To Our Stakeholders:
Every new year presents numerous and unexpected challenges. The best laid plans require modifications to deal with issues that could not have been foreseen or anticipated. 2020 was that type of year for virtually everyone around the globe, especially in dealing with COVID. 2021 presented its own challenges and opportunities, but built on our 2020 learnings and successes.
GARP’s financials for 2021 show a year of record revenue growth. Total revenues increased by USD 19 million, a jump unmatched in GARP’s history. Yet expenses only increased a modest USD 1.7 million, in line with rising global costs.
This reflected a conservative approach to headcount and corporate expense management mirroring the uncertainties surrounding COVID and what was a changing and highly uncertain global marketplace for educational activities; and continued to position GARP for 2022’s uncertainties.
2021 also built on 2020’s successes in terms of dealing with a highly volatile global examination testing environment. We were able to provide Financial Risk Manager (FRM®) Exams to over 80,000 candidates, an increase of just under 13% from the year prior, while regularly handling local site COVID restrictions and changes which caused numerous examination cancellations and deferrals throughout the year.
We also streamlined exam candidate testing notice requirements, providing almost immediate notice of any local exam site changes resulting from local authorities making last-minute public safety decisions.
And we affirmatively considered the burdens these last-minute changes had on registrants by offering as much flexibility as possible to candidates by allowing free examination deferrals to the next two exam dates and free exam materials if the exam crossed into the next year.
The FRM program continued to flourish in 2021, retaining its status as the global standard for financial risk managers. But we also made major strides in solidifying our Sustainability and Climate Risk (SCR®) Certificate program as the world’s leading designation for professionals wanting to expand and demonstrate their knowledge of climate-related risk issues.
The SCR program was launched in 2020 during the pandemic and quickly established itself as the world’s leading climate risk educational program. 2020 saw 1,243 SCR registrations, a major success given the program’s launch was mid-year. However, 2021’s SCR registrant growth was exceptional with 4,297 candidates signing on to sit for the Exam, a 250% increase over 2020. 2022 will also show substantial program growth.
All GARP’s educational programs are designed to measure the practice-driven skills and knowledge required of a professional engaged in financial and/or climate risk management. Each program’s curriculum is regularly reviewed and updated by a committee of global experts who lend their time and expertise to ensure the programs are current and of the highest quality globally.
We want to thank the numerous committee members for their time, consideration, and interest. The importance of their work cannot be overstated. And the results speak for themselves.
GARP’s educational programs continue to be world-leading. But like the risk management profession, we don’t stand still, regularly looking for new opportunities to advance the field and make a difference.
In that regard, we started work in 2021 on two new risk-related initiatives. One is to enhance our climate risk activities, with the other addressing material issues around fighting financial crime. We expect to announce “next steps” with both in the fourth quarter of 2022.
All the above was in addition to expanding our already large lineup of webcasts and podcasts, increasing the number of GARP Chapters globally, adding to our membership offerings, building on our university outreach efforts around the world, and growing our social media communications and outreach.
This was made much easier to accomplish because of the support of our Board of Trustees. Their interest, expertise, guidance, and professionalism play a leading and highly-valuable role in GARP’s growth.
GARP is dedicated to remaining the world’s leading risk management association. And we will continue to provide our members and the industry with an ever-increasing array of educational materials and resources to advance the profession of risk management.
We hope that you enjoy GARP’s 2021 Annual Report.