the principles

Participant Guidebook
of for

RISK MANAGEMENT
ERMA-EBA
Exam-Based
Assessment
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Benefit of ERM Certification
What’s the benefit of having a certified ERM
professional?
An employer is interested in ensuring that the ERM policies and practices are
implemented in the organization in an effective and efficient manner.
Conceptualizing the policies and practices, designing the systems and
procedures, and implementing them would require ERM professionals who have
the right mix of technical and behavioral competencies.

ERM is comparatively a new field of management. With the release of the ISO
31000 standard, it has become a priority item for organizations to adopt and
implement. A certified ERM professional would be able to guide the Employe
organization to put in place policies and practices that meet the ISO 31000
requirements and ensure its proper implementation and adoption.

How would a certified ERM professional help

your organization?
In particular, a certified ERM professional would enable the Employer to:
1. Have a clear and concise understanding of the competencies needed by an
employee who holds the ERM responsibilities,
2. Prepare and develop the employee to handle the responsibilities in an
effective and efficient manner,
3. Get the employee certified through a thorough and proficient program of
certification that matches the ISO 31000 requirements and,
4. Prepare a cadre of ERM professional within the Employer organization.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

ERMA EBA
Introducing the EBA
EBA or Exam-Based Assessment, is part of the ERMA Certification Pathways,
which will enable a candidate to participate in a professional assessment,
leading to one of ERMA’s professional designations.

The EBA is available through two sub-pathways, the online EBA, where
participants are required to take an online exam, and the onsite EBA, where
participants are required to undergo in a paper-based test conducted in a
physical facility prepared by an Exam Partner, officially appointed by ERMA.

In the EBA, participants will be assessed for their technical knowledge and skills
based on the answers to the questions posed by within the exam.

A good knowledge of the ERM principles, framework and processes as well as

hands on experience in practicing the skills would be able to score well in the
assessment.

EBA would also include a set of behavioral questions, which are focused on
disclosing examples of behavior in the past.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

What certification is available through the EBA?
By participating in the EBA, if you pass the assessment, you will receive the
ERMAP or ERMCP professional designation, depending on your final score.

ERMAP and ERMCP are professional ERM designations issued by ERM A

(Enterprise Risk Management Academy), designed on the ground of ISO 31000
Risk Management International Standard.

ERMAP (ERM Associate ERMCP (ERM Certified

Professional) is given to Professional) is given to
professionals who are comparatively professionals who are well
less experienced in the field of experienced in the field of enterprise
enterprise risk management, but are risk management and can
able to demonstrate an integrated demonstrate their knowledge,
and comprehensive knowledge of experiences and skills in managing
the essential principles and the ERM process, which consists at
fundamental concepts required for least the following processes:
managing enterprise-wide risks. setting the context, identifying risk,
assessing risk, mitigating risk, and
monitoring it.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

What kind of result will participants receive?
After someone has undergone the EBA, they are either given the mark of
‘Competent’ or ‘Not Competent’ to be qualified as ERMAP or ERMCP.

If they pass, they will received a Letter of Appointment, Certificate Code of

Conduct, along with the e-certificate.

EBA Assessment Components

The Exam-Based Assessment, you assess your Technical Competency, as well
as your Behavioral Competency.

Technical Competency
The technical competency section is divided into 3 components:
1. Principles of Risk Management
2. Risk Management Framework
3. Risk Management Process

You would need a good knowledge of the ERM principles, framework and
processes as well as hands on experience in practicing the skills would be able
to score well in the assessment.

Each component of the technical competencies has four levels of proficiency

from level 1 to level 4, as can be seen in the competency matrices, available in
the next section.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

Competency Matrix for Principles of Risk Management

Level Description
Level 1 A working knowledge of ISO31000 risk management principles and is
able to give examples or illustrations of how the principles are being
applied in straight forward circumstances.

Level 2 A working knowledge of ISO31000 risk management principles and is

able to give examples or illustrations of how the principles are being
applied in circumstances of limited complexity.

Level 3 A thorough knowledge of ISO31000 risk management principles and

is able to give in-depth illustrations of how the principles are being
applied in complex circumstances.

Level 4 An expert knowledge of ISO31000 risk management principles and is

able to give a comprehensive illustration on how those principles are
being applied in highly complex circumstances.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

Competency Matrix for Risk Management Framework

Level Description
Level 1 A working knowledge of corporate regulatory environment, corporate
governance principles and the company’s accountability; and is able
to give examples or illustrations on how they relate to ISO31000
framework of managing risks in straight forward circumstances.

Level 2 A working knowledge of corporate regulatory environment, corporate

governance principles and the company’s accountability; and is able
to give examples or illustrations on how they relate to ISO31000
framework of managing risks in circumstances of limited complexity.

Level 3 A thorough knowledge of corporate regulatory environment, corporate

governance principles and the company’s accountability; and is able
to give examples or illustrations on how they relate to ISO31000
framework of managing risks in complex circumstances.

Level 4 An expert knowledge of corporate regulatory environment, corporate

governance principles and the company’s accountability; and is able
to give examples or illustrations on how they relate to ISO31000
framework of managing risks in highly complex circumstances.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

Competency Matrix for Risk Management Process

Level Description
Level 1 A working knowledge of ISO31000 process of managing risks, and is
able to give examples or illustrations on how such process is being
exercised in straight forward circumstances.

Level 2 A working knowledge of ISO31000 process of managing risks, and is

able to give examples or illustrations on how such process is being
exercised in circumstances of limited complexity.

Level 3 A thorough knowledge of ISO31000 process of managing risks, and is

able to give examples or illustrations on how such process is being
exercised in complex circumstances.

Level 4 An expert knowledge of ISO31000 process of managing risks, and is

able to give examples or illustrations on how such process is being
exercised in highly complex circumstances.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

Behavioral Competency
The behavioral or soft competencies would be assessed through questions that
are focused on disclosing examples of your professional behavior in the past.

In the EBA, you will be assessed in the following behavioral competencies:

Competency Cluster Competencies

Delivering stakeholder focused services - Stakeholder focus
- Service Facilitation

Preventing and solving problems - Strategic thinking

- Problem solving

Managing resources and performance - Resource management

- Result orientation

Managing change - Managing change

Building capability - Teamwork

- Communication

Leadership - Leadership
- Ethics and values

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

EBA Model
Exam Structure
The EBA for ERMAP is consisted of 150 questions, which are divided into two
question types:

Technical Competency Section

The first part of the exam contains 140 multiple choice questions, each of
them carry a weight of 1 point. The questions are focused on ERM technical
competency, and each of them represent a certain level of proficiency.

Behavioral Competency Section

The second part of the exam contains 10 behavioral competency questions,
each of them weights 2 points.

Assessment Scoring
The maximum score of the EBA is 160 points, and the required passing grade is
for ERMCP is 70% of the maximum score, or 112 points, and the required
passing grade for ERMAP is 60% of the maximum score or 96 points.

Language
The official and accepted language of the EBA is English.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

EBA Rule of Conduct
To participate in the EBA, participants must agree to comply to the following
Rule of Conduct

1. No person will be allowed in an examination room during the examination

except the candidates concerned and those supervising the examination,
approved by the Chief of Exam Organizer.
2. Candidates must appear at the examination room at least fifteen minutes
before the commencement of the examination.
3. Candidates shall bring their photo identification (signed Photo ID) and place
it in a conspicuous place on their desks. Photo identification may include
any one of the following, as long as it contains a photo and a signature:
valid National ID (any country), OR up-to-date Passport (any country) OR
current Driver´s License (any country).
4. Chief of Exam Organizer has the authority to assign seats to candidates.
5. Candidates shall not communicate with one another in any manner
whatsoever during the examination. Candidates may not leave the
examination room unescorted for any reason, and this includes using the
washroom.
6. No materials or electronic devices shall be used at the examination except
those authorized by the Chief of Exam Organizer. Unauthorized materials
include, but are not limited to: books, class notes, or aid sheets.
Unauthorized electronic devices include, but are not limited to: cellular
telephones, laptop computers, calculators, MP3 players (such as an iPod),
Smartphone (such as Blackberry, iPhone, etc), tablet computers (such as
iPad, Galaxy Pad, etc), pagers, electronic dictionaries, Compact Disc
Players, and Mini Disc Players.
7. Candidates who bring any unauthorized materials or electronic devices into
an examination room or who assist or obtain assistance from other
candidates or from any unauthorized source are liable to penalties.
8. No candidates may smoke in an examination room or in any building in
which an examination is being held, or behave in any other way which
distracts or is likely to distract other candidates.
9. Candidates may not use paper in an examination except that which is
provided for them.
10. In general, candidates will not be permitted to enter an examination room
later than fifteen minutes after the commencement of the examination, nor

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

 to leave except under supervision until at least half an hour after the
examination has commenced.
11. Candidates shall remain seated at their desks during the final twenty
minutes of each examination.
12. At the conclusion of an examination, all writing shall cease. The Chief of
Exam Organizer may seize the papers of candidates who fail to observe this
requirement, and a penalty may be imposed.
13. Examination books and other material issued for the examination shall not
be removed from the examination room except by authority of the Chief of
Exam Organizer.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

EBA Question Examples
Below you will find 5 questions to help you prepare yourself for the EBA. These
questions will provide you a short simulation on the EBA process that you will
undergo.

1. Your company’s current credit risk exposure arising beyond the

company’s risk tolerance. As a corporate risk manager what is the
most reasonable action should be taken?
a. To remind the company’s board of directors and provide a
recommendation to increase the company’s risk tolerance above the
current credit risk exposures whilst some actions are taken to get
them back within the company’s risk tolerance.
b. To remind the company’s board of directors and provide a
recommendation to mitigate the impact whilst some actions are taken
to get them back within the company’s risk tolerance.
c. To pressure the concerned credit risk manager to get the current
credit risk exposure back within the company’s risk tolerance
d. To pressure the concerned credit risk manager to get the recovery of
their bad credits

2. The followings are the aspects of the organization's external context,

except:
a. Policies, objectives, and the strategies that are in place to achieve
them.
b. The natural and competitive environment, whether international,
national, regional or local.
c. Key drivers and trends having impact on the objectives of the
organization.
d. Perceptions and values of external stakeholders.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

3. The introduction of risk management and ensuring its on-going
effectiveness requires strong and sustained commitment by
management of the organization as well as strategic and rigorous
planning. In that perspective, management should:
a. Engage appropriate external stakeholders and ensure an effective
exchange of information.
b. Use communication to build confidence in the organization.
c. Define an appropriate timing and strategy for implementing the
framework.
d. Assign management accountabilities and responsibilities at
appropriate levels within the organization.

4. When risk is composed of likelihood and impact of certain event that

would affect our objective, the internal control applied in the
organization are mostly to reduce:
a. The impact of certain event to occur
b. The likelihood of certain event to occur
c. Both the likelihood and the impact of certain event to occur
d. None of the likelihood nor the impact of certain event to occur

5. Organization of all types and sizes face ________________ that can affect
the achievement of their objectives. The blank underlined should be
filled by:
a. A range of risks
b. A particular risk
c. The same risks
d. The similar risks

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

Thank you for your participation in the EBA
If you have any questions about the EBA process, please do not hesitate to
contact our Certification Registrar at certification@erm-academy.org, or
ERMA’s National Coordinator in your country.

Official Guidebook for ERMA-EBA

Exam-Based Assessment

ERMA - Enterprise Risk Management Academy - www.erm-academy.org

Official Guidebook for ERMA-EBA

(c) 2011 ERMA - All Rights Reserved

This document is intended to be available only to the persons entitled to

receive the confidential information and legal privileges it may contain.
Any duplication, reproduction, or modification in any form, in whole or in
Official
part, Guidebook
without prior forofERMA-EBA
written consent ERMA is strictly prohibited.
Exam-Based Assessment
For further information, please visit our portal at www,erm-academy.org
or send an email to info@erm-academy.org
ERMA - Enterprise Risk Management Academy - www.erm-academy.org