Professional Risk Manager (PRM)

About this exam family

A risk manager needs to connect a position’s economics to the losses it can produce, the cash it may demand, and the controls that keep those exposures visible. This guide builds that connection from finance theory and instruments through market practice and quantitative methods, then applies it to enterprise, credit, counterparty, market, liquidity and operational risk. The worked examples use stated assumptions so you can follow each calculation and judge what its result does, and does not, establish. Pay particular attention to distinctions that change decisions: expected loss versus a stress loss, a mark-to-market loss versus a funding outflow, and diversification versus a hedge that fails under stress. The final sections bring those distinctions together in an applied case and in professional governance decisions.