In today’s complex, interconnected business environment, many companies are exposed to different risks. These risks can stem from a variety of geopolitical, environmental, economic, and technological factors.
To mitigate these risks, business owners need a specialist in assessing and guarding against these threats. The risk management industry has a name for this type of professional – Certified Risk Manager (CRM).
The CRM is equipped with the technical knowledge and expertise to protect businesses from the many risks that they may face. With the many threats that businesses encounter, this role promises to be an exciting career with competitive wages and a good future in the job market.
So, how do you get CRM certification? How much does Certified Risk Manager certification cost? What are the requirements for becoming a CRM? Insurance Business will provide insight into these and more, in this guide.
The Certified Risk Manager is someone who has earned the CRM designation. After completing the necessary courses and exams, these certified professionals are expected to have a high level of technical knowledge and expertise in risk management.
Customized for risk management practitioners, the CRM designation can be very useful, as they learn valuable, sought-after skills that may be applied in different industries. For the insurance industry, they can do risk identification, risk assessment, and risk mitigation – both for insurance companies and their clients.
CRMs typically determine and assess the risks businesses may face, then recommend the appropriate protective measures. Here’s a more detailed breakdown of what a CRM typically does:
Risk managers can be called upon to manage both internal and external risk factors. Their job is mainly to identify areas of liability for a company, analyze possible sources of risk, then formulate and implement risk-management strategies.
Certified risk managers may also oversee a company’s security protocols for cyber operations and physical locations. They can analyze, predict, and lessen or eliminate these types of risks:
Operational risk – These risks include disruptions in the normal output of a business. Risks under this category can include theft, employee safety, damage to products or facilities and fraud.
Financial risk – Professionals in risk management go through a company’s financial transactions, assessing the risk factors in their credit, investments, purchases and trade.
Reputational risk – Risk managers may also take care of threats to a company's reputation. These risks may be due to negative publicity, complaints about their products or services and other problems that can damage or ruin a business’s public image.
To earn the CRM designation, candidates can follow a straightforward process. These are the steps:
While it’s not mandatory to have a bachelor’s degree, having or earning one before pursuing this risk management certification can give you certain advantages. Having a business-related degree like business management, accounting, economics, or finance can teach you many of the related terms and concepts.
A degree in these disciplines can also give you a head start on learning critical insurance terms and concepts. A more advanced degree like an MBA can likewise give you a bigger advantage in terms of accumulating the necessary expertise and attracting the attention of prospective employers.
You don’t need any special titles or certifications to gain work experience in risk management. While it’s not mandatory, it is advisable to accumulate at least two years’ worth of work experience in a risk management-related role. This can provide you with ample practical experience that can benefit your pursuit of the CRM title.
The CRM certification can help you earn a higher salary and secure higher positions as you prove your expertise to clients and employers. Although becoming a CRM is a key to establishing a successful career in risk management, earning other industry-specific designations can be beneficial.
For instance, if you plan to apply your CRM knowledge in insurance, you can pair this title with other career-advancing designations for insurance professionals. As you gain more experience and move up in your organization, you can take on even more certifications to advance your career.
In the CRM program, there are five required courses to complete before taking the certification exams. These courses cover key aspects of risk management:
Each of these required courses includes instruction, application exercises, and an exam at the end.
After completing the instruction and application exercise components of each course, you have to take an exam. The exams are proctored, closed-book, and have a time limit of 2.5 hours. The passing grade for each of these exams is 70%. You must complete all the exams within a five-year period from passing the first exam.
To keep your CRM title updated and active, you need to take a continuing education (CE) course. Fortunately, staying committed to continuing education for the CRM title is not difficult. All you need is to take a supplementary course every year – this is enough to stay updated with the latest developments in risk management.
There are different options to fulfill your CE requirements. You can complete any CRM course, or courses for Certified Personal Risk Manager (CPRM), Certified Insurance Counselor (CIC), or other related seminars or courses.
Although we are focused on CRM job opportunities within the insurance industry, certified professionals can also find jobs in other industries.
Risk management principles are also a part of project management and apply to almost every business sector. Managing risk is directly incorporated into the process of planning, executing, and monitoring a project to spot, reduce, or prevent potential issues that could impact its success.
As a Certified Risk Manager, you can focus on specific areas depending on an industry's particular risks. Here are key industries where CRMs can find employment:
CRMs in the insurance industry mainly assess and manage risks that could adversely affect insurance companies or clients who contract their services.
CRMs typically work with underwriters to identify potential risks and develop strategies to reduce or prevent them. They can also ensure that company insurance policies are up-to-date and recommend additional policies as necessary. Here’s a more detailed rundown of what Certified Risk Managers do for insurance companies or their clients:
Is there high demand for CRMs these days? According to some sources, yes, there is a high and growing demand for risk managers and their services. Key factors behind the demand for risk managers, auditors, and analysts include:
With the increasing complexity in business and advances in technology, there are more threats and risks to business, like cybersecurity threats. Other risks like regulatory compliance and global economic uncertainties are causing an increased need for qualified risk managers.
More businesses are becoming more informed and aware about the importance of having proactive risk management. There are even affluent individuals who are aware of external risks and hire personal risk managers. Increasing awareness among businesses and their clients about how risk managers can protect their operations and bottom-line are likewise driving up demand for these professionals.
Certified Risk Managers can find plenty of employment opportunities in different industries like finance, utilities, health, manufacturing, and technology. Certified professionals who can work as Compliance Risk Officers or Environmental Risk Managers are increasingly sought after. Don’t forget that many insurance companies of all sizes need in-house risk managers.
The latest figures say that as of January 2025, a Certified Risk Manager in the US makes an average of $111,556 per year. Calculated as an hourly rate, their average salary turns out to be approximately $53.63. The monthly average is $9,296.
|
Percentile rank |
Salary |
|---|---|
|
90th |
$153,000 |
|
75th |
$129,000 |
|
25th |
$90,000 |
Source: ziprecruiter
In some areas, risk manager salaries can be as high as $170,000 and as low as $51,500. Keep in mind that the average salaries of CRMs can vary widely, suggesting that there can be many opportunities for advancement. The salary variations are affected by several factors like individual skill level, years of experience, industry, and location.
Certification alone is not enough to become successful as a CRM. Apart from the knowledge and experience, it helps to acquire and develop the necessary skills. Here are the recommended skills to help you succeed in your career:
Risk managers need a deep knowledge and understanding of how a business works. This helps them better identify and estimate risks. They should stay updated on industry trends, economic factors, and regulatory frameworks relevant to their organization.
Knowing how to communicate complex concepts and making important recommendations concerning risks is crucial for a CRM to succeed in their careers. Stakeholders, regulatory authorities, department heads, and company executives will need to understand your recommendations for handling risk.
Leadership skills are necessary to foster a culture of collaboration within your organization. By forming and encouraging a collaborative culture along with practicing open communication, you can build more awareness of risk and create a positive risk culture.
You will be dealing with a lot of data, so interpreting what the data means is critical for your success as a risk manager. With analytical and problem-solving skills, you can identify potential risks, see patterns, and make informed decisions or recommendations.
These skills can help you identify weaknesses, whether in IT systems, business processes, and financial practices. Problem-solving skills are also critical, since risk managers often need to address and resolve issues, sometimes independently.
Flexibility and adaptability are very important for Certified Risk Managers, especially with new and ever-evolving threats that businesses face. CRMs should be capable of evaluating and adapting risk management strategies to these changing risks and ensuring they remain effective.
As for strategic thinking, this enables risk managers to align risk management practices with business objectives and contribute to value creation. Strategic thinking helps risk managers understand how their risk management planning fits with the organization’s strategic objectives.
Pursuing this designation and establishing this career ultimately depends on the individual. Note that there is a significant amount of time and money that you must devote to getting this title.
The cost of each of the five required courses is in the range of $430 to $440, and each course requires 16 hours to complete. If a candidate does well in each of the course exams and secures a high-paying job, then this certainly offsets the costs and is worth the investment.
Due to the growing demand for risk professionals, the job prospects are bright and diverse. You may even find yourself working as a personal risk manager for celebrities like sports stars. To know whether the CRM career is right for you, do your due diligence and know all there is about it – the advantages, opportunities, and on the flipside, its drawbacks. Then you can make an informed decision.
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