Is Associate in Risk Management a must-have credential for insurance professionals?

Risk managers play an important role in helping businesses protect not just their assets and financial stability but also their reputation. But to be effective, these professionals must have the right set of skills to handle different risks. For this, proper training is key. 

One such program that helps equip future industry leaders with the necessary skills and knowledge is the Institute’s Associate in Risk Management (ARM).  

In this guide, Insurance Business delves deeper into this designation. We’ll provide an overview of the program, including what’s covered, who should take it, and what you can expect to learn. We also talked to one of The Institute’s executives, who explained how the ARM designation can help advance your insurance career.  

What is the Associate in Risk Management designation? 

The Associate in Risk Management is a program administered by The Institutes Knowledge Group for professionals who want to specialize in risk management. It consists of three core courses and an ethics course designed to prepare students for leadership roles in the field. Students who successfully complete the program earn the Associate in Risk Management designation.   

“Those who earn their ARM designation will gain key skills needed to assess and treat enterprise-wide risks, including data analysis, compliance, and more,” explains Adam R. Carmichael, CPCU, president of The Institutes Knowledge Group & Ethics Counsel. 

“Professionals will learn about both traditional insurance solutions and alternative risk treatment options, allowing them to make more informed decisions that align with an organization's strategic objectives. This knowledge will also empower them to lead risk management strategies and effectively communicate with data scientists, risk specialists, and other experts.” 

According to the ARM webpage, aspiring risk management and insurance (RMI) professionals can expect to gain practical skills and knowledge that they can apply to real world scenarios. These include: 

• a deep understanding of risk assessment and treatment 
• proven techniques for creating risk assessment strategies 
• how to collaborate with key stakeholders 
• navigating risks by understanding how laws and regulations impact an organization’s operations 

By completing the Associate in Risk Management program, industry professionals can also earn credits with the Chartered Property Casualty Underwriter (CPCU) designation. Find out what it takes to earn this credential in this guide.  

Who should enroll in the ARM program? 

Professionals who make everyday decisions based on risk can benefit from taking the ARM program. These include:  

• risk managers, analysts, and consultants 
• insurance agents and insurance brokers 
• agency principals 
• business continuity, supply chain, and safety and loss control professionals 
• chief financial officers 
• chief risk officers 
• claims managers and analysts 
• client executives in brokerage firms 
• cyber risk professionals 
• data analysts 
• employee benefits managers 
• insurance underwriters 
• municipal managers and executives 

The Associate in Risk Management designation is just one of the several credentials and certifications that can help advance your insurance career.  

How to earn Associate in Risk Management designation 

You can earn the ARM designation by completing The Institute’s program. Here’s what you need to know about the Associate in Risk Management program.  

Educational requirement 

There’s no minimum educational requirement to enroll in the program, so anyone interested can do so. But take note that the ARM is considered an advanced program more suited for professionals with a few years of industry experience. 

ARM courses 

The Associate in Risk Management program can take between six and nine months to complete. As mentioned, the program consists of three core courses and an ethics course: 

• ARM 400: Risk in an Evolving World 
• ARM 401: Holistically Assessing Risk 
• ARM 402: Successfully Treating Risk 
• Ethics 311: Ethical Decision Making in Risk and Insurance 

The ethics course is free and required for all designations administered by The Institutes. You only need to take it once. So, if you’re planning on earning multiple credentials – like Associate in Management (AIM) or Associate in Information Technology (AIT) – this is something to keep in mind. 

Now, let’s go over each of these courses. 

ARM 400: Risk in an Evolving World 

This introductory course teaches the fundamentals of risk management. It gives students an overview of what risk is and how to identify, analyze, and manage it. The course also provides key insights into risk management in the context of today’s economic, cultural, and regulatory environment.  

The table below provides a general picture of the ARM 400 course:  

 ARM 401: Holistically Assessing Risk 

This course helps students gain the skills and knowledge to assess and anticipate risks. It covers a range of risks from crime and property to cyber, social media, and reputational risks.   

Here’s an overview of the course: 

ARM 402: Successfully Treating Risk 

This course teaches aspiring risk management and insurance professionals how to develop effective strategies for addressing risks. It covers the different aspects of risk treatment. The course also discusses how to navigate legal, operational, and regulatory risks.  

Here’s how the course goes: 

Each of the core courses takes between four and six weeks to finish. To complete the courses, you will need to pass the exams, which we’ll discuss in more detail later.  

Ethics 311: Ethical Decision-Making in Risk and Insurance 

This course helps develop the skills needed to tackle ethical issues and cultivate trust and integrity in your day-to-day work. It discusses the following topics: 

• Ethical Behavior: Are You Operating on Solid Ground? 

• Professionalism: Do You Have What It Takes? 

• Acting Responsibly: What Would You Do? 

• Steps to Resolve Ethical Dilemmas: How Do You Determine the Best Solution? 

• Ethical Decision-Making Tools: Are You Stocked with the Right Assets? 

• Ethical Guidelines for Insurance Professionals: Can You Make the Right Call? 

The Institute’s ethics course can be completed in three to four hours. It can be taken any time during the program. To complete the course, you will need to pass an exam. You will be given unlimited attempts to do so. 

“Overall, the course curriculum provides RMI professionals with a structured framework that can help them predict and prevent potential losses, rather than solely detecting and repairing a loss after it occurs,” Carmichael says.  

If you want to specialize in life insurance instead, then the Chartered Life Underwriter (CLU) designation might be for you. Check out how you can earn this credential in this guide.  

ARM course exams 

All course examinations are taken virtually. These are given within a testing window, which you can select upon purchase. There are four testing windows: 

• January 15 to March 15 
• April 15 to June 15 
• July 15 to September 15 
• October 15 to December 15 

For the core courses, the exams consist of 50 questions that you will have to complete within 65 minutes. To pass, you will need to get 70 percent of your answers right.  

The exams are graded on a pass-fail basis. The Institutes will notify you right away of your exam results. Unlike the ethics course, you are given only one attempt to pass the core courses exams. If you fail, you will need to retake the course.   

 Once you’ve successfully completed the program, your Associate in Risk Management diploma will be mailed to you.  

Find out what it takes to become a Certified Risk Manager in this guide. 

How difficult is it to earn the ARM designation? 

“Students will need to invest time in studying and truly understanding risk management to earn their ARM designation, but it's designed to be achievable for working professionals,” Carmichael says.  

“The difficulty lies not in the complexity of the material, but in internalizing a lot of important information while developing on-the-job skills.”  

He adds that in 2024 alone, more than 1,250 people earned the Associate in Risk Management designation.  

“If they can do it, you can too,” Carmichael says. 

ARM program cost 

Each of the core courses costs about $399 to $499. A package includes: 

• practice quizzes that you can access via the QuizMe app 
• a simulated exam; you can take this only once 
• access to a discussion board, where you can communicate with other professionals 
• flashcards to help you remember key terms 

The materials are accessible within 15 months of purchase.  

The virtual exams, meanwhile, range from $249 to $329. You will be asked to choose a testing window during your purchase. 

If you’re still on the fence about enrolling in the ARM program, you can take a free sample course to help you decide. The sample course takes around 30 to 60 minutes to complete and comes with sample quizzes to test what you learned. 

How do you maintain your ARM designation? 

The Associate in Risk Management designation is a lifetime credential. Another benefit is that by completing the program, you also earn three of the five credits for the CPCU designation. ARM is also a prerequisite for the Associate in Insurance Services (AIS) designation. 

By passing ARM 400, you earn credit for the following designations: 

• Associate in Cyber Risk Management (ACRM) 
• Associate in Insurance (AINS) 
• Associate in Insurance Data Analytics (AIDA) 
• Associate in Surplus Lines Insurance (ASLI) 

“Once someone earns their ARM designation, they have the credential for life,” Carmichael explains. “So, the larger question becomes, how do you continually build on the value of your ARM designation into the future?”  

He says the answer is committing to life-long learning. 

“Forward-thinking risk professionals recognize that their expertise must evolve at the same pace as the threats they're tasked with managing, like cyberattacks, climate risk, and compliance. This dedication to staying innovative provides huge value for organizations. 

“Seeking to not only manage known risks, but to develop the analytical frameworks necessary to address emerging threats is what will turn ARM designation holders into risk leaders.” 

How can ARM designation help insurance professionals advance their career? 

Carmichael lists several ways insurance professionals can benefit from earning the Associate in Risk Management designation.   

“They will gain a wide range of skills – including how to identify and analyze risk, leverage risk models, and prepare for hazards – that will help them gain a holistic understanding of risk and make data-driven decisions,” he says. “This expertise can open doors to advanced roles in underwriting, loss control, claims, and risk management. 

“Plus, ARM is widely respected among top RMI companies. It signals to employers that designation holders can see beyond traditional insurance solutions and create integrated risk management programs for their organization and clients.” 

Get to know industry leaders who have earned the ARM designation by visiting our Best in Insurance Special Reports page. Bookmark this page to get first dibs on our special reports, where we feature the industry’s best and brightest.