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The Market, Liquidity and Asset Liability Management Risk Manager Certificate exam consists
of 60 questions. The syllabus is based on the PRMIA Market, Liquidity and Asset Liability
Management Risk Manager Handbook.
Registration for the exam is via the PRMIA website, and taking the exam is designed to suit the
needs of the busy risk professional. Be sure to read this entire document to view important
information that will help you to be a successful candidate.
We hope that you will join us in promoting the MLARM program as the standard for our
industry and that you will join in our efforts to ensure that it will continue to meet the needs
of our members and our industry.
CONTENTS
1 EXECUTIVE SUMMARY
2 PROGRAM DESIGN
2 PROGRAM DATES
AND LOCATIONS
3 FEES AND REGISTRATION
3 TAKING THE MLARM EXAM
5 MLARM SYLLABUS
6 PREPARING FOR THE
MLARM EXAM
PROGRAM DESIGN
KEY LEARNING OBJECTIVES
DESIGN RATIONALE The key learning objectives of the Market, Liquidity
The Market, Liquidity and Asset Liability Management and Asset Liability Management Risk Manager
Risk Manager Certificate program was created at Certificate are to:
the instigation of PRMIA members holding senior ■ Gain an appreciation for the role of Market Risk,
positions in the industry who felt there was a gap in Liquidity Risk and Asset Liability Management in
the market. It has been designed by industry leaders, a post-crisis financial services industry
all PRMIA members. ■ Understand and apply the underlying principles
of Market Risk
The Market, Liquidity and Asset Liability Management
Risk Manager Certificate is relevant to all risk-related ■ Describe the elements of Market Risk Governance
roles in financial services, in particular Market Risk and the benefits of such an approach
Staff, Treasury Staff, Financial Controllers and those ■ Gain an understanding of Market Risk
managing the balance sheet, Technology Managers, Measurement and Management
and Compliance and Legal Officers. Also, a grounding ■ Gain an understanding of Market Risk in the Trading
in Market, Liquidity and Asset Liability Management Book with a focus on the Business-Specific Context
techniques is becoming increasingly important for ■ Describe the elements of Commodities Market
front line staff from a process perspective in their Risk Management approaches
dealings with clients and market counterparts. ■ Gain an understanding of Market Risk Stress
Testing and its renewed importance after the
The Market, Liquidity and Asset Liability Management recent crisis
Risk Manager Handbook is a best practices guide to all ■ Understand and apply the underlying principle
elements needed for the successful implementation of Asset Liability Management
of an approach to managing each of these risks. ■ Understand the place of Interest Rate Risk and
Designed to deliver a deep, practical understanding Liquidity Risk within Market Risk, Liquidity Risk
of Market Risk, Liquidity Risk and Asset Liability and Asset Liability Management
Management in financial institutions, the Handbook is ■ Apply these elements in a Balance Sheet
written by an all-practitioner author team from major Management approach to risk management and
financial institutions around the globe. appreciate the benefits of such an approach
■ Describe the elements of FTP Governance and
READING MATERIAL Management and describe the benefits of
■ PRMIA Market, Liquidity and Asset Liability such an approach
Management Risk Manager Handbook ■ Describe the elements of FTP Methods and
understand its historical development
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FEES AND REGISTRATION REGISTRATION
Registration for the Market, Liquidity and Asset
Liability Management Risk Manager exam requires
FEES enrollment in the program. Enroll via this link:
Fees, relevant to your membership status, are given at www.prmia.org/mlarm
www.prmia.org/mlarm
When you enroll and pay the program fee, a
■ A digital copy of the MLARM Handbook is authorization to test email will be provided to you that
included with the program fee. you can use to schedule your exam at the center, date
and time of your choice.
■ Payment by credit card is required for online
purchases. Contact certification@prmia.org to
make alternative arrangements.
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ARRIVE ON TIME
It is very important that you leave enough CANCELLATIONS/CHANGES
time to arrive at the testing center early.
In recognition of the busy and changing
Candidates that arrive late to the test center schedules of risk managers, you may change
may not be permitted to test. The full charge your exam appointment without charge
for the exam will be made if you are not through the Pearson Vue system at
admitted for any reason. As these centers www.pearsonvue.com/prmia. Please note that
offer exams for other organizations as well, all change requests must be made at least
not everyone in the room will be taking the one business day before the testing date
same exam, so no assumptions should be or the entire exam fee will be forfeited.
made about when other candidates enter
Because of the flexibility in rescheduling,
or leave the testing center.
exam fees are non-refundable.
EXAMINATION ADMINISTRATION
Each testing center has an administrator who can assist candidates
with any questions that they may have. In the event of any incident
(computer failure, inadequate supplies, excessive noise, or any other
EXAM SECURITY
circumstance) which the candidate believes is not compatible with
good examination conditions, this must be brought to the attention of The Market, Liquidity and Asset
the examination proctor immediately upon the incident being noticed Liability Management Risk
— without continuing the exam. Failure to inform the proctor in this Manager exam is conducted
manner will invalidate any subsequent candidate incident reporting under secure conditions. Any
which cannot be substantiated by the test center. attempt by candidates to copy
questions, by any means includ-
Your exam results should be available within 15 business days of your ing unorganized memorizing,
test date and will be delivered to you via the PRMIA website which and to distribute these questions
you can access by logging in to the PRMIA website. You will find the to other individuals, will be
results within “My Profile.” treated as unethical behavior
and may result in penalties
against the candidate which
could include forfeit of any
PRMIA certifications, fees, and
possible expulsion from PRMIA.
Indictment to copy and usage of
copied questions may also result
in the same penalties.
CALCULATORS
An online scientific calculator, Texas
Instrument TI308XS, is part of the test
delivery system. No other materials may be
brought into the exam room with you. It is
suggested that candidates purchase the
hand-held version (TI-30XS) to fully
familiarize themselves with the calculator.
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MARKET, LIQUIDITY AND ASSET LIABILITY MANAGEMENT
RISK MANAGER CERTIFICATE SYLLABUS
Market Risk
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Asset Liability Management
& Funds Transfer Pricing
Chapter 7: ALM and the Recent Crisis Chapter 10: Liquidity Risk
■ Overall Causes of the Crisis ■ Overview
■ Balance Sheet Related Causes of the Crisis ■ Fundamentals of Liquidity
■ The Effects of the Crisis ■ Measurement and Management
■ In Focus: Lehman Brothers ■ Recent Developments
■ Responses to the Crisis
■ In Focus: The Irish Banking Industry Crisis Chapter 11: Balance Sheet Management
■ Into the Book: Lessons from the Crisis for ■ Introduction
Balance Sheet Management ■ The ALCO
■ Capital Management
Chapter 8: An Introduction to Asset Liability
■ Strategy and Products
Management
■ Crisis Management and the
■ ALM Overview
Contingency Funding Plan
■ An Introduction to Gaps
■ In Focus: Contagion between Risk Types
Chapter 12: Bank Funds Transfer Pricing (FTP)
■ Banking Book versus Trading Book
■ Introduction
■ ALM Objectives
■ FTP Governance and Management
■ Roles within ALM
■ FTP Methods and Historical
Development
Chapter 9: Interest Rate Risk
■ Other FTP Challenges
■ Overview ■ Conclusion
■ Components of Interest Rate Risk
■ Measurement
■ Management
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MLARM SYLLABUS SUMMARY
Number of Questions Percentage
in the Exam of the Exam
Chapter
1 Market Risk Introduction 1 5%
2 Market Risk Governance and Management 6 8%
3 Market Risk Measurement 7 12%
4 Market Risk in the Trading Books: 7 12%
Business-Specific Context
5 Commodities Market Risk Management 7 12%
6 Market Risk Stress Testing — 6 10%
Beyond the VaR Threshold
7 ALM and the Recent Crisis 5 8%
8 An Introduction to Asset Liability Management 5 9%
9 Interest Rate Risk 4 6%
10 Liquidity Risk 4 6%
11 Balance Sheet Management 4 6%
12 Bank Funds Transfer Pricing (FTP) 4 6%
Total 60 100%
PRMIA Market, Liquidity and Asset Liability Management Risk Manager Handbook
This Handbook will lead you through the main study points of the exam.
The Market Risk, Liquidity Risk and Asset Liability Management Risk Manager Handbook is a best practices
guide to all elements needed for the successful implementation of an approach to managing each of
these risks. Designed to deliver a deep, practical understanding of Market Risk, Liquidity Risk and Asset
Liability Management in financial institutions, the Handbook is written by an all-practitioner author
team from major financial institutions around the globe.
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