The PRM™ Qualification Information Evening

The Professional Risk Manager (PRM) Certification Nawal Roy Founding director of PRMIA, Member of the PRM Education Committee and New York Steering Committee

PRMIA – The Global Organisation The Professional Risk Managers’ International Association (PRMIA) represents over 52,000 risk management professionals Members represent Over 4,000 organizations Over 180 countries More than 60 local chapters offer 200 open meetings annually PRMIA is a member-led, grass-roots organization Code of Ethics for Risk Professionals Governance – owned by members

PRMIA London – The Risk Association for the City Over 11,500 members in the London chapter All segments of FS industry – Commercial & Investment Banking, Insurance, Fund Management, etc. Practitioners, consultants, academics and regulators. Run by industry professionals on pro bono basis Heads of credit, market and operational risk from leading firms. Representatives from vendors and consultancies Regular seminar program – 15 events in 2007 Speakers included CROs, top regulators and academics Frequent industry conference speakers without the big fees! Training program launched to complement existing seminar series.

The PRM Qualification Aim To provide a common educational baseline for all Professional Risk Managers in the Financial Services Industry. What Statement of best practice “Everything you wanted to know about Risk but were afraid to ask” Foundations of Finance Theory and Financial Markets Basic mathematical tools Practical elements of credit, market and operational risk Case studies The essential concepts needed to communicate across the organization with other practitioners Why Objective proof of capabilities

For whom is the PRM intended? People who want to learn People who want to advance their careers Provides the essential knowledge to progress from Risk Analyst to Risk Manager Transferable across risk disciplines Cross-Over Credits Exam I: (Finance Theory, Financial Instruments and Markets) Canadian Securities Institute Financial Risk Management Graduates Chartered Alternative Investment Analyst Financial Risk Management Graduates Exam II: (Mathematical Foundations of Risk Management) Actuarial Associates Exams I & II: Certified Financial Analysts (CFA) Charter Holders Chartered International Investment Analysts Certificate for Financial Advisors (CeFA) Charter Holders Certificate in Quantitative Finance (CQF) Holders Actuarial Fellows

How Much Work is Involved? Four parts to the qualification (taken in any order) Finance 1½ hr exam Mathematics 2 hr exam Risk Management 1½ hr exam Case Studies 1 hr exam 120 total questions (20 questions an hour) Handbook has 46 chapters One chapter per week Can be completed in a year with commitment Up to two years allowed to pass all parts Gap of 4 months if an exam is failed

The Professional Risk Managers’ Handbook Over 40 Leading Authors In Use in over 105 Countries At 23 of 25 World’s Largest Banks And all 10 of World’s Largest Financial Service Companies The best reference source for financial risk managers Available online and in hardcopy

How do I take the exams? All exams are taken via Computer-Based Testing Nearly 4,000 Pearson test centers in over 140 countries Any working day of the year Minimal delay User-friendly registration system – customer focused Total flexibility

Prof. Luis Seco, Director of the Risk Lab at the University of Toronto PRM Academic Partners "A leading group of academics in renowned universities across the world have joined forces with PRMIA to organize and deliver essential training for those wishing to achieve professional qualifications. We have played an active role in the development of the PRM examination syllabus and we fully support this qualification.“ Prof. Carol Alexander, Chair of the Risk Management Department and Head of Research, ICMA Centre, University of Reading "When a professional industry organization gets the leading universities from 6 countries to join in an educational partnership, you are witnessing an event of galactic proportions. PRMIA has, in this fashion, defined the new paradigm for professional education and risk management practices for the 21st century.” Prof. Luis Seco, Director of the Risk Lab at the University of Toronto Columbia University Business School, Hong Kong University of Science and Technology Masters of Science in Investment Management, Macquarie University Applied Finance Center, National University of Singapore Centre for Financial Engineering, Technical University of Munich – HVB Institute for Mathematical Finance, University of Michigan College of Engineering, and a consortium of faculty in Paris representing ESCP-EAP, HEC, Ecole Polytechnique, Sorbonne and Université Paris Dauphine

PRM Professional Endorsements “Professional development and certification within our industry is an imperative. Endorsing the PRMIA certification ensures we continue to set industry leading standards for our staff, which directly benefit our clients.” Dr. Ron Dembo, Founder of Algorithmics “The PRM qualification is one of the best things that PRMIA has done for the risk profession.” David French, Bank of America, London "PRMIA is the international leader in risk management certification and CSI wholeheartedly endorses its PRM designation." Roberta Wilton, Ph.D, President & CEO, Canadian Securities Institute, Toronto, Canada Ernst & Young InteDelta IRIS Lombard Risk MB Risk Management Misys Moody’s KMV SunGard SYSTEMIC Vivisimo

10 Reasons to Choose PRM Global - Offered in over 140 countries Flexible - PRM exams can be taken any business day of the year and in any order you wish Comprehensive - Because the PRM is broken into four exams you cannot use strength in one area to cover weaknesses in other areas Affordable - Not all economies are alike, so those who earn less than US$25,000 per annum are eligible to apply for the PRM scholarship. The PRM Handbook - The PRM Handbook is available anywhere in the world that has access to the Internet

10 Reasons to Choose PRM continued..... Endorsements - Many companies have put their brand names on the line by publicly endorsing the PRM exam Recognition of Other Achievements - We provide partial credit to those that have demonstrated their skills through attaining designations like the CFA, FSA, ASA and others No Maintenance Fees - Just because you are successful doesn't mean that PRMIA should earn an annuity. You won't need to pay us anything to keep your designation active Quality - Because the PRM is delivered via computer, in controlled testing facilities, we are able to monitor questions so that they truly reflect our syllabus and desired degree of difficulty Respect - The PRM is the most challenging certification program for financial risk managers

Steve Block PRM Faculty

Outline The PRM Exams The 7city/ICMA Centre Faculty Evening Course Bootcamps Distance Learning How to Enroll

PRM Part I: Finance Weighting Exam IA: Finance Theory 35% IB: Financial Instruments 35% IC: Financial Markets 30% Exam Duration: 2 hours Number of Questions: 36

PRM Part II: Mathematics Weighting IIA: Foundations 5% IIB: Statistics 10% IIC: Calculus 20% IID: Linear Algebra 20% IIE: Probability 25% IIF: Regression 10% IIG: Numerical Methods 10% Exam Duration: 2 hours Number of Questions: 24

PRM Part III: Risk Weighting Exam IIIA: Market Risk 33% IIIB: Credit Risk 50% IIIC: Operational Risk 17% Exam Duration: 1.5 hours Number of Questions: 36

PRM Part IV: Case Studies and By-Laws Weighting Case Studies 80% By-Laws and Code of Conduct 20% Exam Duration: 1 hour Number of Questions: 24

Exam Exemptions The PRM program currently recognizes the following other professional designations and gives partial credit towards completion of the requirements for the PRM certification.

The PRM Faculty comprises top industry trainers and Handbook authors Azmi Özünlü Jacques Pezier Moorad Choudhry Carol Alexander John Board Steve Block Ehsan Nikbakht Andrew Spieler

For further details, please email: 7city Scholarship Three scholarship places are available for candidates wishing to enroll in the PRM program. For further details, please email: prmscholarship@7city.com

Choose Between Three Modes of Learning Evening Course Intensive Bootcamps Distance Learning: either Live London lectures, or DVD recorded lectures

Choose Between Three Modes of Learning Evening Course Intensive Bootcamps Distance Learning: either Live London lectures, or DVD recorded lectures

London Course (and Live Distance Learning) Lectures: at 7city premises Live and recorded webcasts Learning Management System: Diagnostic tests Worked examples Other supporting materials

London Lectures Live and recorded webcasts

Lecture Notes

PRM Portal Diagnostics tests: 10 questions on each lecture

PRM Portal Excel Files

PRM Portal Captivate Screen-grabber: Excel demonstrations

PRM Portal Worked Examples

PRM Portal Other Supporting Materials

Enrolling by Distance Learning? Live distance learning offers: Lecture participation via web and teleconference Live interaction with instructor and full access to recorded sessions E-copy of PRM handbook Exactly the same worked examples and diagnostics tests and other support materials as New York based course hosted on PRM Portal. ILE distance learning offers: Flexibility to study according to your own needs and at your own pace Four elements of learning: Lectures, demonstrations, worked examples and diagnostics tests

Distance Learning Interactive Learning Environment (ILE) Studio recorded lectures on DVD PRM Portal hosting: Captivate demonstrations Worked examples Diagnostics tests

Schedule for New York Course

Schedule for New York Course

Schedule for New York Course

Bootcamps Intensive one-week full-time course Covers all four exams Fee includes handbook and lectures

Next Steps… Read the comprehensive brochure Visit the website: www.7city.com/prm View a sample lecture Talk to members of the faculty Contact 7city: Email: usclientservices@7city.com or Geoff Brown at G.Brown@7city.com