Risk and compliance management has become an essential part of modern business practices, driven by increasing regulatory complexity and the accelerating pace of business. As a result, the demand for skilled professionals in the field of risk and compliance management is growing significantly. The CRCMP has become one of the most recognized certificates in risk management and compliance. There are CRCMPs in 57 countries. Companies and organizations around the world consider the CRCMP a preferred certificate.
Certified Risk and Compliance Management Professional (CRCMP)
A key way to demonstrate expertise in this field is through the Certified Risk and Compliance Management Professional (CRCMP) certification. This article dives into the specifics of the CRCMP certification and why it may be a valuable addition to your professional repertoire.
CRCMP Objectives:
The CRCMP program has been designed to provide with the knowledge and skills needed to understand and support regulatory compliance and enterprise wide risk management. The course provides with the skills needed to pass the Certified Risk and Compliance Management Professional (CRCMP) exam.
CRCMP Target Audience:
The CRCMP program is beneficial to:
- Managers and employees involved in the design and implementation of risk and compliance related strategies, policies, procedures, risk assessments, control activities, testing, documentation, monitoring and reporting.
- Vendors, suppliers, and service providers.
This course is intended for employers demanding qualified professionals that meet the fit and proper requirements.
Understanding Risk and Compliance Management
Before we delve into the specifics of the CRCMP certification, let’s briefly touch on risk and compliance management. In essence, risk management involves identifying, evaluating, and prioritizing risks in order to minimize, monitor, and control the probability or impact of unfortunate events. Meanwhile, compliance management refers to ensuring that an organization adheres to a set of defined rules, such as laws, regulations, and standards. Adept risk and compliance management aids in safeguarding an organization’s reputation, financial health, and operational efficiency.
The CRCMP Certification
The Certified Risk and Compliance Management Professional (CRCMP) certification is a professional accreditation offered by the International Association of Risk and Compliance Professionals (IARCP). Recognized globally, this certification validates a professional’s ability to understand and manage risk and compliance functions effectively. Moreover, it demonstrates that an individual has the knowledge and skills required to contribute to the strategic decision-making processes within an organization.
The CRCMP certification covers several core areas, including the fundamentals of risk and compliance management, regulatory environment, risk assessment and mitigation strategies, compliance function structure, and the technological aspects of risk and compliance management.
Why the CRCMP Certification?
Earning the CRCMP certification provides a range of benefits that can significantly enhance your career potential. These benefits include:
- Industry Recognition: The CRCMP certification is globally recognized and respected by organizations and industry professionals. It serves as a testament to your skills and knowledge in the field of risk and compliance management.
- Career Advancement: With the CRCMP certification, you become more attractive to employers, opening up opportunities for career advancement. It not only validates your knowledge and skills but also your commitment to your professional development.
- Enhanced Knowledge and Skills: The CRCMP certification curriculum provides a comprehensive understanding of risk and compliance management. This allows you to develop skills in critical areas, such as risk identification, assessment, mitigation, and how to establish a compliance function within an organization.
- Networking Opportunities: Being a CRCMP-certified professional also means being a part of a global community of risk and compliance management professionals. This can provide you with networking opportunities and the chance to learn from other experts in the field.
Requirements for the CRCMP Certification
The requirements for the CRCMP certification are as follows:
- Experience: A minimum of three years of work experience in risk management and/or compliance, or related fields, is required. This ensures that applicants have a fundamental understanding of the complexities and challenges associated with risk and compliance management.
- Education: The candidate should possess at least a bachelor’s degree.
- Examination: To earn the CRCMP certification, the candidate must successfully pass an examination that tests their understanding of risk and compliance management.
Preparing for the CRCMP Certification Examination
The CRCMP certification exam covers a broad range of topics related to risk and compliance management. It’s advisable to use a variety of study resources to prepare effectively for the exam. These may include online study guides, textbooks, practice tests, and possibly participating in a formal training program. IARCP also offers an optional training course and a comprehensive study manual to help candidates prepare for the exam.
The exam consists of multiple-choice questions covering topics such as the regulatory environment, risk assessment and management, compliance program structure, the role of technology in risk and compliance management, among others.
CRCMP Course Synopsis
Part A: Introduction to governance, risk, compliance, risk management.
Governance and corporate governance.
– Basel Committee, corporate governance principles.
– The OECD (Organization for Economic Cooperation and Development) principles of corporate governance.
– Financial Stability Board (FSB), Thematic Review on Risk Governance.
– FSB, Thematic Review on Corporate Governance.
– FSB, Strengthening Governance Frameworks to Mitigate Misconduct Risk.
– Case studies.
What is risk?
– Risk and uncertainty.
– Risk in the corporate and the military environment.
– Risk response.
– Risk acceptance.
– Risk avoidance.
– Risk transfer, risk sharing.
– Risk mitigation.
– Is risk a good or a bad thing?
– Risk and opportunity, US National Intelligence Strategy.
– Cyber risks.
– Policies, Procedures, Baselines, Guidelines, Ethics.
– Threats and Vulnerabilities.
– Case studies.
Understanding risk management.
– Risk management, and the role of the Chief Risk Officer (CRO).
– Risk management problems.
– Risk perception, optimism bias, availability bias, control bias, narrative bias.
– Over-optimism, misrepresentation, alarmism, prejudice.
– Risk management in the corporate and the military environment.
– NIST Special Publication 800-30.
– Risk Mitigation Methodology Flowchart.
– Case studies.
Understanding Compliance Management.
– Compliance, and the role of the Chief Compliance Officer (CCO).
– Regulatory reporting.
– Training.
– Enterprise wide risk and compliance program.
– Compliance and the compliance function in banks, from the Basel Committee.
– Case studies.
Outsourcing and Risk Management.
– Key Risks of Outsourcing.
– Outsourcing and Compliance.
Part B: Sarbanes-Oxley, an international standard.
The need.
– Companies affected.
– American Depository Receipt (ADR) program.
– Employees affected.
– Foreign Private Issuers (FPIs) and Sarbanes-Oxley compliance.
– EDGAR – Electronic Data Gathering, Analysis, and Retrieval system.
– Case Studies.
The Sarbanes-Oxley Act.
– Key sections, what we need to know.
– Board’s new responsibilities.
– Management’s testing and documentation.
– Management’s responsibilities.
– Committees and teams.
– Sections 302, 404, 906: The three certifications.
– Sections 302, 404, 906: Examples and case studies.
– The Securities and Exchange Commission (SEC) and the Sarbanes-Oxley Act.
– The PCAOB and the new Auditing Standards: What we need to know.
– Control Deficiency.
– Deficiency in Design.
– Deficiency in Operation.
– Significant Deficiency.
– Material Weakness.
The Scope of the Sarbanes-Oxley Act.
– Software and Spreadsheets after the Sarbanes-Oxley Act.
– Service providers.
E-SOX, the European Sarbanes-Oxley.
– The 8th Company Law Directive of the European Union.
– Ahold, Parmalat and the new rules.
– The “equivalence” of a third country.
J-SOX, the Japanese Sarbanes-Oxley.
– From Enron to Livedoor, Kokudo, Kanebo.
– The Financial Instruments and Exchange Law.
– J-SOX requirements similar to the U.S. Sarbanes-Oxley Act.
– From the Financial Services Agency (FSA) to the Certified Public Accountants and Auditing Oversight Board (CPAAOB), to the Securities and Exchange Surveillance Commission (SESC).
Part C: Basel II, Basel III – the new international standards in governance, risk, and compliance
– The Bretton Woods Agreement.
– Bankhaus Herstatt.
– The Bank for International Settlements (BIS).
– The Basel Committee on Banking Supervision (BCBS).
– The purposes of the Basel framework.
Basel I, Basel II, Basel III.
– Basel I – The First Basel Capital Accord.
– Basel II – The major amendment.
– Pillar 1: Minimum capital requirements.
– Pillar 2: Supervisory review process.
– Pillar 3: Market discipline.
– Branch office vs. subsidiary.
– Credit risk, market risk, operation risk.
– Operating, Operations, Operational risks.
– Seven Event Types (Loss Categories).
– The 8 business lines.
Delphi method – exploring the future.
– 5 categories of control breakdowns.
The Basel III amendment.
– The objective of the reform.
– Basel III, sound corporate governance principles.
– A. Board practices.
– B. Senior management.
– C. Risk management and internal controls.
– D. Compensation.
– E. Complex or opaque corporate structures.
– F. Disclosure and transparency.
– The role of the supervisors.
Part D: The Frameworks
The Committee of Sponsoring Organizations (COSO).
– 1992, COSO Internal Control — Integrated Framework.
– The COSO cube.
– Control Environment.
– Risk Assessment.
– Control Activities.
– Information and Communication.
– Monitoring.
– Effectiveness and Efficiency of Operations.
– Reliability of Financial Reporting.
– Compliance with applicable laws and regulations.
2013, COSO Internal Control — Integrated Framework.
– The updated COSO cube.
– Example: Cyber risk and COSO.
2004, the COSO Enterprise Risk Management (ERM) Framework.
– The differences between COSO and COSO ERM.
– Components of Enterprise Risk Management.
– The COSO ERM cube.
Is COSO ERM needed for compliance?
– Internal Environment.
– Objective Setting.
– Event Identification.
– Risk Assessment.
– Risk Response.
– Control Activities.
– Information and Communication.
– Monitoring.
– Objectives: Strategic, Operations, Reporting, Compliance.
– ERM – Application Techniques.
– 2017, the updated COSO ERM.
– Enterprise Risk Management and Strategy Selection.
Part E: Designing and implementing a risk and compliance program.
Which is the best program?
– Principles of Effective Compliance Programs, from the US Bureau of Industry and Security. – Comprehensive compliance programs.
– U.S. Department of Justice, Evaluation of Corporate Compliance Programs.
– The three fundamental questions.
– 1. Is the Corporation’s Compliance Program Well Designed?
– 2. Is the Corporation’s Compliance Program Being Implemented Effectively?
– 3. Does the Corporation’s Compliance Program Work in Practice?
Part F: Artificial Intelligence and Risk Management.
The objective of this part of the program is to give a general understanding of the subject. An in depth analysis would require thousands of pages.
– Artificial intelligence, machine learning, synthetic data.
– AI, machine learning, and risk.
– AI, prevention, detection and response.
– The case study from Morgan Stanley.
– AI, disinformation, deep fakes, sock puppets, social bots, cyborgs, micro-targeting.
– The Artificial Intelligence Act of the EU.
– The Framework for AI Cybersecurity Practices (FAICP framework), from the European Union Agency for Cybersecurity.
– Layer I (cybersecurity foundations).
– Layer II (AI-specific).
– Layer III (Sectoral AI).
– The NIST framework: Artificial Intelligence Risk Management Framework (AI RMF 1.0).
Part 1: Foundational Information.
Part 2: Core and Profiles.
AI RMF Profiles.
Maintaining CRCMP Certification
After earning the CRCMP certification, maintaining the credential involves fulfilling continuing professional education (CPE) requirements. These requirements ensure that professionals stay up-to-date with the latest trends and developments in risk and compliance management.
As per IARCP guidelines, CRCMP-certified professionals must complete 40 CPE hours annually. These can be earned through a variety of professional development activities, including attending conferences, webinars, seminars, training programs, or even teaching or authoring publications on relevant topics.
In a complex business world filled with regulatory requirements and risks, professionals who can effectively manage these elements are indispensable. The Certified Risk and Compliance Management Professional (CRCMP) certification is a reliable way to demonstrate your expertise in this field. It offers a path for career advancement, broadens your professional network, and boosts your credibility in the industry. By investing time and effort into earning the CRCMP certification, you can position yourself as a leader in risk and compliance management, and contribute significantly to your organization’s success.