June 30, 2019
To Our Stakeholders,
We are pleased to present the GARP 2018 Annual Report.
In 2018, GARP saw another year of significant growth in our flagship FRM® program, demonstrating its continued global acceptance as the standard for risk management professionals around the world.
Registration for the FRM in 2018 approached 68,400, a 20% increase over 2017 — itself a record-breaking year. The global popularity of the FRM speaks to the rigor, relevance and utility of its curriculum and the considerable collaborative effort by the practitioners, academics and regulators who contribute time and expertise as members of the FRM Committee. They deserve much credit for the success of this program.
In 2018, ERP® Exam registrations kept pace with 2017, an accomplishment given the challenges and headwinds the energy market presents. We will increase our global ERP outreach in 2019, continuing to seek new ways to introduce the program and promote its value.
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In January 2018, we launched the GARP Risk Institute under the leadership of Jo Paisley and Mark Carey, expanding our research-driven focus and opening an exciting new chapter for the Association.
The GARP Benchmarking Initiative, now in its seventh year, continued its highly valued analytic work in 2018, engaging in 17 cross-border studies for a total of 51 since its inception. The GBI participant roster increased to 119 members, including the addition in 2018 of 33 asset management firms. In 2019, GBI plans to expand its activities in analysis of bank capital to include asset management, climate risk and third- and fourth-party risks.
GARP took full advantage of its unique position as a global, independent, non-partisan association of practitioners, academics and regulators by sponsoring and conducting executive forums, workshops, networking events and chapter meetings. By facilitating these meetings and coordinating various global risk management initiatives, we help risk managers better understand risks, opening communication channels that might not otherwise exist without an organization like GARP.
In our convener role we created opportunities throughout the year where executives, regulators and academics shared information and constructively debated current issues and ideas. We hosted the ninth GARP Global Risk Forum in partnership with the Japanese Financial Services Agency in Tokyo in November, attended by 65 senior-level risk professionals. This invitation-only event provided an opportunity to review issues such as systemic risks 10 years after the great financial crisis; the risk-related effects of artificial intelligence and big data advances and use; model risk, and whether regulatory fragmentation is jeopardizing the effectiveness of post-crisis reforms. At the GARP Buy Side Risk Managers Forum, senior asset managers met in New York twice in 2018 to review and debate topical issues affecting the asset management industry.
At the other end of the career spectrum, our Academic Partnership program collaborated with 66 universities and business schools in 21 countries, encouraging adoption of FRM- and ERP-aligned curriculum and introducing risk management as a career option. We also launched a GARP Lunch and Learn program at banks and investment firms in the US and Europe to support risk managers in their early years.
Of equal importance to all the above, our organization is on firm financial footing. This enables us to regularly consider and invest in new initiatives that further the profession of risk management.
We believe that throughout 2018 we significantly contributed to the building of a global profession and discipline of significant value. We’re proud of what we accomplished in 2018.
We thank you for your continued support of GARP and, as always, welcome any thoughts or ideas about how we can best contribute to the growth and professionalization of risk management.
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Strong growth in FRM registrations reflects a parallel increase in the stature of risk management.
After moving to two parts in 2016, ERP registrations stabilized in 2018.
