The PRMIA Credit and Counterparty Risk Manager Certificate

Professionals in the field of Credit Risk Management are expected to have a thorough understanding of credit risk. This includes an in-depth understanding of credit risk analysis frameworks, deployment methodologies and the methods of credit risk management in corporate houses. In the light of the financial crisis of 2007-08, the importance of compliance to moral and ethical code has further been highlighted.

The Professional Risk Managers International Association or PRMIA is offering the Credit and Counterparty Risk Manager Certificate or CCRMC based on this premise. This one paper exam requires the candidate to be a PRMIA member. This exam has no continuing education credits. The CCRM handbook from PRMIA is the only study material prescribed for the exam. The 60 multiple-choice, two-hour exam has a computer-based testing methodology. The Pearson VUE testing centers is the approved agency for conducting these exams in over 165 countries. The passing percentage required for this exam is 60%.

The Learning Objectives of this exam according to PRMIA are as follows:

  • Understand the various sources and types of credit risk
  • Learn how different definitions of credit risk can lead to different results
  • Design a comprehensive framework for credit and market risk without double counting or remainders
  • Assess the appropriate level of analysis for an institution
  • Understand the many elements of risk mitigation;the working, identification of residual risks and how to include it within models
  • Comprehend the impact of the different risk drivers and a validation of the model results using back-of-the-envelope calculations
  • Assess the software and system implications of the different modeling choices

The exam voucher and handbook (available in digital and print format) are available in the price range $494 to $532.

The syllabus for the exam includes:

  1. Classic Credit Products
  2. Classic Credit Life Cycle
  3. Classic Credit Risk Methodology
  4. Credit Derivatives and Securitization
  5. Modern Credit Risk Modeling
  6. Credit Portfolio Management
  7. Basics of Counterparty Risk
  8. Risk Mitigation
  9. Credit Valuation Adjustment (CVA)
  10. Aspects of Credit Valuation Adjustments
  11. Managing counterparty Risk and CVA

PRMIA has shared the breakdown of questions for the various topics in the syllabus.

[caption id="attachment_24447" align="aligncenter" width="522"] Source: PRMIA[/caption]

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