Energy Risk Professional (ERP) Designation Explained
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Energy Risk Professional (ERP) Designation Explained

3 Min.

The Energy Risk Professional designation, previously granted by the Global Association of Risk Professionals, is no longer available as of 2021. The ERP study program provided valuable knowledge in physical energy markets, risk management, and financial trading instruments. While the ERP exam is no longer offered, individuals can still benefit from the program's resources and maintain their professional development through the Continuing Professional Development program. Although the ERP designation may no longer be obtainable, the skills and expertise gained through the study program can still enhance job opportunities and professional standing in energy risk management.

Basics

The Global Association of Risk Professionals (GARP) previously awarded the Energy Risk Professional (ERP) designation to individuals working in the energy sector. However, starting in 2021, this designation is no longer being offered.

Attaining the ERP Designation

The Energy Risk Professional designation is attained through a rigorous self-study program, an eight-hour, 180-question exam, a requisite two years of relevant work experience, and adherence to the Global Association of Risk Professionals' code of conduct. Achieving the ERP designation can enhance job opportunities, professional standing, and earning potential. This program, developed by seasoned energy professionals, imparts practical knowledge. However, GARP announced in 2020 that the ERP exam will no longer be offered after 2021 due to declining interest, rendering it impossible to obtain an ERP designation thereafter.

ERP Study Program

The ERP study program covers physical energy markets, financial trading instruments, transaction valuation, risk management, financial disclosure, accounting, and compliance. ERP designation holders can work in various organizations, including banks, academic institutions, consulting firms, and asset management companies, all focused on energy risk.

This designation is equivalent to a master's degree in the United States, Regulated Qualifications Framework Level 7 in the UK, Ontario Qualifications Framework Level 12 in Canada, and Hong Kong Qualifications Framework Level 6. Similar equivalencies apply in the European Union, Singapore, Australia, India, the United Arab Emirates, and South Africa.

To maintain their ERP designation, members must participate in the Continuing Professional Development (CRP) program, which offers resources like podcasts, training courses, and articles to keep professionals updated on industry trends and best practices.

The ERP Exam

The ERP Exam is the gateway to obtaining the ERP designation. It assesses candidates' knowledge of major energy markets and their proficiency in handling the inherent physical and financial risks. This comprehensive exam covers upstream and downstream processes in energy markets, trading of energy commodities, and risk management. Candidates must pass two parts: ERP Exam Part I, with 80 questions in four hours, focused on physical energy markets, and ERP Exam Part II, with 60 questions in four hours, assessing knowledge of energy derivatives and risk mitigation.

Part I covers:

  • Crude oil and refined product markets
  • Natural gas and coal markets
  • Electricity markets and power generation

Part II covers:

  • Financial energy products
  • Risk assessment and energy price modeling
  • Risk management tools

Conclusion

While the Energy Risk Professional designation was previously available, it is no longer being granted as of 2021. However, the ERP study program provided valuable knowledge in physical energy markets, risk management, and financial trading instruments. Although the ERP exam is no longer offered, individuals can still benefit from the program's resources and maintain their professional development through the Continuing Professional Development program. While the ERP designation may no longer be obtainable, the skills and expertise gained through the study program can still enhance job opportunities and professional standing in the energy risk management field.

Energy Risk Professional (ERP)
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