Associate in risk management

Associate in risk management (ARM) is a person who must hold a nationally recognized certificate of professional competence in risk management, developed and administered by the Insurance Institute of America (IIA). Associate in risk management is a person qualified to take part in the risk management process consisting of practices to manage, avoid or reduce risk by identifying, assessing and controlling enterprise risk.

ARM™ Insurance Designation

An individual is required to successfully complete three following courses ending with an exam:

1. ARM™ 54 - associated with risk assessment. This part consists of 75 questions; to achieve a passing grade, an individual is obliged to answer 53 questions correctly, which constitutes 70% of the exam,
2. ARM™ 55 - based on risk control,
3. ARM™ 56 - connected with risk finance.

As a result of obtaining the ARM™ certification, associates in risk management are ready to perform the functions of risk manager.

ARM™ as a program designed for all professions associated with risk management

This three-part course is primarily recommended to be completed by individuals whose job duties are to make decisions based on risk:

• CFOs (Chief Financial Officers),
• CROs (Chief Risk Officers),
• brokers / agents,
• risk management coordinators,
• risk management consultants,
• risk management analysts,
• etc.

Amendments in ARM™ taking effect on March 15, 2020

Due to changes resulting from the new ARM™ designation, all three courses will be transformed in the following manner:

1. ARM™ 54 → ARM™ 400,
2. ARM™ 55 → ARM™ 401,
3. ARM™ 56 → ARM™ 402.

Advantages of Associate in risk management

An Associate in Risk Management (ARM) offers a number of advantages to organizations. These include:

• Improved risk management processes: ARM holders can help organizations identify, assess, and control enterprise risk through the use of best practices and techniques. They can also develop risk management strategies and plans that are tailored to the organization’s particular needs.
• Enhanced compliance: ARM holders are knowledgeable in risk management regulations and laws, so they can help organizations ensure compliance with relevant rules and regulations.
• Improved cost management: ARM holders are well-versed in financial and insurance principles, which can help organizations identify areas of potential cost savings and develop effective strategies for mitigating risk.
• Improved communication and collaboration: ARM holders can help facilitate collaboration between different departments and stakeholders to ensure that risk management processes are effective and efficient.
• Enhanced decision-making: ARM holders are knowledgeable in risk analysis and can use data to help organizations make informed decisions about risk management.
• Improved clarity: ARM holders can help organizations better understand the implications of risk and make sure that everyone involved is on the same page.

Overall, the Associate in Risk Management credential is a valuable asset for organizations looking to improve their risk management processes and procedures.

Limitations of Associate in risk management

The Associate in risk management (ARM) designation is a valuable asset for those seeking to enter the field of risk management. However, there are certain limitations to this designation that should be kept in mind when pursuing this certification. These limitations include:

• Lack of formal education: Achieving the ARM designation requires completion of a professional certification course from the Insurance Institute of America, but does not require any formal education or prior experience in the field of risk management.
• Limited scope of knowledge: The ARM certification focuses on the basics of risk management, such as identification and assessment of risks, but does not provide a comprehensive understanding of the more complex aspects of risk management.
• Limited industry specialization: The ARM certification is a generalist designation, meaning it does not provide specialization in a specific industry or business sector.
• Limited continuing education: The ARM certification does not require continuing education, meaning individuals must stay up-to-date on industry trends and developments on their own.
• Limited job opportunities: In many cases, organizations require more in-depth knowledge and experience than the ARM certification provides. This can limit the job opportunities available to individuals with the ARM designation.

Other approaches related to Associate in risk management

The Associate in Risk Management (ARM) approach is an important part of managing risks within an organization. In addition to the ARM, there are other approaches that can be used to manage and reduce risk. These approaches include:

• Risk Analysis: This approach involves assessing the likelihood of the occurrence of a particular risk and finding ways to minimize it. This can be done through identifying the sources of risk and the potential consequences of the risk occurring.
• Risk Mitigation: This approach involves taking steps to reduce the potential impacts of a risk. This can include developing strategies to address the risks, such as introducing new policies and procedures, or implementing controls to reduce the likelihood of the risk occurring.
• Risk Transfer: This approach involves transferring the risk to another party. This can be done through insurance policies, legal contracts, or other means.

Overall, the Associate in Risk Management approach is an important part of managing risk within an organization. However, there are also other approaches that can be used to identify, assess, and control risk. Understanding these approaches and applying them to the organization’s risk management process can help to ensure that risks are properly identified and addressed.

Associate in risk management — recommended articles

Business risk management — Paraplanning — Risk management process — Internal audit — Legal risk — Implementation of information security management system — Strategic risk management — Knowledge and information — Solutions to problems

References

• Carroll R. E. (2009) Risk Management Handbook for Health Care Organizations, Student Edition, Jossey-Bass, San Francisco, p. 570
• Carroll R. E. (2011) Risk Management Handbook for Health Care Organizations, 3 Volume Set, Sixth Edition, Jossey-Bass, San Francisco
• Hopkin P. (2018) Fundamentals of Risk Management. Understanding, Evaluating and Implementing Effective Risk Management, Fifth Edition, Kogan Page, London
• ARM™ 54 Passing Grade (ARM™ 400), 2019, AssociatePI Insurance Education
• What is the Associate in Risk Management (ARM™ Insurance Designation), 2019, AssociatePI Insurance Education
• Keir Educational Resources (2016) Answers to the Questions in the Course Guide. Risk Management Principles and Practices. ARM 54, First Edition, Keir Educational Resources, Middletown
• Sadgrove K. (2015) The Complete Guide to Business Risk Management, Third Edition, Gower, Aldershot
• The Institutes (2019) Important Course Revisions", The Institutes, Malvern

Footnotes

Author: Ewelina Wojtarowicz