ARM 56 Risk Financing
Note that this module will be offered for the last time in the manner listed below from January 2020. Afterwards the module will be adapted to the new material and will be called ARM 402: successfully treating risk. scheduled course start is approx. 5 October 2020. - You will find the overview of the new ARM further education under this link. More news will follow soon. You are also welcome to subscribe to our newsletter.
Risk Financing is a module of the Associate in Risk Management (ARM) and Associate of Reinsurance (ARE) Designation. This certificate provides students with a comprehensive overview of the techniques risk management professionals use to finance, or pay for, the negative consequences of risk events. These techniques usually incorporate a blend of risk retention and transfer.
Goals
The first part of the course provides a broad overview of risk financing as one of many risk treatment techniques. Student will be explained how risk financing alternatives should be examined in light of all of an organzations risks, including both pure an speculative risks. The middle part concentrates on alternative financing techniques for hazard risk including insurance, self-insurance, retrospective rating, reinsurance, captive insurance and contractual risk transfer. The mechanics, advantages and disadvantages of each technique are discussed in detail. The last part of the course covers financial risk and capital markets.
Benefits:
- Construct a solid background in the unique risk management needs of public entities.
- Develop a holistic view of public entity risk management with an understanding of specific stakeholders’ expectations.
- Manage claim and litigation costs through a technical understanding of the legal environment of public entities.
Target group
- Risk managers of all kind of industries and executives concerned with risk, commercial lines underwriting and reinsurance professionals, risk management consultants, chief executives in brokerage firms, agency principals, agents and brokers in commercial insurance fields
- Internationally oriented professionals
Topics
- Introduction to risk financing
- Estimating hazard risk
- Transferring hazard risk through insurance
- Self-insurance plans
- Retrospective rating plans
- Reinsurance
- Captive insurance
- Contractual risk transfer
- Transferring financial risk
- Transferring hazard risk to the capital markets
- Allocating costs of managing hazard risk
Timeframe of your studies
Around 6 to 10 hours per week are recommended for this training (depending on your experience in the fields and previous studies). Prepare yourself to invest 4-6 hours for the prereading and getting familiar with each chapter (by reading the according assignment in the text book which are about 30 pages per week). We have decided to structure the classes in 3 full-day seminars to allow a more concentrated stile of interaction. It is also recommended to rework each assignment by doing the exercises in the course guide or repeting the extra material shared with the students after the class. Additionally, set aside time (including a last full-day seminar) to prepare for the exams. Before starting, please be aware to carefully schedule the 4 month period for this module. The last day to do or repeat this exam will be March 12, 2020.
Learning Design
Blended Learning Design
Course material
Text book, course guide and online exam preparation tool
Extra documentation, exercises and supplementary literature
One Exam
Exam
We will register you for the next possible exam date after completing the module unless you arrange for a replacement date. Exams may be repeated.
Certificate
Electronic certificate after passing the exam ARM 56 successfully
FAQ
Which prerequisites and/or requirements are compulsory for the ARM training?
There are no prerequisites or requirements to a certain specialized level needed for this course. However, due to the course material and the evening courses held in English, your English knowledge must be good (Proficiency level). It is nevertheless recommended to have at least 2 years of training or experience in the insurance industry or the security / health & safety sectors.
What is the recommended study time for this course?
Around 6 to 10 hours per week are recommended for this training (depending on your experience in the fields and previous studies). Prepare yourself to invest 4-6 hours for the prereading and getting familiar with the topics for each class (reading the according assignment in the text book (about 30 pages per week). 2 to 3 hours for attending the evening classes. It is also recommended to rework each assignement by doing the excercises in the course guide or reading the extra material shared with the students. Additionally, set aside time (including a 1 day seminar) to prepare for the exams. Before starting, please be aware to carefully schedule the 4 month period per module so that you have enough time alongside your vocational and personal activities.
How are the evening courses organized and delivered?
Usually one assignment per evening class. The coach reviews the most important parts of the chapter, introduces to on the job practices in different contexts and challenges the students with small group work, discussions and tasks.
What requirements are needed to achieve the ARM diploma?
The only requirement for an ARM diploma is to succeed in the 3 written exams of ARM 54, 55 and 56 and to fulfil the Ethical Online Training and Exam. There are no oral exams and no reports to be written.
How are the examinations arranged? Can they be repeated?
They are provided by The Institutes and organized by the IIS. The ARM exams consist of 65-75 questions (multiple choice) and last 2 hours each. There are 4 test dates which are offered per year. The examinations may be repeated.