Energy Risk

Professional
Candidate Guide
2014
1
The Energy Risk Professional (ERP) designation is the only global
certification for risk professionals in the energy field. It was developed
in direct response to the growing need for risk managers who can
understand the breadth and complexity of risk across the physical
and financial energy markets.
To achieve the ERP designation, candidates must first pass the ERP
Exam, a challenging, practice-oriented test designed to comprehen-
sively assess a candidates ability to measure and manage risk across
the energy value chain. By preparing for the ERP Exam, candidates
will develop a framework for thinking critically and holistically about
energy risk.
After passing the ERP Exam, candidates must demonstrate a minimum
of two years of full-time energy risk-related professional experience
to become certified as an ERP. A mandatory continuing education
program helps Certified ERPs guide their professional development;
by participating in this program they are able to keep pace with the
myriad issues driving the global energy markets.
Whether you currently work on the physical or financial side of the
energy industry or are interested in transitioning to a career in energy,
earning the ERP designation can help accelerate your career and pro-
fessional development. It broadens your perspective on how global
energy markets operate and influence one another, empowers you
with a framework for identifying and analyzing a variety of energy
risk-related issues, and can help differentiate you when being consid-
ered for assignments of increasingly higher responsibility.
The ERP Exam is developed
in conjunction with a panel of
leading energy risk practitioners
whose expertise spans the full
range of disciplines covered by
the Exam. Updated annually,
the ERP curriculum is derived
from current industry standards
and practices. It creates a link
between the physical and finan-
cial energy markets
by focusing on:
Exploration, production,
transportation, storage,
refining, processing, and
distribution of physical energy
commodities
Structuring and valuation of
financially traded energy
products
Identification and manage-
ment of market, credit, and
operational risk
Overview
[ ]
The ERP Program is a career-long
professional resource that helps Certified
ERPs remain current with the demands
of the energy industry.
Enrolling in the ERP Program is straightforward; candidates register for
the ERP Exam online via the GARP website. The ERP Exam is offered twice
a year, in May and November. There are no educational or professional
prerequisites to register for the ERP Exam.
The ERP Exam is a comprehensive, practice-oriented assessment that
spans both the physical and financial markets. Test weights and question
allocation are structured to create an exam that balances intellectual rigor
against exam validity and reliability, two important characteristics of any
professional certification exam.
After achieving a passing score on the ERP Exam, to become certified
and use the ERP designation professionally, a candidate must satisfy a
work experience requirement. To that end, candidates must demonstrate
a minimum of two years of full-time work experience in the area of energy
risk management or another related field including, but not limited to: trad-
ing, portfolio management, faculty academic, industry research, economics,
auditing, risk consulting, and/or risk technology. A list of sample job titles
that GARP uses for ERP certification purposes is available on our website.
Once certified, GARP requires Certified ERPs to further their skills and
knowledge through a mandatory Continuing Professional Education (CPE)
program. GARPs CPE program provides Certified ERPs with a formal
means to meet the growing demands of their profession while ensuring
the ongoing integrity of the certification by remaining abreast of industry
trends such as: challenges and solutions in energy modeling and optimiza-
tion of physical assets, enterprise risk management, fundamental supply
and demand trends in physical energy commodity markets, and compliance
with new accounting and regulatory initiatives. The CPE program requires
40 credit hours to be earned every two years.
ERP
Exam
8 hours/
140
questions
Demonstrate
2 Years
Related
Work
Experience
Certified
Energy
Risk
Professional
Mandatory
Continuing
Education
40 hours/
2 years
2
The ERP Exam
4
On an annual basis, GARPs Energy Oversight
Committee (EOC), a panel of the leading energy
risk practitioners worldwide, supervises the develop-
ment of the ERP Exam. Current EOC members include
practitioners with expertise in risk consulting, risk
management, commodity trading, and quantitative
analysis from both the physical and financial energy
markets.
The ERP curriculum is developed in conjunction with
the EOC to address the fundamental knowledge, skills
and abilities necessary for professionals that manage
risk in the energy industry. This body of knowledge
is published in the ERP Study Guide. A more detailed
summary of the key learning objectives associated
with each topic are summarized in the ERP AIM
Statements.
ERP Exam Structure
The ERP Exam is a pencil and paper multiple choice
exam of 140 questions. The ERP Exam is eight hours
long and is divided into two sessions of four hours
each, the AM session and the PM session.
The ERP AM session contains 70 multiple choice
questions. The ERP PM session contains 70 multiple
choice questions. The Exam is offered exclusively in
English, twice a year in May and November, in person
at approximately 90 Exam sites around the world.
This approach ensures that there is fairness and
consistency for all candidates globally.
ERP Exam Content
The ERP Exam is a comprehensive, practice-oriented
assessment that spans both the physical and finan-
cial energy markets. Candidates are expected to
demonstrate an understanding of important concepts
associated with several broad areas of study.
The content and question allocation for the 2014
ERP Exam has been structured to create an exam
that balances intellectual rigor against exam validity
and reliability, two important characteristics of any
professional certification exam.
The test weights for the 2014 ERP Exam are as follows:
PHYSICAL ENERGY COMMODITIES AND MARKETS
TOTAL WEIGHT 50%
Oil, Gas and Coal Markets (25%)
Reserve estimation and reporting
Mineral rights ownership
Fiscal systems applied in global production
Project development and valuation
Global crude oil benchmarks and price
formation
Petroleum transportation and storage
Crude oil refining processes, products and
economics
Global natural gas markets and price formation
Natural gas transportation and storage
Global coal markets and price formation
Electricity Markets and Renewable
Generation (25%)
Economics of power generation and dispatch
System reliability
Market design
Power transmission
Analytical tools
Investing in generation capacity
Structured solutions for electricity markets
Global market applications and current trends
Renewable generation
Carbon emissions
Structure and Content
[ ]
5
FINANCIAL PRODUCTS AND RISK MANAGEMENT
TOTAL WEIGHT 50%
Financially Traded Energy Products and Structured Transactions (15%)
Forward contracts and exchange traded futures
Energy commodity swaps
Options and option strategies
Energy commodity exchanges
OTC derivative trade process
Global regulatory development
Energy Commodity Price Formation and Market Risk (15%)
Data analysis tools and applications
Energy spot price formation:
Energy price volatility and modeling:
Characteristics of energy commodity forward curves
Market Risk Measures
Credit, Counterparty, and Country Risk Assessment (15%)
Fundamental credit assessment
Credit exposure metrics
Counterparty credit exposures, pricing, mitigation and documentation
Central counterparty clearing
Wrong-way risk
Country risk assessment
Enterprise Risk Management and Business Ethics (5%)
Enterprise risk management (ERM) framework
Determining and communicating risk appetite and risk tolerance
Quantitative and qualitative risk metrics
Implications of E3 and a Complex Infrastructure System (CIS)
The GARP Code of Conduct
Companies Employing the Most
ERP Candidates:
FINANCIAL INSTITUTIONS
Barclays Capital
Citi
Credit Suisse
HSBC
JPMorgan Chase
Morgan Stanley
Standard Chartered
UBS
ENERGY COMPANIES
BP
Capital Power
Constellation
DTE Energy
EDF Energy
ENI
E.ON
Gazprom
GDF SUEZ
Hess
Litasco
RWE AG
Shell
Statoil
CONSULTING FIRMS
Allegro
Deloitte
EY
KPMG
PwC
Sapient
PUBLIC/GOVERNMENT AGENCIES
Federal Energy Regulatory
Commission (FERC)
6
Exam Dates
In 2014, the ERP Exam will be offered on May 17, 2014
and November 15, 2014.
Registration Periods
Candidates can register online for the ERP in one of
three registration periods: Early, Standard, and Late.
There is a difference in price between the three peri-
ods, which are detailed in the Fees section below.
Fees
When registering for the ERP Exam for the first time,
candidates pay an enrollment fee and an Exam fee.
The enrollment fee covers the basic costs associated
with developing the ERP Program and administering
the ERP Exam. Candidates are required to pay the
enrollment fee when they initially register for the
ERP Program. The enrollment fee is to participate in
the ERP Program, not to sit for the Exam. Additionally,
the enrollment fee entitles you to a complimentary one
year GARP Individual Membership (a US$195 value).
Fees can be paid via secure online payment, by check
(if drawn on a U.S. bank and payable in U.S. dollars),
or by wire transfer.
Deferrals
An ERP candidate may only defer their Exam registra-
tion once to the next test date. Please note:
A deferral to the next examination date must
be submitted by the last day of registration. For
example, the last day of registration for the May
Exam is April 15; for the November Exam the last
day of registration is October 15.
There is an administrative processing fee of
US$100 that accompanies each Exam deferral.
This fee is payable by credit card only at the time
of your deferral request.
Suggested readings will change from Exam year
to Exam year.
More information on deferring the ERP Exam can be
found on GARPs website.
Before Registration: A Checklist
Before registering for the ERP Exam, we suggest
that you:
Ensure that your current government-issued
photo ID matches the name under which you are
registering for the Exam.
Only a current and valid government-issued
form of identification, which must include a
photograph of the ERP candidate, will be
accepted for identification purposesfor
example, a country-issued passport or driver's
license. GARP will not accept work/employer
identification cards, voter identification cards,
PAN cards, a learners permit or even a student
identification card.
The name on your passport or drivers license
must be exactly the same as the name on your
Exam registration. For example, the name
cannot be used to register for the Exam;
Xuecheng Li would be the correct name to use
to register using the phonetic alphabet.
Familiarize yourself with key ERP Exam deadlines.
Learn about GARPs Exam policies.
Decide where to take your Exam.
Review, understand and agree to GARPs Code of
Conduct and Candidate Responsibility Statement.
If needed, request special accommodations for
Americans with Disabilities (ADA), or request an
alternative Exam date for religious reasons (RAD).
Registering for the ERP Exam
[ ]
323 organizations have been represented by three or
more ERP registrations since 2009.
8
To help ERP candidates get ready for the ERP Exam,
GARP provides study materials, Practice Exams, and
information on approved, third-party Exam Prepara-
tion Providers. Due to the sizeable amount of material
covered in the Exam, we suggest that you create a
weekly study schedule that is designed to spread
out learning of the material over an extended period.
Cramming for the Exam in the few weeks leading up
to it is not recommended.
The time needed for exam preparation will vary from
individual to individual and will be based on a number
of factors including an individuals professional experi-
ence, their general level of knowledge of the energy
markets and reading comprehension aptitude. For
past exams, a majority of candidates report spending
anywhere between 150 to 400 hours preparing for
the Exam.
Recommended Study Plans
The ERP Exam Preparation Handbook was developed
to assist ERP candidates in their preparation for the
ERP Exam by suggesting strategies for completing
the reading material outlined in the ERP Study Guide
and ERP AIM Statements documents, which together
form the blueprint for Exam topic coverage. The ERP
Exam Preparation Handbook contains sample 15- and
20-week study plans. It can be downloaded from the
ERP Study Center on GARPs website.
Study Materials
The ERP Study Guide summarizes all required
readings for the ERP Examination. In addition,
Key Concepts appear as bullet points at the
beginning of each section of the Study Guide
and are intended to help candidates identify the
major themes and knowledge areas associated
with a particular section.
The AIM Statements summarize the key know-
ledge points for each reading outlined in the Study
Guide. These knowledge points form the basis
for developing ERP Exam questions. Candidates
should always reference the AIMs document in
their preparation for the ERP Exam. To facilitate
a candidates preparation, each knowledge point
in the AIM Statements is associated with a sug-
gested reading from the Study Guide which
supports and explains it. Candidates who compare
the Key Concepts to the knowledge points will
note that in most cases several knowledge points
are related to each broader Key Concept.
ERP Core Readings and Course Packs. The ERP
Core Readings cover risk management in both
the physical and financial sides of the global
energy markets. Study areas include: the produc-
tion, distribution and trading of physical energy
commodities; the structure of worldwide electri-
city markets; the trading and valuation of energy-
based financial instruments; principles for modeling
energy price behavior; techniques for evaluating
and managing risk in the energy markets; and
principles for evaluating and managing credit,
counterparty, and country risk.
Practice Exams are available for free on the GARP
website, and candidates are strongly encouraged
to download and take the ERP Practice Exams.
Practice Exams will provide candidates with a good
sense of the question types to expect when sitting
for the actual ERP Exam, and will allow the candi-
date to estimate how much time they can expect
to spend answering individual questions. Each
Practice Exam contains Exam questions, Exam
answer keys, and detailed explanations for all
answers. It is strongly recommended that candi-
dates mimic exam day conditions when taking
each Practice Exam. Allocate 1.5 hours for each
Exam with only paper, pencil, calculator, and
a timer.
Preparing for the ERP Exam
[ ]
9
Exam Preparation Providers
Some candidates for the ERP Exam may wish to study
the Exam material with the assistance of an ERP Exam
Preparation Provider. Exam Preparation Providers may
offer courses online or in person.
GARP provides a list of approved ERP Exam Prepar-
ation Providers on our website as a service to ERP
candidates. Please note that GARP does not endorse,
promote, review or warrant the accuracy of the prod-
ucts or services offered by Exam providers of ERP-
related information, nor does it endorse any pass rates
claimed by the Exam Preparation Provider. Further,
GARP is not responsible for any fees or costs paid
by the user to an ERP Exam Preparation Provider.
Study Groups
While the ERP curriculum is designed to be a
self-study program, many candidates find that
studying with their peers positively impacts their
Exam preparation. You can connect with other ERP
candidates to form study groups by joining our
Facebook or LinkedIn groups. Alternatively, many
GARP Professional and University Chapters now
facilitate study group sessions that enable ERP
candidates in the same city or region to meet each
other and ask GARP Regional Chapter Directors
questions about the Exam.
Candidates for the ERP have originated from
over 1,025 different organizations.
10
The ERP Exam is a pencil and paper multiple choice
exam offered exclusively in English. It is offered in per-
son at approximately 90 Exam sites around the world.
This in-person approach ensures that there is fairness
and consistency for all candidates globally.
Exam Locations
While cities remain the same, locations within each
city may change from year to year. A complete list of
Exam sites is available on the GARP website.
Identification
Upon your arrival at one of the Exam sites, only a
current and valid government-issued passport or
drivers license, which must include a photograph of
the ERP candidate, will be accepted for identification
purposes. The name on your passport or drivers
license must be exactly the same as the name on
your Exam registration. For more information, visit
the GARP website.
Calculators
Only GARP-approved calculators are permitted to be
used at the ERP Exam. Use of a non-authorized calcu-
lator during the Exam will result in the candidates
answer sheet not being graded, and the candidate
will receive no score for the Exam. Candidates may
not consult the operators manual for their calculator
during the Exam. Calculator memory must be cleared
prior to the start of the Exam.
The calculators approved for use during the ERP
Exam are:
Hewlett Packard 12C (including the HP 12C
Platinum and the Anniversary Edition)
Hewlett Packard 10B II
Hewlett Packard 10B II+
Hewlett Packard 20B
Texas Instruments BA II Plus (including the BA II
Plus Professional)
GARPs calculator policy should be reviewed on the
GARP website in advance of Exam day.
Prohibited Items
In order to maintain the integrity of the testing
process, no cameras, mobile phones (including smart-
phones or iPhones), computers, pagers, headsets or
PDAs are permitted. Additionally, baggage of any
kind such as backpacks, handbags, tote bags, brief-
cases, laptop bags, luggage, carrying cases or pencil
cases is not permitted in the testing room, although
a designated area away from the testing room can be
accessed during the examination.
A full list of permitted and prohibited items can be
found on the GARP website under Exam Center/
Room Policies.
Duration of the Exam
Each part of the ERP Exam is four hours long, for a
total of eight hours. The AM session consists of 80
multiple choice questions and the PM session also
consists of 80 multiple choice questions. You must
sit for both the AM and PM sessions in order for your
ERP Exam to be graded. Both the AM and PM sessions
must be attended in a single Exam administration.
Scoring the Exam
There are no penalties for incorrect answers. The
passing score is determined in conjunction with the
Energy Oversight Committee.
Sitting for the ERP Exam
[ ]
Exam Violations
GARP seriously reviews each and every Exam Violation Report. We have listed
some of the violations that have resulted in a Candidate Violation Report being
filed and, subsequently, a candidates Exam not graded:
Candidate began the Exam early
Candidate opened the Exam booklet early
Candidate continued to write after the session ended
Candidate brought a cellular telephone or smartphone into the examination
room
Candidate caught cheating
Candidate violated GARPs calculator policy
Exam Results
Exam results are pass/fail and are released via email approximately six weeks
after the Exam is administered. Candidates are provided with quartile results
that enable them to see how they scored on specific areas relative to other
candidates.
Top 10 Exam Sites for the November 2013
ERP Exam, by number of registrations:
London Houston Lagos Singapore
New York Calgary Mumbai New Delhi
Dubai Accra
WHAT TO BRING ON EXAM DAY:
Exam Admission Ticket
Current non-expired government-
issued photo identification
either a drivers license or
passport
Approved calculator
#2 or hard black (HB) pencils
The following items may be carried
in your pockets or in transparent
plastic bags. Plastic bags must be
placed under your chair and may be
accessed during the examination.
Wallet (or money purse)
Calculator batteries, erasers,
pencil sharpeners, eye-glasses,
earplugs
Medicine, tissues and other
medically necessary or personal
items
Food and drink containers may not
be opened in the testing room. All
food and drinks must be consumed
outside the testing room.
11
Using the ERP to Build Your Career
Certified ERPs have a competitive advantage
that provides them the opportunity to
accelerate their careers across many facets
of the energy space.
Candidates who pass the ERP Exam demonstrate their understanding of the
unique link between physical energy commodity markets and the financially
traded instruments and techniques used by producers, end-users and finan-
cial institutions to measure and manage energy risk.
Candidate Types
Professionals
Current professionals in the energy space leverage the ERP certification
to broaden their knowledge of the complex energy value chain, to sharpen
their ability to effectively identify, analyze and manage risk, and to remain
abreast of emerging trends across the energy space, particularly in markets
or topics where they have less direct professional experience. For younger
energy professionals near the start of their careers, becoming a Certified
ERP is an excellent way to stand out among their peers while demonstrating
a commitment to the energy industry.
Career Changers
Career changers, such as those individuals previously working in non-
finance, non-risk, or non-energy roles, become Certified ERPs in order to
gain access to specialized, practical knowledge in the rapidly growing
global energy space. Undertaking the rigorous course of study to become
a Certified ERP signals an unmistakable level of commitment to the
energy sector.
Students
Students with an interest in a career in energy may elect to sit for the
ERP Exam during or immediately after completing their studies in order
to complement their prior coursework or to develop a base of specialized
knowledge that was not available in their university curriculum. Students
recognize the benefit of signaling to prospective employers their dedication
to learning about the energy marketplace through engagement in the
ERP Program.
13
14
Career Benefits
Stand out to current and prospective employers
Whether you currently work in the energy industry
or are interested in transitioning to a career in energy,
earning the ERP designation can help accelerate
your career. Becoming a Certified ERP demonstrates
your commitment to the energy markets. It empowers
you with a knowledge framework for identifying and
analyzing a variety of risk-related problems across
the energy value chain while instilling confidence to
seek assignments with increasingly higher levels of
responsibility within your organization.
Join an elite group
Certified ERPs join a lifelong network of similarly-
minded risk management professionals, allowing
you to expand your professional career opportunities
within the worlds of finance and energy. Candidates
for the ERP designation work in a number of indus-
tries, including:
Energy companiesincluding oil, power, natural
gas and LNG, renewables
Financial Institutionsincluding commercial and
investment banks, asset management firms,
hedge funds
Consulting firms
Technology firms
Government agencies
Industry concentrations of ERP candidates
38%: Energy Companies
32%: Banks and Commodity Trading Firms
23%: Energy Consulting Firms
5%: Academic Institutions
2%: Public Agencies
Demonstrate your commitment
Mastering the ERP Exam requires discipline and
represents a significant commitment to the risk man-
agement profession and energy markets, positioning
Certified ERPs as leaders in the industry with a strong
commitment to professional excellence.
Confirm your achievements
Real-world experience is an essential component of
attaining ERP certification. Candidates are required
to demonstrate related professional experienceso
becoming a Certified ERP means considerably more
than passing an exam.
Enhance your reputation
All Certified ERPs are expected to adhere to principles
that promote the highest levels of ethical conduct and
disclosure beyond following the letter of applicable
rules and regulations. Employers know that Certified
ERPs will help safeguard their firms reputations.
Certified ERPs come from 52 countries.
Australia Austria Belgium Brazil Bulgaria Canada China Cyprus
Denmark France Germany Ghana Greece Hong Kong Hungary
India Indonesia Ireland Italy Jamaica Japan Kenya Kuwait
Lebanon Luxembourg New Zealand Nigeria Norway Pakistan Peru
Philippines Poland Portugal Qatar Romania Russian Federation
Singapore Slovakia Slovenia South Africa South Korea Spain
Switzerland Taiwan Thailand The Netherlands Trinidad and Tobago
Turkey Ukraine United Arab Emirates United Kingdom United States
of America
15
Q. How much time is needed to prepare for the
ERP Exam?
A. Candidates preparation times will vary based on
their prior professional experience level, academic
backgrounds, and familiarity with the concepts
tested on the curriculum. It is difficult to recom-
mend a particular number of hours to dedicate to
studying, but candidates should expect to commit
to between 150-400 hours of preparation time.
Q. How much work experience is required before
sitting for the ERP Exam?
A. There are no educational or professional prerequi-
sites to sit for the ERP Exam. However, there is a
professional experience requirement that must be
fulfilled before candidates can become certified as
an Energy Risk Professional. To review ERP certifi-
cation requirements, visit the GARP website.
Q. How quantitative is the ERP Exam?
A. The ERP Exam is not meant to be a rigorous
quantitative exercise that requires memorization
of highly complex formulas. ERP candidates are,
however, expected to have an understanding of
fundamental quantitative concepts and relation-
ships covered in the core readings. Candidates
should be prepared to solve a number of mathe-
matical calculations based solely on their under-
standing of these fundamental concepts. While
we do not provide a list of formulas for the Exam,
in some cases, particularly for more complex or
obscure calculations, information about terms or
values within an equation may be provided to the
candidate in the question.
Q. What are my career prospects after becoming a
Certified Energy Risk Professional?
A. By choosing the ERP, you are selecting the only
risk management designation in the world for
energy risk professionals. As global economies
continue to rebound and the world population
grows, global energy requirements will expand,
creating demand for highly trained energy risk
professionals. Earning your ERP designation not
only broadens your skill set, it demonstrates a
standardized level of industry knowledge, making
you a recognized leader in energy risk management.
Q. What is the difference between the FRM and
the ERP?
A. Many of the techniques used to evaluate and
manage market, credit, and operational risk in
traditional financial markets have been adopted
and applied to energy risk management. However,
the factors that drive price formation, volatility,
and risk in physical energy commodity markets are
quite different from conventional financial assets
like equities, fixed income and foreign exchange.
In addition, forwards, futures, and swaps have been
more heavily emphasized in the ERP curriculum
given their extensive use in the energy market.
Finally, the capital investment and highly leveraged
physical facilities required in energy production,
generation, distribution and storage infrastructure
creates a unique set of financial, operational and
safety challenges not found in the financial mar-
kets. A unique curriculum that integrates know-
ledge about physical energy markets, financially
traded products used in energy trading and hedg-
ing activities, and risk management applications all
characterize and distinguish the ERP from the FRM.
Frequently Asked Questions
[ ]
16
Q. In what languages can I take the Exam?
A. The only language that the Exam is administered
and instructions read on Exam day is American
English. The ERP Exam is not offered in any other
language. The dialect used in the examination is
American English. GARP is aware that not every
ERP candidate has American English as his or her
native language. In the exam development process,
GARP strives to ensure that questions are written
in a clear, concise form and avoid the use of collo-
quialisms or other terms or phrases that may be
unfamiliar to a non-native American English speaker.
Q. Do I have to be a member of GARP to sit for the
ERP Exam?
A. No. Membership is not required to sit for the ERP
Exams. However, you will receive complimentary
membership privileges as an Individual Member
of GARP for one year upon paid enrollment in the
ERP Program.
Q. Is continuing education mandatory for Certified
ERPs?
A. Yes. GARPs Continuing Professional Educational
(CPE) program is mandatory for Certified ERPs.
At the time ERP candidates enroll in the ERP
program, they are informed that participation in
the CPE program is mandatory. Upon receiving
notification of becoming a Certified ERP, you are
encouraged to enroll in the program without delay.
All CPE participants are required to complete 40
credits of continuing education every 24 months
after enrolling in the program. Credits are based on
a 60 minute hour; one credit per hour. Credits may
not be carried over from one cycle to another.
Frequently Asked Questions
[ ]
Further information about the ERP Program and Exam can be found on GARPs website, garp.org/erp, or you can
contact GARP directly with any additional questions at memberservices@garp.com.
About GARP
The Global Association of Risk Professionals (GARP) is
the only globally recognized professional association
for financial and energy risk certification and educa-
tion. In fulfilling our unique mission to elevate the prac-
tice of risk management at all levels throughout an
organization, GARP sets the global standard through
independence, expertise, and leadership.
Founded in 1996, GARP is a nonprofit, nonpartisan
membership organization. GARP does not engage in
political lobbying or donations, allowing us to be a
true advocate for our Members and the risk profession.
This independence enables us to develop, design, and
administer certification programs that reflect industry
best practices. A volunteer Board of Trustees, com-
posed of leading risk management practitioners from
some of the most prominent global financial firms and
universities, oversees our Association.
From its inception, GARPs exclusive focus has been
on risk management. Maintaining this focus has en-
abled GARP to develop unmatched expertise in risk,
which we transmit globally through our professional
designations. Through GARPs network of contacts
derived from our more than 150,000 Members, we
have access to the best risk practitioners worldwide.
GARP also bridges the gap between academic
research and real-world practice, maintaining part-
nerships with top universities and business schools.
To calibrate and benchmark its understanding of
the demands of the global risk management com-
munity, GARP also conducts formal job task analysis
surveys to determine the knowledge, skills and abili-
ties required to function effectively as a financial risk
manager around the world.
GARPs global leadership status in financial risk
management education is independently validated
by the rapid growth in the number of institutions hav-
ing five or more registrations for the FRM Program,
as well as by the growth in GARP Membership to
encompass Members in more than 195 countries
and territories worldwide.
Creating a culture of
risk awareness
Global Association of
Risk Professionals
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14th Floor
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2014 Global Association of Risk Professionals. All rights reserved. 2-14