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Transcript of Erp Candidate Guide 2015
ERPCandidate Guide
2015
1
The ERP was developed in 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 comprehensively assess a candidate’s 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 risk-related professional
experience to become certified as an ERP. A mandatory
continuing education program helps ERPs guide their pro-
fessional 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 in the energy industry or are
interested in transitioning to a career in energy, earning
the ERP designation can help accelerate your career and
professional 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 considered for assignments of increasingly higher
responsibility.
The ERP Exam is developed 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 financial
energy markets.
the ERP curriculum covers:• Exploration, production, transportation, storage,
refining, processing, and distribution of physical energy
commodities
• Structuring and valuation of financially traded energy
products
• Identification and management of market, credit, and
operational risk
The Energy Risk Professional (ERP®) designation is the only global certification for risk professionalsin the energy field.
ERP® CandidatE GuidE | OvERviEw
The ERP Program is a career-long professional
resource that helps ERPs remain current with
the demands of the energy industry.
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 certi-
fication exam.
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 prereq-
uisites to register for the ERP Exam.
After achieving a passing score on the ERP Exam, a candidate must satisfy
a work experience requirement in order to be certified. 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: trading, portfolio management, faculty academic, industry research, eco-
nomics, auditing, risk consulting, and/or risk technology. A list of job titles
that GARP uses for ERP certification purposes is available on our website.
Once certified, ERPs are required to further their skills and knowledge through
a mandatory Continuing Professional Development (CPD) program. GARP’s
CPD program provides 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 optimization of physical assets, enterprise risk manage-
ment, fundamental supply and demand trends in physical energy commodity
markets, and compliance with new accounting and regulatory initiatives. The
CPD program requires 40 credit hours to be earned every two years.
ERP Exam8 hours/140 questions
demonstrate 2 Years Related work Experience
CertifiedEnergy Risk Professional
Mandatory Continuing Education 40 hours/2 years
2
in 2014 ERP candidatescame from 70 differentcountries acrossthe globe
2014: 1300+ registrations for theERP Exam
Top 7 countries/regionswith the most ERPs: United States—33%, UnitedKingdom—10%, Canada—9%,India—7%, Singapore—6%,Switzerland—6%, Germany—5%
{organizations with
3 or more candidates
register for the ERP
Exam since 2009
300+
Registration has grown
an average of
per year since 201017.5%&
4
GARP’s Energy Oversight Committee (EOC), a panel of the
leading energy risk practitioners worldwide, supervises the
development of the ERP Exam. Current members include
practitioners with expertise in risk consulting, risk manage-
ment, 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 summa-
rized in the ERP Program Manual.
ERP Exam StructureThe 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 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 ContentThe ERP Exam is a comprehensive, practice-oriented as-
sessment that spans both the physical and financial energy
markets. Candidates are expected to demonstrate an under-
standing of important concepts associated with several
broad areas of study.
The content and question allocation for the 2015 ERP Exam
has been structured to balance intellectual rigor against
exam validity and reliability, two important characteristics
of any professional certification exam.
The test weights for the 2015 ERP Exam are as follows:
PHYSICAL ENERGY COMMODITIES AND ELECTRICITY—tOtaL wEiGHt: 50%
• Mineral Rights and Project development (5%) • Mineral rights and project development
• Project development and real options
• Crude Oil Markets and Refined Products (15%)• Crude oil production
• Global crude grades and global benchmarks
• Crude oil transportation and storage
• Petroleum refining
• Unconventional Oil
• natural Gas and Coal Markets (10%) • Natural gas properties, transportation and storage
• Global natural gas markets and price dynamics
• Global coal markets
• Electricity Markets and Renewable Generation (20%) • Economics of electricity markets
• Cash markets for power trading
• Analytical tools and structured solutions for
electricity markets
• Global market design
• Renewable generation, integration and project
finance
The ERP Exam: Structure and Content
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
• TransAlta
COnSuLtinG FiRMS• Allegro
• Deloitte
• EY
• KPMG
• PwC
• Sapient
PuBLiC/GOvERnMEnt aGEnCiES• Federal Energy Regulatory
Commission (FERC)
*Through December 31, 2013
5
FINANCIAL PRODUCTS AND RISK MANAGEMENT—tOtaL wEiGHt: 50%
• Financially traded Energy Products (15%)• Commodity trading and risk management
• Forward contracts and exchange traded futures
• Energy commodity swaps
• Options and option strategies
• Natural gas and crude oil market dynamics
• Regulation of financially traded energy products
• data analysis and Market Risk (15%) • Data analysis tools and applications
• Market risk tools
• Energy spot price formation
• Energy price volatility and modeling
• Characteristics of energy commodity forward curves
• 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
6
Registration PeriodsCandidates 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 periods, which are
detailed in the “Fees’ section below.
FeesWhen registering for the ERP Exam for the first time, candi-
dates 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 enroll-
ment 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 pay-
ment, by check (if drawn on a U.S. bank and payable in U.S.
dollars), or by wire transfer.
The Exam Fee is the cost to sit for a particular exam. This
fee varies based on the registration period. Fees associated
with each registration period are as follows:
• Early Registration: US$450
• Standard Registration: US$575
• Late Registration: US$750
DeferralsAn ERP candidate may only defer exam registration 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 year to year.
More information on deferring the ERP Exam can be found
on GARP’s website.
Registering for the ERP Exam
In 2015, the ERP Exam will be offered on May 16, 2015 and
November 21, 2015.
BEFORE REGISTRATION: A CHECKLIST
Before registering for the ERP Exam, we suggest that you:
˛ Ensure that your passport or driver’s license will not expire by the date of the exam, and the name on your passport or driver’s license exactly matches the name under which you are registering for the exam.
• Only a current and valid passport or driver’s license, which must include a photograph of the ERP candidate, will be accepted for identification purposes. GARP will not accept work/employer identification cards, voter identification cards, PAN cards, a learner’s permit or even a student identification card.
• The name on your passport or driver’s license must be exactly the same as the name on your exam registra-tion. For example, the name 李学成 cannot be used to register for the exam; Xuecheng Li would be the correct name to use to register using the phonetic alphabet.
• We cannot list all forms of identification that are not acceptable. This is why we only accept an original country-issued passport or driver’s license for admission.
• Please visit our website for additional information on our ID policy, to ensure you are not turned away on exam day.
˛ Familiarize yourself with key ERP Exam deadlines.
˛ Learn about GARP’s exam policies.
˛ Decide where to take your exam.
˛ Review, understand and agree to GARP’s Code of Conduct and Candidate Responsibility Statement.
˛ Evaluate your need for special accommodations for Americans with Disabilities (ADA), or request an alternative exam date for religious reasons (RAD)
7
PASSPORT
COPYCOPYCOPYCOPY
DRIVER’S LICENSE
12/34/5678PERMANENT ACCOUNT NUMBER
8
Due to the sizeable 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. Cramming for the exam in the few weeks leading up to it is not recom-
mended. The time needed for exam preparation will vary from person to person
and will be based on a number of factors including an individual’s professional
experience, their general level of knowledge of the energy markets and reading
comprehension aptitude. For past exams, a majority of candidates report spend-
ing anywhere between 150 to 400 hours preparing for the exam.
Study Materials• The ERP Study Guide summarizes all required readings for the ERP Exam.
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 ERP Program Manual was developed to assist ERP candidates in their
preparation for the ERP Exam by outlining learning objectives and suggest-
ing strategies for completing the reading material detailed in the ERP Study
Guide. The manual also contains a sample 15-week study plan. It can be
downloaded from the ERP Study Center on GARP’s website.
• 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
candidate to estimate how much time they can expect to spend answering
individual questions. Each Practice Exam contains questions, answer keys,
and detailed explanations for all answers. It is recommended that candidates
mimic exam day conditions when taking each Practice Exam. Allocate 1.5
hours for each exam with only paper, pencil, calculator, and a timer.
ERP ExamStudy GuideThe designation for risk professionals in the energy sector
2015
2015
ERPProgram Manual
2015
ERPPractice Exam
Preparing for the ERP Exam
To help ERP candidates get ready for the ERP Exam, GARP provides study
resources, Practice Exams, and information on approved, third-party Exam
Preparation Providers.
9
• 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 production, distribution and trading of
physical energy commodities; the structure of worldwide electricity 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.
Exam Preparation ProvidersSome 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 Preparation Providers on our web-
site as a service to ERP candidates. 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 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 GroupsWhile 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 Profes-
sional 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.
2015
ERP ExamCourse PackVOLUME 1Mineral Rights and Project DevelopmentCrude Oil Markets and Refined ProductsNatural Gas and Coal Markets
2015
ERP ExamCourse PackVOLUME 2Electricity Markets and Renewable Generation
2015
ERP ExamCourse PackVOLUME 3Financially Traded Energy Products Data Analysis and Market Risk
2015
ERP ExamCourse PackVOLUME 4Credit, Counterparty, and Country Risk AssessmentEnterprise Risk Management and Business Ethics
10
Exam LocationsThe ERP Exam is a pencil and paper multiple-choice exam
offered exclusively in English. This in-person approach
ensures that there is fairness and consistency for all candi-
dates, globally. 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.
IdentificationUpon your arrival at one of the exam sites, only a current
and valid government-issued passport or driver’s license,
which must include a photograph of the ERP candidate, will
be accepted for identification purposes. The name on your
passport or driver’s license must be exactly the same as the
name on your exam registration. For more information, visit
the GARP website.
CalculatorsOnly GARP-approved calculators are permitted to be used
at the ERP Exam. Use of a non-authorized calculator during
the exam will result in the candidate’s answer sheet not
being graded, and the candidate will receive no score for
the exam. Candidates may not consult the operator’s man-
ual 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)
GARP’s calculator policy should be reviewed on the GARP
website in advance of exam day.
Prohibited ItemsIn order to maintain the integrity of the testing process,
no cameras, mobile phones (including smartphones or
iPhones), computers, pagers, headsets or PDAs are permit-
ted. Additionally, baggage of any kind such as backpacks,
handbags, tote bags, briefcases, 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.”
Sitting for the ERP Exam
The exam is offered in person at approximately 90 exam sites around
the world.
Duration of the ExamEach part of the ERP Exam is four hours long, for a total of eight hours.
The AM session consists of 70 multiple choice questions and the PM
session also consists of 70 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 ExamThere are no penalties for incorrect answers. The passing score is deter-
mined in conjunction with the Energy Oversight Committee.
Exam ViolationsGARP seriously reviews each and every exam Violation Report. Here are
some of the violations that have resulted in a Candidate Violation Report
being filed and, subsequently, a candidate’s exam not being 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 into the exam room
• Candidate was caught cheating
• Candidate violated GARP’s calculator policy
Exam ResultsExam 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.
What to bring on exam day:• Exam admission ticket• Current driver’s licence or
passport• approved calculator• #2 or hard black (HB) pencils
the following items may be carried in your pockets or in transparentplastic bags. Plastic bags must be placed under your chair andmay be accessed during the exam.• wallet (or money purse)• Calculator batteries • Erasers• Pencil sharpeners• Eyeglasses• Earplugs• Medicine• tissues • Other medically necessary or
personal items
Food and drink containers may notbe opened in the testing room. allfood and drinks must be consumedoutside 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, as well as their mastery in the measurement and man-
agement of energy risk.
Candidate TypesEnergy Professionals Professionals in the energy space leverage the ERP certification to broaden
their knowledge of the complex energy value chain, to sharpen their ability to
identify, analyze and manage risk, and to remain abreast of emerging trends
across the energy industry, particularly in areas where they have less direct
professional experience.
For younger energy professionals near the start of their careers, becoming a
ERP is an excellent way to stand out among their peers while demonstrating
a commitment to the energy industry.
Career ChangersCareer changers, such as those individuals previously working in non-finance,
non-risk, or non-energy roles, become ERPs in order to develop specialized,
practical knowledge in the rapidly growing global energy space. Undertaking
the rigorous course of study to become an ERP signals commitment to the
energy sector.
StudentsStudents with an interest in a career within the energy field 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 special-
ized 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 BenefitsStand out to current and prospective employersWhether 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
an ERP demonstrates your commitment to the energy mar-
kets. It empowers you with a knowledge framework for iden-
tifying 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.
Join an elite groupERPs join a lifelong network of similarly-minded risk man-
agement professionals, allowing you to expand your profes-
sional career opportunities within the worlds of finance
and energy. Candidates for the ERP designation work in a
number of industries, including:
• Energy companies—including oil, power, natural gas and
LNG, renewables
• Financial Institutions—including commercial and
investment banks, asset management firms, hedge funds
• Consulting firms
• Technology firms
• Government agencies
demonstrate your leadershipMastering the ERP curriculum requires discipline and repre-
sents a significant commitment to the risk management
profession and energy markets. Because of this, ERPs are
considered leaders in the industry with a strong commit-
ment to professional excellence.
Confirm your achievementsReal-world experience is an essential component of attain-
ing ERP certification. Candidates are required to demon-
strate related professional experience—so becoming a
Certified ERP means considerably more than passing an
exam.
Enhance your reputationAll 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 ERPs will help safeguard their firms’
reputations.
Join a Global Network—ERPs Come from 57 Countries:
Australia • Austria • Belgium • Brazil • Bulgaria • Canada • China • Cyprus • Czech
Republic • Denmark • France • Germany • Ghana • Greece • Hong Kong • Hungary
• India • Indonesia • Ireland • Italy • Jamaica • Japan • Kenya • South Korea • Kuwait •
Lebanon • Luxembourg • Malta • Namibia • Netherlands • New Zealand • Nigeria • Norway
• Pakistan • Philippines • Poland • Portugal • Qatar • Romania • Russian Federation •
Saudi Arabia • Singapore • Slovakia • Slovenia • South Africa • Spain • Sweden •
Switzerland • Taiwan • Thailand • 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 back-
grounds, and familiarity with the concepts tested on
the curriculum. It is difficult to recommend 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 prerequisites
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 certification 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 relationships covered in the core readings. Candi-
dates should be prepared to solve a number of mathe-
matical calculations based solely on their understanding
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 pro-
vided 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 require-
ments will expand, creating demand for highly trained
energy risk professionals. Earning your ERP designation
not only broadens your skill set, it demonstrates a stan-
dardized 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 for-
mation, 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 finan-
cial, operational and safety challenges not found in the
financial markets. A unique curriculum that integrates
knowledge about physical energy markets, financially
traded products used in energy trading and hedging
activities, and risk management applications all charac-
terize 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 colloquialisms 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 Exam.
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. ERPs are required to participate in the CPD program in
order to use their ERP professional designation. The CPD
program is based on 24-month cycles and participants
are required to earn 40 credits each cycle. As a general
rule, 60 minutes spent on an educational activity is equal
to one CPD credit.
Further information about the ERP Program and Exam can be found on GARP’s website, garp.org/erp, or you can contact GARP
directly with any additional questions at [email protected].
Frequently Asked Questions
About GARP
The Global Association of Risk Professionals (GARP) is
the only globally recognized professional association for
financial and energy risk certification and education. In
fulfilling our unique mission to elevate the practice 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 admin-
ister certification programs that reflect industry best
practices. A volunteer Board of Trustees, composed of
leading risk management practitioners from some of the
most prominent global financial firms and universities,
oversees our Association.
From its inception, GARP’s exclusive focus has been on
risk management. Maintaining this focus has enabled
GARP to develop unmatched expertise in risk, which we
transmit globally through our professional designations.
Through GARP’s 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 partnerships with top universities and busi-
ness schools.
To calibrate and benchmark its understanding of the
demands of the global risk management community,
GARP also conducts formal job task analysis surveys to
determine the knowledge, skills and abilities required to
function effectively as a financial risk manager around
the world.
GARP’s global leadership status in financial risk manage-
ment education is independently validated by the rapid
growth in the number of institutions having 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 ofRisk Professionals
111 Town Square Place14th FloorJersey City, New Jersey 07310U.S.A.+ 1 201.719.7210
2nd FloorBengal Wing9A Devonshire SquareLondon, EC2M 4YNU.K.+ 44 (0) 20 7397 9630
www.garp.org
© 2014 Global Association of Risk Professionals. All rights reserved. 12-24-14