Global Association of Risk Professionals

Global Association of Risk Professionals

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Encyclopedia
The Global Association of Risk Professionals is an international not-for-profit organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...

 founded in 1996 by Marc Lore and Lev Borodovsky. GARP is open to individuals involved in financial risk
Financial risk
Financial risk an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default. Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss...

 and energy risk management.

GARP's mission is to advance the risk profession, through:
  • Professional education, training, and career development.
  • Standard-setting, testing and certification.
  • Expertise, insight and information related to risk management.
  • Promotion of best risk management practices globally.
  • Industry networking.


GARP provides certifications for Financial Risk Manager
Financial Risk Manager
The Financial Risk Manager designation is an international professional certification offered by the Global Association of Risk Professionals...

s (FRM) and Energy Risk Managers (ERP).

As of October 2010, the association claims 26,000 members in 195 countries. GARP members are employed by commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...

s, central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

s, investment banks, asset management firms, corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

s, government agencies
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...

, and academic institution
Academic institution
Academic institution is an educational institution dedicated to education and research, which grants academic degrees. See also academy and university.- Types of academic institutions include :...

s.

Other certifications offered by GARP include the International Certificate in Banking Risk and Regulation (ICBRR) and the Certificate in Risk Management for Islamic Financial Institutions.

Controversy


During 2001 GARP was affected by a scandal which resulted from the not publicly communicated transformation of GARP from a not-for-profit organization to a for-profit organization. This transformation was driven by the founding members of GARP. The scandal ensued after an anonymous email was circulated in the summer of 2001, raising concerns about GARP. Furthermore, 'Risk Magazine' reported that money was allegedly channeled from GARP to companies held by the wives of the two founders. No evidence of an impropriety has ever been provided. Subsequently GARP became a not-for-profit organization again and no reference to the history of the association is made on the GARP website.