OPERATIONAL RISK

MANAGEMENT
(ORM) CERTIFICATE PROGRAM

CANDIDATE
GUIDEBOOK
 ORM Candidate Guidebook — revised June 2020
©2015–2020 Professional Risk Managers’ International Association (PRMIA). All rights reserved.
Contents
How to Use this Candidate Guidebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
PRMIA Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

About the Operational Risk Management (ORM) Certificate Program . . 3

Program Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

ORM Certificate Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Enrollment Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Studying for the ORM Examination . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Examination Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PRMIA Network Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PRMIA Standards of Best Practice, Conduct and
Ethics Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Examination Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

ORM Syllabus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
ORM Exam Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Test Length and Testing Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Exam Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Calculators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Exam Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The Certificate Path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Is This the Right Certificate Program for You? . . . . . . . . . . . . . . . . . . . . 10
Refund Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Join the PRMIA Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Profile Details for PRMIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Program Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Profile Details for Pearson VUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Preparing for the Exam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Online Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
PRMIA Chapter Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Optional Supplemental Learning Program . . . . . . . . . . . . . . . . . . . . 13
Scheduling Exams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Canceling or Rescheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Checking in for an Exam Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Exam Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Taking the Exams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Exam Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Retaking the Exams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Achieving “Holder” Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Maintaining ORM Holder Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

ORM Syllabus and Reading Lists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

How to Use this Candidate Guidebook

T
he purpose of this Operational Risk Management (ORM) Candidate
Guidebook is to ensure future and current candidates have the information
needed to pursue the ORM Certificate.

Future candidates (those individuals Be sure to read this entire document

who have not yet enrolled in the to view important information that will
certificate program) may find important help you to be a successful candidate.
and detailed information regarding
We hope that you will join us in
the program to determine whether
promoting the PRMIA certificate
the ORM is appropriate for their
programs as the standard for our
learning needs.
industry. Invite your peers to learn more
Current candidates (those who are about the PRMIA certificates by sharing
enrolled in the certificate program and the link bit.ly/PRMIAcertificates
are studying for or have scheduled in your social media profiles. Join
the examination) should refer to this the PRMIA Certificate Candidates
Candidate Guidebook to aid their Online Communities and share your
study plan. experiences with others on this
certificate path with you.

1
 PRMIA CONTACT INFORMATION

Inquiries related to PRMIA membership or the ORM Certificate program may be submitted using the inquiry
options shown below.

Inquiry Category Online Contact Us Form Email

Membership and renewal General Questions support@prmia.org

General questions about certificate General Questions support@prmia.org

Specific questions about the

PRM Certification Question certification@prmia.org
PRMTM Designation program

Specific questions about a PRMIA certificate

PRM Certification Question certification@prmia.org
program (Associate PRM, ORM, CCRM, MLARM)

PRM publications support

PRM Publications Support support@prmia.org
(Handbooks, Standards, Case Studies, etc.)

Exam results Exam Result Inquiries certification@prmia.org

Fees and refunds Billing Question support@prmia.org

PRMIA courses and training, including

Training Inquiries learning@prmia.org
member webinars

Continued Risk Learning (recertification) PRM Certification Question certification@prmia.org

Inquiries related to the certification process or requests for appeals

Many of your questions of results may be submitted by completing the Contact Us form titled
Exam Result Inquiries.
can be answered by
this ORM Candidate Accommodation requests: Examinees who require specific test
Guidebook. If you have environment accommodations may contact certification@prmia.org with
details of the specific accommodations required for testing.
additional questions,
please contact us at Report a potential violation of the PRMIA Standards of Best Practice,
certification@prmia.org. Conduct, and Ethics via the PRMIA website.

Do not hesitate to contact certification@prmia.org or call +1-612-605-5370

or +44 020 7096 0827 for answers to any other questions.

© 2020 Professional Risk Managers’ International Association (PRMIA).

All rights reserved. Revised 2015, 2018, 2020
2
About the Operational Risk Management
(ORM) Certificate Program

T he ORM program allows professionals to gain a deep, practical

understanding of operational risk management frameworks and
measurement methodologies in financial institutions.
Operational risk is a
costly risk for firms that
Designed by industry leaders, the profession and work with global have not managed it
ORM Certificate is intended for leaders, educators, practitioners, well. Learn more about
staff with at least two years of and teams, to set the standard for this rapidly developing
experience in the financial or risk our industry. discipline as it evolves
management profession.
Preparing and passing of the ORM in sophistication and
The ORM Certificate is relevant exam is a robust effort, requiring relevance to business
to all risk-related roles in financial a significant commitment by the decision making.
services, in particular operational professional and their supporting
risk staff, financial controllers, organization. The return on
operations and technology investment is a professional
managers, and compliance and achievement, which marks the
legal officers. A grounding in progression of sound career
operational risk management building and fostering of one’s
techniques is increasingly lifelong learning, critical in our
important for front line staff from fast-paced and competitive global
a process and conduct perspective workforce.
in their dealings with clients and
We invite you to join PRMIA and
market counterparts.
take the step to improve upon your
At PRMIA, our mission is to knowledge and skills by becoming
develop and promote the risk an ORM Certificate holder today.

AS OF MAY 2020:
more than
1,200 individuals
in 88 countries
hold the PRMIA
ORM Certificate

3
 Who holds the ORM?
Holders of the ORM Certificate have demonstrated that they:
ORM Certificate holders
have demonstrated n appreciate the role of risk management in the post-crisis financial
knowledge of operational services industry

risk management concepts n understand the role of corporate governance in an organization and of
and practices. It is intended the participants, elements and relationships within risk management
for professionals working in governance
all risk-related roles within
n understand the different roles in risk governance and the place of
an organization. reporting and the use of various elements of a risk framework

Current holders of the n understand the theory and process of risk management and the
ORM Certificate include expected results from a successful risk management process

staff from large banks and n are able to discuss a set of developments in the governance of risk
corporations, government management, with an introduction to the area of risk culture
agencies, and other non-
n can describe the elements of a risk management framework and
financial organizations.
choose the elements to implement in their own workplace

Organizations represented n are able to manage an operational risk assessment program and apply
include HSBC, Bank of it in their workplace
Ireland, Nordea, Ulster n understand how to capture, report, and investigate operational risk
Bank, Allied Irish Bank events, how to produce meaningful key risk indicator (KRI) data and
(AIB), and the Bank of New trend analysis, and how to implement operational risk appetite
York (BNY) Mellon.
n can recognize how operational risk management assists the overall
business and add value
Visit prmia.org/ORM
for a full list of ORM
Certificate holders.

4
Program Design

T
he PRMIA certificate programs were developed under the guidance of the
PRMIA Education Committee. The subject matter included in all PRMIA
certificate programs is based on elements of the Professional Risk Manager
(PRM™) Designation. The intent is to provide specific and relevant topics for
individuals working in various areas of the financial services industry whose role
requires them to understand specific components of risk management.

ORM Certificate Requirements

The ORM Certificate program consists of three core requirement areas:

1. PRMIA Network Requirement

2. PRMIA Standards of Best Practice, Conduct, and Ethics Commitment
3. Examination Requirement

The purpose and scope of each of these are described in detail in the
following sections.

There are no recertification requirements for any PRMIA certificate program.

ENROLLMENT PERIOD

The ORM enrollment period is 12 months (365 days) and begins with the date
that the certificate program fee is paid.

While some ORM candidates are ready to sit for their exam with little study, the
12-month enrollment period is established to allow for a period to study before
the exam is attempted.

5
 STUDYING FOR THE ORM EXAMINATION

Enrollment into a PRMIA certificate program includes access to the digital textbook,
Operational Risk Management Handbook, and web-based resources to aid ORM
candidates in their study.

EXAMINATION PERIOD

The examination must be attempted within the 12-month enrollment period.

PRMIA NETWORK REQUIREMENT

In order to enroll in the ORM program, a candidate must have an account established
at www.prmia.org. By creating an account, you become part of the community of risk
practitioners.

While PRMIA paid membership is not required to enroll or achieve a certificate,

it is highly encouraged, as the PRMIA membership community includes access to
networking and learning events that will enhance your professional development goals.

To learn more about PRMIA membership visit www.prmia.org/membership.

PRMIA STANDARDS OF BEST PRACTICE,

CONDUCT, AND ETHICS COMMITMENT
As a candidate or a holder of any PRMIA certificate program, individuals must display
a commitment to the PRMIA Standards of Best Practice, Conduct, and Ethics. These
are not assessed as part of the examination process.

To learn more about PRMIA Governance visit www.prmia.org/governance.

EXAMINATION REQUIREMENT

To achieve the ORM Certificate, candidates must pass the ORM exam
within 12 months of enrollment.

6
ORM Syllabus

T
he Operational Risk Management (ORM) syllabus addresses a comprehensive set
of knowledge expected of an operational risk manager.

The subject matter of the ORM Certificate is broken down broadly among eight
major domain areas. Knowledge of these domains is assessed using an examination that
includes multiple choice test questions.

A detailed syllabus is provided in the appendix along with the required reading materials.

ORM Exam Structure

T
he purpose of the ORM examination is to assess the current knowledge level of
the ORM syllabus domain areas in relation to the global standard expected of an
operational risk manager.

Knowledge is assessed by multiple-choice test questions that make up the examination.

The table below provides a summary of the eight major domain areas and how the ORM
examination assesses these domains.

Number of
Domain
Assessed Test Questions
A. Introduction 2

B. Risk Governance 6

C. Risk Management Framework 12

D. Risk Assessment 12

E. Risk Information 12

F. Risk Modeling 8

G. Insurance Mitigation 2

H. Case Studies 6

TOTAL 60

7
 TEST LENGTH AND TESTING TIME

The testing time limit established for the ORM examination allows for sufficient time
for all candidates to complete the exam.

Exam Title Test Length Testing Time Limit

(number of test questions)

ORM examination 60 questions 2 hours

Candidates who need additional time or specific test environment accommodations

due to medical or other accommodation needs may contact certification@prmia.org
with details of the specific accommodations required. A staff member will review the
request and work with Pearson VUE to determine how best to meet the
accommodation requirements.

EXAM PLATFORM

The ORM exam is computer-based, and questions are all multiple choice with four
options, and one option is the correct answer.

CALCULATORS

Calculators are not needed nor provided for the ORM examination.

EXAM LANGUAGE

The ORM exam is offered in the English language only.

8
9
 The Certificate Path

P
RMIA certificates are an excellent way to provide validation of your knowledge in
relation to risk management concepts.

To ensure you understand your path to the ORM and allow you to feel prepared for
the examination, this section of the Guidebook describes the path for new candidates in
the program.

IS THIS THE RIGHT CERTIFICATE PROGRAM FOR YOU?

Choosing which PRMIA certificate to pursue is a personal one that depends on your
professional goals, your current knowledge or skill level, and how well that certificate
program will meet your learning needs.

When considering the ORM program, one could consider the following:

n Do I need validation of my knowledge, or do I wish to have a professional

certification (a designation)?

n Am I knowledgeable of the topics shown in the ORM syllabus?

n Is the certificate program recognized in the regions where I work?

n Does my employer or potential employer recognize the importance of

continued education through the study for a certificate?

If you are ready to begin your ORM Certificate, continue on for information about
enrolling into the program.

REFUND POLICY
The ORM Certificate program fee is not refundable or transferable. The information
provided in this Guidebook and online is intended to ensure candidates enrolling in the
certificate program are well informed about the requirements and fees before applying
for the program. For more information visit the PRMIA Terms of Use.

10
JOIN THE PRMIA NETWORK
Potential candidates begin the enrollment process by becoming a PRMIA member1
or creating an account at www.prmia.org.

To create an account:
n Navigate to www.prmia.org and click “Sign in”
n Click the “Create a new account” link
n Follow the on-screen instructions to become part of the PRMIA network

PROFILE DETAILS FOR PRMIA

It is critical that a complete PRMIA profile be provided when enrolling in a PRMIA

certificate program.

PRMIA uses the following details to send pre-approval for any exam authorizations to
Pearson VUE for testing purposes.
n Name as it appears on identification card
n Full preferred mailing address
n Phone number with country (or country code)

Read the PRMIA Data Privacy policy at www.prmia.org.

1
PRMIA paid membership is not required to enroll or achieve a certificate program. Individuals who become Sustaining Members receive member
pricing on the certificate program and any related fees. By joining the PRMIA membership community you receive access to networking and learning
events that will enhance your professional development goals. To learn more about PRMIA membership visit www.prmia.org/membership.

11
 PROGRAM FEES
Visit www.prmia.org/ORM to enroll in the certificate program. Upon program
enrollment, candidates are required to indicate their readiness to begin the study
process by paying the ORM program fee.

Included in the program fee is authorization for the required examination and access
to the digital Operational Risk Management Handbook.

Within 2 to 3 business days of paying the Program fee, an email notification will be
sent that includes instructions on how to access the handbook and schedule the
required examination.

PRMIA has contracted with Pearson VUE to administer the ORM examination at its
test centers around the globe. Follow the instructions in the email to create an account
with Pearson VUE.

PROFILE DETAILS FOR PEARSON VUE

Once a candidate receives an email notification that the exam authorization has been
submitted to Pearson VUE, an account must be created with Pearson VUE, unless one
already exists.

When creating a new account with Pearson VUE, candidates must enter their profile
details as they appear in their PRMIA profile; these details are used to link their exam
records at Pearson with their records at PRMIA.

12
PREPARING FOR THE EXAM
The Operational Risk Management Handbook, along with web-based resources and case
studies, are provided to all ORM candidates to allow them to study and prepare for the
examination.

The reading materials are designed for self-study.

ONLINE COMMUNITIES
PRMIA
Sustaining Members have access to the PRMIA Online Communities. Communities COMMUNITIES
for current ORM candidates studying for the examinations have been established to
allow candidates to engage with each other, ask questions of the PRMIA Risk Leaders
and Education Committee members, and seek advice that will help them in their
certificate path.

To join a PRMIA online community, candidates may sign into their PRMIA Sustaining
Member account, click “Network,” and then choose “Online Communities.”

PRMIA CHAPTER EVENTS

PRMIA has regional chapters around the world that host regular meetings on current
risk management topics.

The speakers are leading industry figures from banks, exchanges, regulators,
academia, consultants, vendors, asset managers, etc. The meetings are open to all
PRMIA members, and constitute an excellent opportunity for professionals to stay
informed of the latest developments in risk management and measurement.

OPTIONAL SUPPLEMENTAL LEARNING PROGRAM

For candidates who would like more structure to their study and a guided process in
a learning community, PRMIA offers several self-study options through its learning
management system. Visit www.prmia.org/learning for details on optional training.

13
 SCHEDULING EXAMS
The ORM examination is administered in a proctored environment at
Pearson VUE facilities around the globe.

Candidates schedule an examination by creating an account with Pearson VUE

or logging in to their existing account to view pre-approved exams at
www.pearsonvue.com/prmia.

Examinations are offered throughout the year. By selecting a test center within the
Pearson VUE account, centers with available test dates and times display.

Candidates are encouraged to review the important details about registration,

cancellation, identification requirements, and space availability in the Pearson
VUE account.

CANCELING OR RESCHEDULING
In recognition of the busy and changing schedules of risk managers, candidates may
change their exam appointment without charge through the Pearson VUE system at
www.pearsonvue.com/prmia.

All change requests must be made at least one business day before the testing
date or the entire exam fee will be forfeited.

All authorized exams have an expiration date. To view the exam expiration dates,
candidates may log into their Pearson VUE account and view the details of the
pre-approved exam.

All program and exam fees are final and non-refundable.

14
CHECKING IN FOR AN EXAM APPOINTMENT
On the date of the appointment, candidates should arrive at the testing center at least
15 minutes before the scheduled start time. Two forms of identification are required.
The first must be a current government-issued ID with a photograph and signature.

In addition to providing identification during the admissions process, all authorized

Pearson VUE testing centers will take a digital signature, using a signature pad, and a
digital photograph.

Arrive on Time
It is very important that candidates arrive at the testing center early. Candidates who
arrive late to the testing center may not be permitted to test. The full fee for the exam
will be charged if candidates are not admitted for any reason. As these centers offer
exams for other organizations, not everyone in the room will be taking the same exam,
so no assumptions should be made about when other candidates enter or leave the
testing center.

EXAM SECURITY
The ORM exam is conducted under secure conditions. Any attempt by candidates
to copy questions, by any means including organized memorizing, and to distribute
these questions to other individuals, will be treated as unethical behavior and may
result in penalties against the candidate, which could include forfeiture of any PRMIA
certificates, exam authorizations, and possible expulsion from PRMIA. Incitement to
copy and usage of copied questions may also result in the same penalties.

TAKING THE EXAMS

ORM candidates have 12 months from the date the program fee is paid to take the
examination.
n Candidates may only sit for the ORM examination once every 90 days.
n The exams are computer-based.
n Candidates will not receive any copies of the questions.
n No paper may be brought into the testing center; however, candidates are

provided with an erasable board upon request.

15
 Examination Administration
Each testing center has an administrator who assists exam candidates with the
testing process.

Once admitted to the testing room, there will be a tutorial that introduces the
functionality of the exam and a brief message from PRMIA. After the tutorial has been
viewed, the candidate may begin the exam, which includes multiple-choice questions.
Sufficient time is allocated to read the tutorial and message and complete the exam.

The testing system allows marking and reviewing questions as long as time is
remaining. Candidates are encouraged to monitor and use their time effectively to
ensure they respond to all required test questions.

Incidents During an Exam Administration

In the event of an incident where the exam candidate believes the testing environment
is no longer compatible with good examination conditions (computer failure,
inadequate supplies, excessive noise, or any other circumstance), the candidate must
bring the incident to the attention of the examination proctor (invigilator) immediately
upon the incident being noticed — without continuing the exam.

Failure to inform the proctor in this manner will invalidate any subsequent candidate
incident reporting that cannot be substantiated by the test center.

Calculators
Calculators are not needed nor provided for the ORM examination.

EXAM RESULTS
PRMIA will post exam results to candidates’ PRMIA profile no later than 15 business
days from the testing date. When available, candidates will receive an email from
certification@prmia.org with instructions on how to access the results.

RETAKING THE EXAMS

Candidates who do not pass an exam are eligible to retake the exam 90 days from
the date of the last exam. Individuals who require a retake will receive notifications
from PRMIA at the beginning of the month they are eligible to retake the exam with
instructions on how to purchase an exam retake.

Candidates may also contact support@prmia.org or submit a Contact Us inquiry to

request the retake exam purchase link.

16
ACHIEVING “HOLDER” STATUS
To achieve “holder” status, the ORM candidate must successfully pass the ORM
examination. To pass the examination, a score of 36 out of 60 questions is required,
or 60% correct.

Holders may display the digital certificate issued as a result of their achievement. Holders
are also listed in the ORM Directory.

MAINTAINING ORM HOLDER STATUS

There are no maintenance requirements for the ORM Certificate program.

Holders are expected to continue to display a commitment to the PRMIA Standards of Best
Practice, Conduct, and Ethics.

To learn more about PRMIA Governance visit www.prmia.org/governance.

17
 APPENDIX

ORM Syllabus and Reading Lists

SECTION A: INTRODUCTION
(2 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 1, Foreword

SECTION A OBJECTIVES
Participants will gain an appreciation of the role of risk management in the
post-crisis financial services industry.

n Regulatory Context since 2008

n Embedding Risk Best Practices

SECTION B: RISK GOVERNANCE

(6 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 2, Risk Governance

SECTION B OBJECTIVES
Participants will gain an appreciation of the role of risk management in the
post-crisis financial services industry.

n Governance
• Origins of Corporate Governance
• Risk Governance and Strategic Planning
• Risk Governance Principles
n People / Roles and Responsibilities
• The Board
• CRO
• Wider Reporting
• Systems and Documentation
n Process
• Theory
• Risk Management Process
• Results
n Risk Governance Developments

18
SECTION C: THE RISK MANAGEMENT FRAMEWORK
(12 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 3, Risk Management Framework

SECTION C OBJECTIVES
Participants will be able to describe the elements of a risk management framework and
choose the elements to implement in their own workplace.

n Risk Capacity
• Risk Capacity
• Resources and Risk Capacity
• Stress Testing and Simulation
• Setting the Risk Capacity
n Risk Appetite
• Risk Appetite
• The Risk Appetite in an Organization
• An Example Risk Appetite Statement
n Risk Policies
• Introduction to Policies
• Structure of a Risk Policy
• Risk Policies in an Organization
• Policy Coverage
n Risk Pricing
• Risk Pricing Introduction
• Interaction with Internal and External Partners
• Capital Costs
n Risk Culture
• Leadership and Risk Culture
• The Role of the Risk Management Function in Risk Culture
• The Place of Other Staff in Risk Culture
• Evaluating Risk Culture

19
 SECTION D: RISK ASSESSMENT
(12 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 4, Risk Assessment

SECTION D OBJECTIVES
Participants will be able to manage an operational risk assessment program
and apply it in their workplace.

n Risk Assessment
• Risk Assessment Overview
• Risk Assessment Lifecycle
n Risk Scenarios (‘Top Down’)
• Top Down Identification
• Workshops
• Example Scenario (DR)
n Process Models (‘Bottom Up’)
• Control Identification (Linking Top-Down and Bottom-Up)
• Process Reviews
• Control Framework and Assessment
n Operational Risk Issues
• Identify Issues and Design Actions Plan
• Issue Management
• Residual Risk
• Management Validation
n Additional Risk Assessment Topics
• Risk Assessment of New and Expanded Products
• Risk Assessment and Third Party Services

20
SECTION E: RISK INFORMATION
(12 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 5, Risk Information

SECTION E OBJECTIVES
Participants will be able to describe operational risk events, key risk indicators (KRIs)
and reporting, and create a KRI framework.

n Introduction
• Risk Appetite and Risk Profile
• Expected Loss
• Unexpected Loss
n Loss Investigations
• Operational Risk Incidents & Investigation
• Collecting Loss Data
• Quantifying Losses
• Boundary Issues
• External Loss Data
n Key Risk Indicators (KRIs)
• Introduction to KRIs
• Selecting Appropriate KRIs
• Interdependent KRIs
• Implementing a KRI Framework
n Risk Reporting & Toolsets
• Data Model
• Workflows
• Reporting

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 SECTION F: RISK MODELING
(8 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 6, Risk Modeling

SECTION F OBJECTIVES
Participants will be able to recognize how operational risk management can assist
the overall business and add value.

n Capital & Risk Pricing

• Basel II and Operational Risk Capital
• Frequency and Severity
• Combining Approaches
• Capital Allocation

SECTION G: INSURANCE MITIGATION

(2 out of 60 exam questions)

READING MATERIALS
Operational Risk Manager Handbook, 2015
n Chapter 7, Insurance Mitigation

SECTION G OBJECTIVES
n Insurance Mitigation Introduction

n Risk Taxonomy and Mapping

n Qualification Criteria of Insurance Mitigation

n Calculation of Capital Relief

SECTION H: CASE STUDIES

(6 out of 60 exam questions)

READING MATERIALS
Web-based Resources

To view case studies, follow this link or paste the URL into your browser:
n

https://prmia.org/orm-web-resources

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 ORM Candidate Guidebook — revised June 2020
©2015–2020 Professional Risk Managers’ International Association (PRMIA). All rights reserved.