LONDON--()--The Institute of Risk Standards and Qualifications (iRSQ), an organisation established by Moody’s Analytics to develop and promulgate independent professional competency standards in financial risk, today announced the launch of the first global accreditation programme for applied risk management. Incorporating critical lessons from the financial crisis, the programme’s competency standards extend beyond a mastery of technical skills to emphasise judgement and decision-making as well as risk psychology and ethics.
“As the global financial crisis has clearly demonstrated, the practice of proper risk management is critical to the health and stability of global financial markets”
The Institute’s curriculum has been developed by financial professionals and industry experts, with governance and oversight provided by an independent advisory board. Operational and financial support is provided by Moody’s Analytics.
“As the global financial crisis has clearly demonstrated, the practice of proper risk management is critical to the health and stability of global financial markets,” said Angus MacLennan, Chairman of the Institute’s advisory board and former CEO of Fortis Merchant Bank. “Through the creation of the iRSQ, we aim to address gaps identified during the crisis and to help ensure that bank professionals meet the highest standards for financial risk proficiency, including both technical standards and ethical responsibility.”
The Institute has been officially recognised by the UK Office of Qualifications and Examinations Regulation (OFQUAL) to award professional qualifications in risk management. The iRSQ certification programme has also been endorsed as the sole standard for education and skills in applied risk management by the Financial Services Skills Council (FSSC), the industry body that oversees competency development for financial institutions in the UK, and several global financial institutions have adopted the iRSQ programme as a central element of their professional development processes.
“We are pleased that the industry is taking a substantial step in raising standards and promoting a comprehensive set of risk management competencies for finance professionals,” said Liz Field, CEO of the Financial Services Skills Council. “The iRSQ qualification is consistent with the renewed sector qualifications’ strategy pursued by the FSSC, and we believe that it will help to address the need for global consistency and validation of proper competencies in risk management.”
In its aim to promote a consistent global competency standard, the iRSQ will offer certifications to bank professionals worldwide and to their sponsoring institutions. The Institute will partner with regulatory and certification bodies to harmonise its global competency standards with robust local risk management qualifications. A number of such certification bodies as well as regulators in Europe, Asia and the Middle East are currently evaluating this program for local adoption.
The iRSQ certification includes the theory and fundamentals of financial risk management as well as a robust foundation in “real-life” decision-making through the use of scenarios and case studies. The programme also emphasises the organisational and cognitive biases that may affect risk judgement, such as behavioural factors, ethics, accountability, incentives and governance. Grounded in credit but focusing on an end-to-end approach to risk management, the curriculum addresses the interactions among credit, operational, market and liquidity risk, as well as regulatory requirements and portfolio strategy.
Registration is now open for institutions seeking to sponsor candidates for the certification exam. Registration for individuals will be announced at a later date. Further information for banking professionals, financial institutions or training providers seeking to offer exam preparation courses is available at www.rsqinstitute.com
About iRSQ
The Institute of Risk Standards and Qualifications (iRSQ) develops and promulgates independent competency standards in financial risk for bank professionals, including the first global accreditation programme for applied risk management. The Institute’s curriculum is developed by financial professionals and industry experts, with governance and oversight provided by an independent advisory board. Operational and financial support is provided by Moody’s Analytics. Additional information is available at www.rsqinstitute.com.
About Moody’s Analytics
Moody's Analytics is a leading provider of research, data, analytic tools and related services to debt capital markets and credit risk management professionals worldwide. The company's products and services provide the means to assess and manage the credit risk of individual exposures as well as portfolios; price and value holdings of debt instruments; analyze macroeconomic trends; and enhance customers' risk management skills and practices. Moody's Analytics is a subsidiary of Moody's Corporation (NYSE: MCO), which reported revenue of $1.8 billion in 2009, employs approximately 4,000 people worldwide and maintains a presence in 26 countries. Additional information about the company is available at www.moodys.com.
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