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The Associate in Risk Management (ARM) designation is offered through a curriculum developed by the American Institute for Chartered Property Casualty Underwriters (AICPCU) and the Insurance Institute of America (IIA). The basic coursework is comprised of three courses and examinations leading to the designation. In recent years, the AICPCU and IIA have broadened the basic ARM designation with the ARM-P (Associate in Risk Management for Public Entities) and ARM-E (Associate in Risk Management-ERM) designations requiring additional coursework. Coursework is available in print format and online with public classes available in many locations.
The coursework for the ARM is developed by the IIA and is available directly from the institute or via third-party technical booksellers. Students may complete the coursework at their own pace or they may enroll in an instructor-led class offered by third-party educational vendors. Examinations are offered at electronic testing facilities known as Prometric Testing Centers. While the examinations are available throughout the year, students should be careful to order the proper course materials as they are frequently updated and an out-of-date text will not match with the examination questions. Students must successfully pass each course’s examination to earn the ARM designation.
ARM54-Risk Assessment is recommended as the first of the three courses in that it provides an overview of the risk management process discussed in the overall ARM curriculum. The coursework is divided into four segments to cover the basic risk management process, first-party loss exposures such as property losses, third-party loss exposures such as liability losses, impact to cash flow loss exposures and forecasting.
ARM55-Risk Control discusses the various exposures to loss an organization may incur and methods for minimizing the exposures. The course is divided into three segments, with a significant portion addressing first-party loss exposures such as property losses. Segment B discusses liability loss exposures and how proper management of claims can also minimize an organization’s exposure to loss.
ARM56-Risk Financing addresses how organizations fund losses when they occur. The course is divided into three segments, and is careful to explain insurance as only one facet of risk financing. Many alternates to traditional insurance and full risk transfer are addressed, such as self-insurance, retrospectively rated plans and captive insurance programs. The course also discusses additional financing options available in the non-insurance financial marketplace. Lastly, it covers contractual risk transfer to third-party indemnitors as a means of risk financing.
After completing ARM54, ARM55 and ARM56, students may elect to complete additional coursework resulting in additional designations. Successful completion of RMPE352 - Risk Management for Public Entities will earn an ARM designation holder the further designation of Associate in Risk Management for Public Entities (ARM-P). Completion of ERM57 - Enterprise-Wide Risk Management: Developing and Implementing earns the additional designation of Associate in Risk Management - ERM.
Living in Southern California, Tom Zuo is a risk-management professional with decades of experience. He has been writing since 1985, specializing in topics related to insurance and risk management. Zuo holds a Bachelor of Arts in English and mass communication.