2018

ERP
CANDIDATE GUIDE

ENERGY RISK PROFESSIONAL garp.org/erp

TABLE OF CONTENTS

1 Introduction

4 Using the ERP to

Enhance Your Career

6 Exam Development,
Structure, and Content

9 Registration

11 Preparation

14 Sitting for the

ERP Exam

16 Frequently Asked
Questions
 2018 Energy Risk Professional (ERP) Candidate Guide

Introduction
Since its launch in 2009, the Energy Risk Professional (ERP) certification
has set the global standard for energy risk management. As the worlds
first and only designation developed by energy risk practitioners, for
energy risk practitioners, the ERP objectively benchmarks your skills and
knowledge of the tools and techniques used to measure and manage
energy risk.
The ERP Exam Part I covers key
The ERP challenges candidates to understand and apply a wide range topics related to commercial
of knowledge and skills necessary to effectively manage energy risk. operations in the following energy
Its curriculum is updated annually by a group of distinguished energy markets:
professionals and leading academics with diverse backgrounds, ensuring } Crude Oil and Refined Product
that the designation meets the evolving demands of the energy industry. Markets
} Natural Gas and Coal Markets
Currently, more than 1,500 certified ERPs are employed internationally in } Electricity Markets and Power
a range of industry sectors, including crude oil exploration, production, Generation
and refining; power generation and distribution; renewable energy
project development; commodity trading; asset management; consulting; The ERP Exam Part II focuses
technology; and market regulation. on the application of the tools
acquired in the ERP Exam Part I
By earning your ERP certification, you will be joining a global network through a deeper exploration of:
of professionals across the energy industry. Moreover, employers know } Financially-Traded Energy Products
that ERPs have the knowledge needed to anticipate and respond } Risk Assessment and Energy
to critical issues, providing them with an edge in their career and Price Modeling
professional development. } Risk Management Tools

THERE ARE CURRENTLY MORE THAN

1,500
PRACTICING ERPS
ACROSS 75 COUNTRIES

www.garp.org/erp 1
 Becoming a Certified ERP
The ERP has been The first step to becoming an ERP is passing a rigorous, two-part exam.
Both parts of the ERP Exam are offered twice a year, in May and November.
crucial to allowing
Once you pass the ERP Exam Part I, you have four years to pass Part II.
me to ask the right
questions, carry on After passing both parts of the ERP Exam, you must demonstrate
conversations with a minimum of two years of full-time work experience in energy risk
management or a related field to complete your certification. Related
clients, and dig even
work experience may include: trading, portfolio management, research,
further into the economics, auditing, consulting, engineering, technology, regulation, and
industry I love. academia. If you have questions about whether your work experience
qualifies, please contact memberservices@garp.com.
-JASON WILLIAMS, ERP
COMMODITIES DERIVATIVES
SPECIALIST, TRADITION Once certified, ERPs are required to keep pace with the numerous forces
ENERGY (SINGAPORE) impacting the global energy markets by participating in our Continuing
Professional Development (CPD) Program. The program offers ERPs a
framework for enhancing their skills and knowledge on an ongoing basis,
and requires them to earn 40 credit hours every two years.

Earn your ERP Certification

1 ERP Exam Part I

4 hours/80 multiple
3 Demonstrate 2 years of
related work experience
choice questions

2 ERP Exam Part II

4 hours/60 multiple
4 Mandatory continuing
education 40 hours/2 years
choice questions

2 Introduction
 2018 Energy Risk Professional (ERP) Candidate Guide

Who should consider the ERP certification?

All Energy Professionals

The ERP helps professionals working in the energy markets to broaden
their knowledge of the complex energy value chain and its interconnection
with financial markets. It will help sharpen their ability to identify, analyze,
and manage risk, and will help them keep pace with emerging industry
trends, particularly in areas where they lack direct professional experience.

If you are at the start of your career, earning your ERP is an excellent way
to demonstrate that you possess the knowledge and skills necessary to
take on additional challenges and responsibilities in the energy space, and
to differentiate you from your peers.

Career Changers
If you are considering a career change to energy, becoming an ERP can
accelerate your career. Professionals from non-finance, non-risk, or non-
energy roles become ERPs in order to develop specialized, practical
knowledge that can be applied in the global energy market. Undertaking
the rigorous course of study to become an ERP signals your commitment
to understanding energy markets to potential employers.

Students
If you are a student interested in a career in the energy industry, you may
elect to sit for the ERP Exam during or immediately after completing your
studies. The ERP Program can complement your prior coursework or help
you develop a foundation of specialized knowledge that goes beyond your
university curriculum. Engaging with the ERP Program underscores your
dedication to learning about the energy marketplace to prospective
hiring managers.

www.garp.org/erp 3
Using the ERP to
Power Your Career
ERPs have a competitive
advantage that allows them to
accelerate their careers across
many facets of the energy space.
By passing the Exam, ERPs have
demonstrated a mastery of the
knowledge and tools required to
manage the challenges associated
with the rapidly changing energy
markets, helping them stand out
to employers.
Mastering the ERP curriculum
requires discipline and represents
a significant commitment to
the energy markets and the
risk management profession.
Because of this, ERPs are
considered leaders in the industry
with a strong commitment to
professional excellence. Using the
designation in your professional
communications emphasizes your
accomplishment, and sets you
apart in a competitive market.
Companies currently employing the most ERPs:
EDF
Shell
Sapient
4 Introduction
Using the ERP in Your Career
} Integrated Oil & Gas Companies
Assess and manage commercial operations and risk exposures associated
with crude oil, refined products, and gas.
} Electricity Generators & Power Utilities
Assess and manage commercial operations and risk exposures associated
with power generation, transmission, distribution, and marketing.
} Renewable Energy Companies
Evaluate project economics, commercial operations and related risks
associated with renewable power installations and their integration on a
power grid.
} Commodity Trading, Scheduling, Structuring, and Origination
Apply knowledge of physical transport, storage, and product processing
to assess market opportunities.
} Consulting
Leverage insights about the energy market value chain to satisfy client
objectives across a variety of projects, including technology applications,
strategic planning, and financial analysis.
} Research & Investment Management
Apply knowledge of market fundamentals and technical trends to inform
investment decisions.
} Financial Control
Apply analytical skills and market perspective to understand how the full
scope of commercial operations are aggregated in complex accounting,
finance, and reporting systems.
} Treasury
Assess company liquidity policies and manage corporate funding needs.
PwC BP TransAlta
EY ENGIE Gazprom
Deloitte FERC DTE Energy
Exam Development,
Structure, and Content
Exam Development
Development of the ERP Exam and its underlying curriculum is guided
by GARPs Energy Oversight Committee (EOC), a panel of senior
practitioners and academics with practical market experience. Readings
and topics covered in the curriculum are updated annually in conjunction
with the EOC to ensure the Exam remains a timely and accurate
assessment of the knowledge and skills required of an energy risk
practitioner. To further align with industry needs, the ERP Exam is created
in close consultation and collaboration with practicing ERPs active across
a variety of disciplines and geographies. Exam questions combine theory
and real-world work experience drawn from market insights shared by

MORE THAN EOC members and practicing ERPs.

90%
OF CANDIDATES
Exam Structure
Completion of the self-study curriculum culminates with candidates
sitting for the ERP Exam, a two-part, multiple choice exam. The ERP
WHO HAVE SAT Exam Part I and the ERP Exam Part II are comprised of 80 and 60

FOR THE ERP EXAM questions, respectively. Candidates are allotted four hours to complete
each exam and have the option to complete both parts in one or two
SINCE 2009
exam cycles. The exams are offered in American English twice a year, in
HAVE INDICATED May and November, at approximately 100 exam sites around the world.
THEY WOULD
RECOMMEND
THE ERP.

6 Exam Development, Structure, and Content

Exam Content
The ERP Exam is a comprehensive, practice-oriented assessment that spans both the physical and financial
energy markets. As such, candidates are expected to demonstrate an understanding of important concepts
across several broad areas of study. The 2018 ERP Exam topics are weighted as follows:

ERP Exam Part I ERP Exam Part II

Topics and Weights
} Crude Oil and Refined Product Markets | 40%
Physical properties of crude oil
Exploration, production, and project development
Transportation and storage economics
Crude oil refining
} Natural Gas and Coal Markets | 25%
Physical properties of natural gas and coal
Transportation and storage economics
Global natural gas markets and economic fundamentals
Global coal markets and economic fundamentals
} Electricity Markets and Power Generation | 35%
Properties of electricity
Electricity market economics
Investing in generating capacity including renewables
Electric energy markets and trading
Global electricity market and economic fundamentals
Emission reduction programs and regulation
Topics and Weights
} Financially Traded Energy Products | 30%
Physical energy commodity markets
Physical versus financially-settled transactions
Structure and operation of exchange-traded
and over-the-counter markets
Energy derivative contracts
Hedging techniques and cash flows
} Risk Assessment and Energy Price Modeling | 20%
Quantitative tools for risk analysis
Energy commodity price formation
Modeling energy prices
} Risk Management Tools | 50%
Market risk valuation and management
Credit and counterparty risk assessment
Operational risk and ERM
Business ethics and GARP code of conduct

www.garp.org/erp 7
Registration
In 2018, the ERP Exam will be offered on May 19 and November 17.
The cost to register for the Exam varies based on the registration
period, and you can register on our website.

Exam Registration Fee

Fees can be paid in one of three ways: via secure online payment,
by check (if drawn on a US bank and payable in US dollars), or by
wire transfer.
MORE THAN
Enrollment Fee
The enrollment fee (US $400) covers the cost of administration of
1,200
the Exam for first-time candidates, and does not include the cost of CANDIDATES
study materials. Upon enrollment, all first-time candidates are given REGISTERED
a one-year Individual Membership, a value of US $195.
FOR THE ERP
EXAM IN 2017.

Pricing

Early Registration New Candidate Returning Candidate

Dec. 1, 2017 Jan. 31, 2018 $750 $350

May 1, 2018 Jul. 31, 2018 $750 $350

Standard Registration

Feb. 1, 2018 Feb. 28, 2018 $850 $450

Aug. 1, 2018 Aug. 31, 2018 $850 $450

Late Registration

Mar. 1, 2018 Apr. 15, 2018 $1050 $650

Sep. 1, 2018 Oct. 15, 2018 $1050 $650

Other fees may apply. All rates in USD.

www.garp.org/erp 9
Exam Locations
The ERP Exam Part I and Part II are offered in person at more than Important
100 exam sites around the world. While the cities generally remain Steps
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
Scholarships Bring a government-issued
GARP offers a scholarship program, open to full-time graduate- passport or drivers license
level students and university faculty taking the ERP Exam bearing your photograph;
Part I.All scholarship candidates must register and pay the It must be original, current
and valid on Exam day.
enrollment fee and exam registration fees prior to submitting their
application.Candidates who are awarded a scholarship will be
refunded the cost of the exam registration fee only. More Policies
information on eligibility and the application process can be found
Familiarize yourself with
on GARPs website.
the full list of ERP Exam
deadlines and policies
Deferrals listed online.
An ERP candidate may only defer each exam registration once to the
next exam date. Please note:
Locations

} A deferral to the next exam date must be submitted by the last You may view the full
day of registration. For example, the last day of registration for the list of examination sites
around the world on the
May Exam is April 15, and for the November Exam, the last day of
GARP website.
registration is October 15.
} There is an administrative processing fee of US $150 that
accompanies each exam deferral. This fee is payable by credit card Accommodations
at the time of your deferral request. The deferral fee is also payable
by wire transfer or check for an additional processing fee of US $50. You may request a
Religious Alternate
} Readings are updated every year. Deferring your Exam may require
Date (RAD) or a special
obtaining a new set of study materials. accommodation in
accordance with the
Americans with
Disabilities Act (ADA).

10 Registration
Preparation
GARP provides study resources, practice exams, and information on
approved, third-party Exam Preparation Providers to help you get ready
for the Exam. Due to the sizable amount of material covered in the Exam,
we suggest that you create a weekly study schedule to spread out study
hours over an extended period. Preparing for the Exam at the last minute is
strongly discouraged.

Preparation time will vary based on your prior professional experience,

academic background, and familiarity with the concepts tested on
the curriculum.

Study Materials
} The ERP Books cover readings and key themes that make up the core of
the ERP curriculum. Exam questions are based solely on the material in
the current years ERP curriculum and Learning Objectives, making the
books essential for Exam preparation. Online readings are part of the
curriculum and will be tested.

} The ERP Study Guide summarizes all recommended readings for the
ERP Exam. Key concepts are listed as bullet points at the beginning of
each section, and are intended to help you identify the major themes and
categories associated with a particular section.

} The ERP Learning Objectives contain information and approximate

weightings for each of the broad knowledge domains covered by the
Exam, specific curriculum readings associated with each knowledge
domain, and individual learning objectives for each reading. Every ERP
Exam question maps to at least one learning objective, making the ERP
Learning Objectives document a vital study resource that should be
consulted regularly during exam preparation.

AVAILABLE
ON GARP.ORG/ERP

www.garp.org/erp 11
 } The ERP Practice Exams give examples of the types of questions
featured on the Exam, and will allow you to estimate how much time
you can expect to spend on each question. Each Practice Exam contains
questions, answer keys, and detailed explanations for all answers. It is
strongly recommended that candidates replicate exam day conditions
when taking a Practice Exam.

Having an ERP
} The GARP Study Center app allows you to structure your study time,
demonstrates that
track your progress, and take practice questions.
a candidate has the
necessary skills to better } The recommended Study Plan, consisting of 15 learning modules, offers
understand risks in the a guide for exam preparation. It is available for free on our website. We
energy supply chain and encourage you to use this study plan as a foundation for your studies,
and to modify it based on your strengths or weaknesses.
how these interact with
the financial, market and
Exam Preparation Providers
regulatory environment. You may wish to study with the assistance of an ERP Exam Preparation
Provider (EPP), an officially recognized organization that may offer courses
-SUNILKUMAR RAMAKRISHNAN,
online or in person.
ERP, PRINCIPAL AND HEAD OF
COMMODITIES AND ENERGY
TRADING RISK MANAGEMENT,
GARP provides a list of approved EPPs on our website as a service to ERP
KPMG (LONDON)
candidates*.

Study Groups
While the ERP curriculum is designed to be a self-study program,
many find that studying with their peers positively impacts their exam
preparation. You can connect with other candidates to form study groups
by joining our Facebook or LinkedIn groups. Alternatively, many GARP
Chapters facilitate study group sessions that enable ERP candidates in the
same city or region to meet each other. To see if a Chapter is hosting an
event near you, please visit the Chapters section of our website.

*Please note that GARP does not endorse, promote, review, or warrant the accuracy of the products or services offered
by providers of ERP-related information, nor does it endorse any pass rates claimed by an EPP. Further, GARP is not
responsible for any fees or costs paid by the user to an EPP.

12 Preparation
Sitting for the ERP Exam
C
The only 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)
14 Sitting for the ERP Exam
What to Bring on Exam Day
} Printed Exam Admission Ticket (a digital Admission Ticket will not
be accepted)
} Current (non-expired), original, valid, government-issued passport or
drivers license with a photo.
} Approved calculator with cleared memory. If you use an
unauthorized calculator, your Exam may not be graded.
Identification
Only a current, valid, original government-issued passport or drivers
license, which must include your photograph, will be accepted for
identification purposes on exam day. The name on your passport or
drivers license must be exactly the same as the name on your exam.
Optional
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 Exam.
} Wallet (or money purse) } Earplugs
} Extra calculator, batteries } Medicine
and calculator case } Tissues
} Eyeglasses } Other medically necessary items
You do not need to bring pencils. Two wooden pencils will be provided
at the start of the Exam and more will be provided if necessary.
Food and drink containers may not be opened in the testing room.
All food and drinks must be consumed outside the testing room.
 2018 Energy Risk Professional (ERP) Candidate Guide

Prohibited Items
To maintain the integrity of the testing process, no electronics, including
wearable technology, are permitted inside the exam room. Additionally,
baggage of any kind, writing instruments, and pencil cases may not be
brought into the testing room. A designated area for these items will be
provided. You will not have access to them during the Exam. A full list of
permitted and prohibited items, as well as what to expect on exam day, can
be found on the GARP website.

Exam Duration
Each part of the ERP Exam is four hours long. The ERP Exam Part I
consists of 80 multiple-choice questions and Part II consists of 60
multiple-choice questions. Part I is offered in the morning session and
Part II in the afternoon session of each exam administration. For more
information, visit our website.

Scoring the Exam

There are no penalties for incorrect answers. You must pass the ERP Exam
Part I first before the ERP Exam Part II will be graded.

Exam Violations
GARP critically reviews every Exam Incident Report filed on exam day. The
list below are only a few of the violations that have resulted in a candidates
Exam not being graded:
} Arriving with invalid identification
} Cellular devise ringing in the exam room
} Bringing in and using an unauthorized calculator
} Opening an exam booklet before instructed to do so
} Writing before instructed to do so
} Continuing to write after STOP WRITING has been announced

Exam Results
Candidates are notified via email the availability of their exam result
within six weeks of the exam date. Candidates will receive only a pass/
fail notification, including quartile rankings comparing their results to their
peers. There is no numerical score available for review.

www.garp.org/erp 15
Frequently Asked Questions
Q. How much time do I need to prepare for the Exam?

A. Your preparation time will vary based on your experience and background, but on average, candidates spend
about 250 hours studying. In a recent survey, individual reports varied from less than 100 to more than 400 hours.

Q. How much work experience do I need to sit for the Exam?

A. No work experience is required to sit for the Exam; however, you must have at least two years of professional
work experience to complete your certification and use the ERP designation.

Q. How quantitative is the Exam?

A. The ERP Exam does have a quantitative component, but the concepts are presented in real-world situations. The
level of mathematical difficulty is on par with an advanced undergraduate or introductory graduate level finance
course at most universities.

Q. What is the difference between the ERP and the Chartered Financial Analyst (CFA)?

A. The two designations attest to different skills and aspects of your capabilities, and complement each other
well. The ERP is focused on commercial operations within each energy market from a risk perspective. The CFA
provides an overview of financial topics, but does not cover energy markets or risk in the same perspective, like
the ERP. Many professionals choose to demonstrate their mutual competencies by earning both complementary
designations.

Q. Do you offer any exemptions for either part of the ERP Exam?

A. No, we do not offer exemptions and cannot accept other designations in partial fulfillment of our requirements.
In order to obtain a true, objective representation of your risk energy market and management competency, we
cannot rely on assessments performed by other designation-granting organizations.

16 Frequently Asked Questions

 2018 Energy Risk Professional (ERP) Candidate Guide

Q. In what languages can I take the Exam?

A. The Exam is administered in American English only. We work hard to ensure all questions and instructions are
written clearly and concisely, and to avoid the use of colloquialisms that might be unfamiliar to non-native
American English speakers.

Q. Do I have to be a GARP Member to sit for the Exam?

A. No, you do not have to be a Member to register or sit for the Exam. As part of your initial enrollment in the
ERP Program, you will receive a one-year GARP Individual Membership and all its privileges, which can be set
to renew automatically during your registration. Certified ERPs are offered a discounted membership rate in
recognition of their professional achievements and dedication to best practices in financial risk.

Q. Is continuing education mandatory for Certified ERPs?

A. Yes. A mandatory Continuing Professional Development (CPD) program helps to ensure Certified ERPs remain
up to date with industry developments, market trends, and best practices. ERPs participate in CPD by earning
40 credits for relevant educational activity every two years.

www.garp.org/erp 17
About GARP

The Global Association of Risk Professionals (GARP) is a

non-profit organization that promotes best practices in risk

management through education, training, media, and events.

Our programs and services address the critical need for risk

education that keeps pace with a rapidly evolving industry,

and provide expert knowledge and global networking

opportunities to risk professionals in more than 190 countries

and territories worldwide. Our certifications are the most

highly respected designations in risk around the world,

and our courses provide professionals with the essential

knowledge they need to identify, assess, and manage risk.

garp.org/erp
Creating a culture of risk awareness

garp.org
The Global Association of Risk Professionals (GARP) is the leading
association dedicated to the education and certification of risk
professionals, connecting members in more than 190 countries and
territories. GARPs mission is to elevate the practice of risk management
at all levels, setting the industry standard through education, training,
media, and events.

2017 Global Association of Risk Professionals. All rights reserved. (11.20.17)