IRM's global Enterprise Risk Management exams: Career Guide for Students and Professionals

What is Enterprise Risk Management (ERM)?

Risk is part of every business, from financial crisis to the pandemic, cyber threats to supply chain disruptions and fake news to talent issues. The risks facing organisations are real, and there is an increasing demand for skilled and qualified risk-intelligent professionals in every department who can help improve organisational resilience in an ever-evolving global landscape. According to the Institute of Risk Management (IRM), ERM is an integrated and joined-up approach to managing risks across all departments of an organization (irrespective of any sector) and its extended networks. ERM has the potential to create sustainable business growth for organisations of all sizes and across industries.

How is ERM different from traditional risk management?

ERM covers detailed study of the identification, assessment, and mitigation of over 300 areas of risks including geopolitical and country risks, financial and operational risks, technology and cyber risks, environmental and sustainability risks, social and people risks, governance and compliance risks and other risks like reputation, branding, marketing, and supply chain. Financial risk management or traditional risk management is restricted to study of financial risks alone.

Given the upsurge in business failures, dynamic regulatory landscape, and complex changes impacting businesses, including unforeseen events like COVID-19, the recent wars, climate change and series of cyber-attacks, organisations are recognizing the importance of ERM and IRM-certified risk-intelligent individuals who can build resilience across functions and be prepared with responses through a culture of risk-based decision making.

Earning the ERM designations - Certification Track from Level 1 to 5:

IRM, headquartered in the United Kingdom, is the world leading professional body for ERM  qualifications and examinations (Level 1 to Level 5) and the only body to provide a pathway to a Certified Fellowship in ERM. IRM has been driving excellence for over 35 years across 143 countries with 5000+ examination centers worldwide. With the IRM India Affiliate, students and working professionals can now appear for the examinations from anywhere India. IRM’s 5-Level professional qualifications with designations at each stage after Level 2, are universally applicable across industries and can be pursued simultaneously by students alongside their graduation / post-graduation and by professionals alongside their work.

Given the universal applicability and relevance of risk management, students from any background (including technology, engineering, business, law, accounting and marketing for example) can begin their journey with the Level 1 ERM foundation exam after 12th grade alongside their UG / PG studies and with this Level, will develop risk identification and complex problem-solving skills. Working professionals from any background (any business function including audit / risk or smaller family businesses or entrepreneurs) can register for the IRM’s Level 1 ERM foundation exam while working. While the Level 1 exam is recognised across the globe, the same has been recently evaluated by AICTE, Ministry of Education, Government of India,

Working professionals with two years’ experience in risk management can directly start with the Level 2 Global ERM qualification with an option to choose from general ERM versus Financial Services ERM and opportunity to appear for the exam at over 300 exam centers in India. The Level 3 qualification is at par with an international master’s and candidates must submit an online dissertation or project.

Candidates are conferred professional designations at every stage after Level 2 i.e., IRMCert (Level 2); GradIRM (Level 3); CMIRM (Level 4); CFIRM (Level 5). The Fellowship at Level 5 is the highest grade in IRM. The designations awarded by the IRM, are the world's most highly respected titles for ERM professionals. Achieving success in ERM, after passing IRM's rigorous qualifications and demonstrating relevant work experience, signifies expertise and proficiency of the essential knowledge and skills needed to manage enterprise-wide risks across sectors and economies, including cybersecurity, supply chain, climate change, reputation, and more.

Apart from the 5-Level pathway, IRM also offers the Digital Risk Management (DRM) Certificate Exam developed in affiliation with The University of Warwick which explores digital disruption and equips individuals with the tools and techniques to apply their skills in an increasingly digital world. The DRM Exam can also be taken at any of the 300 exam centers in India.

Careers in ERM after passing IRM’s Global ERM Exams:

Pursuing a career in ERM promises both rewarding experiences and invigorating challenges. By navigating organizational risks, you have the power to profoundly influence a company's trajectory towards success. To excel in this field, one needs a blend of technical acumen, strategic foresight, and exceptional communication skills. If you're passionate about dissecting intricate issues, making data-driven decisions, and fostering collaborative risk management, then ERM could be your ideal career avenue.

However, even if you are not keen to get into the core risk management function, today, every individual is expected to be risk manager in their own domain, and risk-literacy is one of most sought after skill with organisations preferring risk-intelligent employees, leaders and entrepreneurs over domain experts and that’s where the IRM’s Level 1 and Level 2 exam helps you become a better business leader. SEBI, IRDAI, RBI, Ministry of Corporate Affairs and regulatory bodies around the world have mandated the setting up of an ERM process, formation of risk management committees, reporting of risk management disclosures and appointment of Chief Risk Officers for various companies thereby opening up multiple opportunities in this sector. With average salaries (according to publicly available data) ranging from INR 5 lakhs per annum to INR 2 crores per annum for a qualified CRO, here are some career options:

Corporate jobs by working in any department as a risk intelligent manager / head
Work in the risk management, audit, or compliance function to rise to the role of CRO where your responsibilities may include developing risk management frameworks, conducting risk assessments, implementing risk mitigation strategies, monitoring and reporting on risks, and ensuring compliance with relevant regulations and standards
Set up risk management in family business, startup or MSMEs
Risk consulting or risk advisory roles with accounting and consulting firms
Starting your own risk advisory practice / firm
Risk based due diligence / research in PE / Investment Banking
Working in risk-tech.

Benefits of earning the Certification:

IRM-certified professionals understand all areas of risks, they are proficient in risk-based decisions and demonstrate complex problem solving, analytical thinking and an excellent negotiation and stakeholder management skills and help convert risks into opportunities.

Our certified professionals come from reputed Universities and diverse educational backgrounds and work across all industries, in the public, private and not for profit sectors including organisations such as World Bank, Tata Steel, LinkedIn, Target, NATO, Bandhan Bank, Hindustan Zinc, EY, Kuwait Petroleum, NTPC, Airbus, PwC, Deloitte, McKinsey, KPMG, Tata Consulting Engineers, Bosch, HDFC Ergo, Axis Mutual Fund, State Street, Cipla, Capital One, ANZ Bank, Teva Pharma, Societe Generale, BDO, Barclays, Netflix, HSBC, BBC, TCS, Marsh, Oil India Limited, Turner and Townsend, World Health Organisation (WHO), Canada Life, Tesco, Reliance Jio, Tata Communications, Bajaj Electricals, UNITAR, GSK and several other reputable organisations.

A few of the key benefits of joining the IRM are detailed below:

 1) Join an exclusive global network of qualified ERM professionals / business leaders / chief risk officers across 140 countries

 2) Digital access to a variety of resources including the leading ERM magazine at no cost

3) Attend free global webinars in over 40 risk themes

4) Network with fellow professionals across the world and in India who have earned the IRM designation

5) Contribute to research and education activities of the Institute

6) Attend local chapter meetings

7) Elevate your profile with the gold standard ERM designations.

Where to start?

You can start by exploring the Certification Track here and also watch this explainer video here. Once you are ready, you can connect with the ERM Exam Counsellor by dropping an inquiry here.

Moneycontrol Journalists were not involved in the creation of the article.