USA + 1 201.719.7210 2nd Floor Bengal Wing 9A Devonshire Square London, EC2M 4YN UK + 44 (0) 20 7397 9630 www.garp.org

© 2014 Global Association of Risk Professionals. All rights reserved.

About GARP | The Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better informed risk decisions. Membership represents over 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and corporations from more than 195 countries and territories. GARP administers the Financial Risk Manager (FRM®) and the Energy Risk Professional (ERP®) Exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels. www.garp.org.