Difference Between FRM and ERP
FRM is the short form for Financial Risk Manager. With this course, an individual can earn job opportunities in investment banking, risk assessment management, etc., whereas ERP is the short form for Energy Risk Professional. With this course, an individual can earn job opportunities in global energy companies, etc.
In an increasingly complex financial world, there has been a growing demand for risk professionals with the capabilities to identify and evaluate financial risksFinancial RisksFinancial risk refers to the risk of losing funds and assets with the possibility of not being able to pay off the debt taken from creditors, banks and financial institutions. A firm may face this due to incompetent business decisions and practices, eventually leading to bankruptcy.read more. It is important to note that other key areas like technology and energy have also felt an urgent need for qualified risk professionals who can identify potential risks, including financial, and make it possible to minimize or manage them by adopting a strategic approach. In the course of this article, we will discuss two key risk management credentials, FRMFRMFRM exam (Financial Risk Management) is a part of tests conducted by the Global Association of Risk Professionals to issue an FRM certification to the person who passes the exam recognizing candidate’s eligibility to work in an economic environment as they possess a strong knowledge and sound understanding of financial risk, analysis, and management.read more and ERP, that deal with financial and energy risk management, respectively. This should help anyone planning to pursue a career in risk management in either of these areas.
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FRM vs. ERP Infographics
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FRM vs. ERP Summary
What is FRM?
Financial Risk Manager (FRM) is a globally acknowledged credential offered by the Global Association of Risk Professionals (GARP), an international organization engaged in promoting industry standards in risk management. FRM focuses on financial risk management, making it a highly specialized certification program. This makes it suited for individuals planning to gain expertise in financial risk management instead of adopting a generalized approach. An increasing number of global organizations are looking for accredited risk professionals to add a competitive edge to survive in the modern industry.
Quantitative Analysis
Risk Models
Financial Markets & Products
Valuation
Credit Risk
Market Risk
Operational Risk & Resiliency
Treasury & Liquidity Risk Management
Investment Management
Current Issues in Financial Markets
Crude Oil Market
Refined Product Market
Coal Market
Natural Gas Market
Electricity Market
Power Generation
Financial Energy Products
Energy Price Modeling
Risk Assessment Modeling
Risk Management Tools
Part I: $425 for early registration, $550 for standard registration, and $725 for late registration.
Part II: $350 for early registration, $475 for standard registration, and $650 for late registration
Part II: $350 for early registration and $475 for standard registration.
Risk Assessment Manager
Investment Banker
Financial Risk Consultant
Risk Management Analyst
Energy Risk Analyst
Energy Risk Manager
Energy Consultant
Part II: May 15 and November 20
What is ERP?
Energy Risk Professional (ERP) is an internationally acclaimed credential awarded by GARP. This is perhaps the only credential of its kind, developed for those with a keen interest in energy risk management as a highly specialized field that can offer some good career prospects in the global industry. These credentials focus on managing physical and financial risks involved in energy management and help acquire an in-depth understanding of global energy markets. In addition, participants are introduced to the structuring and trading of energy commodities and concepts of identification, evaluation, and management of complex energy risks.
FRM vs. ERP Exam Requirements
FRM:
There are no educational requirements, but the candidate should have at least two years of full-time work experience in risk management, including portfolio management, risk consulting, risk technology, or other related areas.
ERP:
There are no prerequisites to register for the exam. However, candidates must demonstrate two years of relevant work experience to earn the designation. In addition, ERPs must maintain an active membership of GARP and earn 40 hours of Continuing Professional Development (CPD) every two years to keep up with the prevailing industry standards.
Why pursue FRM?
Risk professionals should pursue FRM with a reasonable amount of industry exposure to acquire advanced risk management knowledge and skills imparted as a part of the certification program. Those willing to specialize in financial risk management can benefit greatly from this. In addition, it helps a professional become a part of an elite global network of financial risk professionals. This can be of immense advantage to aspirants planning to become associated with organizations of a global repute.
Read more about FRM Exam Dates.
Why pursue ERP?
ERP is meant for risk professionals who wish to acquire expert knowledge and capabilities in energy risk management instead of risk management as more of a generalized field. It must be understood here that risk management in any form is a very complex field, and one should only go along with such a career choice if they are sure about it. Energy risk management might be considered more of a developing field but quite an important one, keeping in mind the central role of energy as a commodity in the modern world. After earning this designation, professionals can look for work opportunities with global energy organizations.
Conclusion
FRM is primarily meant for professionals with industry exposure in financial risk management who are looking to specialize in the field with a comparatively wider scope to explore opportunities related to the management of market and non-market financial risks in the global industry. On the other hand, ERP is aimed at aiding aspirants to specialize in energy risk management, which is a unique field in and of itself considering the emerging significance of energy commodities, development of energy markets, and the need for skilled professionals to manage inherent physical and financial risks in this industry. Therefore, FRM is more suited for those who have already worked in this domain and would now like to gain further expertise. In contrast, ERP is meant for those with relevant experience in energy risk management, making it somewhat a difficult designation to earn, but with its unique advantages in the emerging global scenario.
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