After a 9-month journey, I earned the Associate in Risk Management designation by The Institutes and gained valuable insights crucial to my insurance career.
What is the Associate in Risk Management designation?
An Associate in Risk Management (ARM) designation is a US-recognized program developed by the Insurance Institute of America, or The Institutes, for dedicated risk management professionals.
Why did I pursue this designation?
As a young insurance underwriter, I deal with risks on a daily basis and it is intimidating to be given the responsibility to contribute to the insurer’s books. Therefore, I believe learning the fundamentals of risk management has increased my confidence in identifying and analyzing the risks that I work with.
Here are 5 main reasons why I decided to pursue this designation:
- Textbooks and exams are available online
- This is convenient as I am based in a different time zone area and will only have to rely on myself to stay disciplined and keep up with the syllabus
- Online learning has taught the importance of time management as I have to sit for the exam
- The downside is that if I don’t understand a certain topic, I’m doomed (but there is a way to get the answers – check out The Institutes’ Facebook Group)
- Free course to sample The Institutes Designations most popular programs
- I got to try out the free course Online CPCU Micro-Course months before I decided to pursue the ARM designation. Check out the free courses below for yourself!
- Exam results released instantaneously
- This can be a good or bad thing. Personally for me, at least I would know whether I have done well or not without having to wait for weeks for the results
- Convenient way to learn
- I chose the Online Only Package, and yet it was sufficient to work with. The online package has assignment quizzes, practice exam and simulated credentialing exam which is helpful to understand while learning each chapter
- The Institutes has a SMART QuizMe app, which is an app that has all the subjects available with multiple choice questions. I used this app almost everyday during my commute to work. One thing to note is that I had to purchase (FYI it’s not free) for the subject I want to revise on.
- Be part of the CPCU community
- As per point 1, there are 2 Facebook groups that are free to all Institutes’ candidates. Joining likeminded people has made me feel less lonely during the journey to obtain my ARM.
- CPCU Candidates – This is a platform where candidates can ask questions and others in the community can provide an explanation to the answer.
- The Institutes’ Chat – This group is for risk management and insurance professionals who are working on their professional development and seeking advice from their peers and The Institutes.
- As per point 1, there are 2 Facebook groups that are free to all Institutes’ candidates. Joining likeminded people has made me feel less lonely during the journey to obtain my ARM.
How much does it cost?
Each course (excluding Ethics which is free) has separate costs depending on the timing and which exam window you want to sit in.
Materials costs: $379 – $469
Exam costs: $239 – $319
Yes, they are in US Dollars. And the price is per subject.
There are 3 subjects in ARM.
How long is the designation?
According to The Institutes’ website, the course has an estimated 9–12 month completion time. It is possible to complete earlier, but I believe 9 months is enough to sufficiently learn the whole course.
There are 4 testing windows available on an annual basis, so make sure you plan your studying accordingly:
- Quarter 1 – January 15th – March 15th
- Quarter 2 – April 15th – June 15th
- Quarter 3 – July 15th – September 15th
- Quarter 4 – October 15th – December 15th
How it works?
To earn the designation, you must complete 3 core courses, plus ethics
ARM 400: Risk in an Evolving World
ARM 400 introduces the principles and practices of risk management and delivers a broad overview of what risk is, how to identify and analyze risk, and how to deal with certain financial risks.
My Top 3 Learnings in ARM400
- Risk Matrix
- A risk matrix is a tool used to assess and prioritize risks based on their likelihood and potential impact.
- Risk Quadrants
- A risk quadrant is a graphical representation divided into four quadrants to categorize risks based on their likelihood and impact.
- Risk Management and Internal Audit Roles
- In risk management, the focus is on identifying, assessing, and mitigating risks, while internal audit roles involve independent evaluation of internal controls and risk management processes to ensure effectiveness and compliance.
ARM 401: Holistically Assessing Risk
ARM 401 encompasses and assesses types of risks, including risks to physical property, crime, and risks that come from management and human resource issues.
My Top 3 Learnings in ARM401
- HAZOP
- The term HAZOP is derived from hazard and operability study, which is a comprehensive review of a process or system. A team of subject matter experts and stakeholders identifies the risks associated with a given process and recommends a solution.
- SWOT Analysis
- SWOT is an acronym for strengths, weaknesses, opportunities, and threats.
- Check out my article on the SWOT Analysis of Insurance Company.
- Risk Map
- A risk map visually represents risks by plotting them on a matrix based on their likelihood and impact, aiding in risk assessment and decision-making processes.
ARM 402: Successfully Treating Risk
ARM 402 builds on the other two courses, covering concepts of insuring against risk and financial strategies and considerations.
My Top 3 Learnings in ARM402
- Risk treatment techniques apply to hazard, operational, financial, and strategic risks.
- The Prouty Approach
- The Prouty Approach is a strategic planning methodology that emphasizes integrating risk management and value creation to drive sustainable organizational growth and resilience.
- Correlation and Covariance
- Covariance measures how two variables will change in relation to each other.
- Correlation measures the degree to which two variables are related.
- The higher the positive or negative number is, the stronger the relationship. The lower the number, the weaker the relationship. Whether the relationship is positive or negative has no bearing on the strength of the relationship.
ETHIC 311: Ethical Decision Making in Risk and Insurance
Learn to recognize ethical dilemmas and identify informed solutions to them.
My Top 3 Learnings in ETHIC311
- Differences between morals, laws and ethics
- Morals are principles that dictate behavior and entail deciding between right and wrong.
- Laws are codes that protect society by governing behavior.
- Ethics involve consideration of duty and of what is the right response when a conflict arises.
- Professionalism
- To fulfill the high level of trust needed for insurance transactions with the public, insurance and risk management practitioners should possess and exhibit the traits of professionalism, including commitment to high ethical standards, professional competence, sense of altruism, commitment to continuing education, participation in an association or a society, ability to think and act independently, and public recognition as a professional.
- Maintaining High Ethical Standards
- The insurance transaction is based on trust. Maintaining high ethical standards is crucial to an insurance professional’s preservation of this trust. The ethical standards to which risk and insurance professionals must adhere are rooted in three general areas:
- Regulatory requirements
- Social responsibility
- Economic outcomes
- The insurance transaction is based on trust. Maintaining high ethical standards is crucial to an insurance professional’s preservation of this trust. The ethical standards to which risk and insurance professionals must adhere are rooted in three general areas:
Conclusion
It took me 9 months to earn the Associate in Risk Management designation with a huge hole in my pocket. I believe I have spent a total of RM7,605.49 for all 3 subjects and the revision MCQ at the SMART QuizMe app. There are probably cheaper alternatives to learn risk management, but I find myself appreciating the things I have learnt from this designation due to the nature of my job in the insurance field.
Not to mention, if you are interested to continue on to earn your Chartered Property Casualty Underwriter (CPCU) designation, you can choose the ARM Path to CPCU.
