Organizational Benefits of Risk Management Certification

You may be ready to decide which risk managementevery technical and functional competency the
certifications to look for or which ones you willposition calls for.
ensure that certain existing associates complete.The recognition and standards are also very
Before you do this, it's a good idea to examine yourimportant. For example, if you are looking to
organization in relation to each individual certification.cross-utilize a staff that already has certification in
Look at the factors that affect your organization andother areas, such as CFA or Actuarial, you may want
determine which certifications will be closely alignedto go with the PRM, as that certification credits
with those factors. Then, consider some of thepeople for having other designations. If other
overall benefits your organization can gain from riskdesignations don't play a part in your organization,
management certifications.you can consider any of the three. Also consider the
To begin with, look at the technical and functionalglobal recognition of the certification based on your
specifications of each certification. For example, iforganization. Whatever you decide, you can use the
you are not an energy related industry, you probablyrecognition and standards set by the certification in
would not need the ERP certification from GARP. Ofseveral ways.
course, that's an easy distinction to make. The PRMYou can also market the organization based on its
and FRM certifications, although they come fromcertifications. For example, you can say that a certain
different organizations, are very similar. It may bepercentage of your employees hold the designation.
necessary to do a further analysis on the exactThis type of branding can work both internally and
technical and functional specifications of eachexternally. Customers, when educated about the
certification to see which one matches your"weight" of a certification, will probably place more
organization more closely. You may also need to looktrust in an organization that is dedicated to
at where your organization is in terms of its owncertification, knowledge, and ethics. But look at this
position and its own recognition within the industry.from the opposite standpoint. You can use the
For example, if you are looking for a very highcertification to recruit and retain employees. For
standard of recognition and cross-utilization when itthose already certified, you can decide that leadership
comes to your certification, you may want tois promoted from the certified pools of people. For
consider the PRM. If not, either one would most likelythose who don't hold certification, marketing the
work.company with the promise of a global certification
Also consider how and "where" you'll want to use thecan get the brightest talents through the door - and
certifications. Are you looking at hiring or also athold on to them.
top-grading your current workforce? In regard toAlso consider the subtle marketing that a certification
hiring, you can easily determine if you want to recruitplan can accomplish. If shareholders and stakeholders
for one certification or both. But if you arebecome aware that the company is now hiring risk
considering top-grading your existing staff by puttingmanagers who hold global certifications, it will increase
them through a certification program, you'll want totheir perception of value. This holds true for
look at the time involved as well as the cost andregulators, as well. The fact that an organization is
pass rates of the major risk managementlooking for ways to ensure quality and adherence to
certifications.ethical standards will increase regulatory value, as well.
In your overall analysis, you may also want toThe network that is created through certification is
consider the expressed and implied competenciesalso an organizational benefit. For all of the risk
we've already discussed. What are your organization'smanagement certifications, the candidate must be a
desired competencies when it comes to positions atmember of the certifying organization. This
the levels that are affected by these riskmembership increases the network not only for the
management certifications? Although the three majorindividual but also for the organization. If there is a
certifications generally carry the same competencies,new topic or issue, the certificate holder will be able
you may want to compare your organization'sto use the network to gain insight, knowledge, and
competencies with each certification program - andassist in the decision making process. Plus, like
make a determination that way.organizations can benchmark from each other,
What about overall organizational benefits of riskwhether a functional benchmark or even a
management certifications? First, a globally recognizedmanagement or leadership benchmark.
certification program puts employees on the sameThere are certainly numerous organizational benefits
footing. This is a way of ensuring that everyone into risk management certifications. You can achieve
particular job groups or functions has the same levelyour best benefits by closely analyzing your
of experience, knowledge, and ability. For anorganization, its competencies, and its goals, and
organization that is attempting to move forward in anchoosing the certification program or programs that
uncertain financial environment, this is crucial. Formost closely align with those items. All three of the
example, if you have new leadership positionsmajor risk management certifications, the FRM, PRM,
available because of expansion, you can look at eachand ERP, carry overall and specific benefits. It's up to
person and how he or she matches thoseyou and your organization to decide which one works
competencies instead of being tasked with examiningthe best for you.