IRM International Certificate study guide
IRM International Certificate · Work through your exam, one topic at a time.
The Level 5 International Certificate in Enterprise Risk Management is an Ofqual-regulated qualification awarded by the Institute of Risk Management (IRM), regulated since September 2023. It is designed for anyone seeking a solid foundation in the theory and practice of effective risk management, from newcomers to experienced professionals looking to formalise their expertise. The qualification is delivered online through two modules, each requiring approximately 180–200 hours of study, and is assessed via a multiple-choice exam and essay assignments. It can be taken as a stand-alone certificate or as the first part of the International Diploma in ERM. The syllabus covers the principles and concepts of risk and risk management, including international standards such as ISO, COSO, and the Orange Book, risk frameworks, risk appetite, governance, and organisational resilience. It also addresses the practice of risk management, focusing on aligning risk frameworks with strategy, sustainability, embedding risk management, and the competencies required of risk professionals. Topics on this exam: Principles of Risk and Risk Management and Practice of Risk Management. The IRM International Certificate study guide has 2 sections and about 786 words.
01Principles of Risk and Risk Management
Domain 1 tests precise risk vocabulary and how risk management is governed: definitions, the risk/uncertainty distinction, appetite, tolerance and capacity, risk categories, the ISO 31000 principles and board oversight. ISO 31000:2018 defines risk as the effect of uncertainty on objectives. Effects can be positive (opportunity) or negative (threat); risk is not simply loss. Risk is not uncertainty: risk can be estimated with probabilities, uncertainty cannot.
410 words, about 2 min02Practice of Risk Management
Domain 2 tests application of the risk process: establishing context, identifying, analysing, evaluating and treating risk, then monitoring, recording and reporting it. Questions often give a scenario and ask which technique, treatment option or register field fits. ISO 31000 process: communication and consultation; scope, context and criteria; risk assessment (identification, analysis, evaluation); treatment; monitoring and review; recording and reporting. Communication and consultation run throughout.
376 words, about 2 minMore study resources for IRM International Certificate
- Practice questionsIn the ISO 31000 risk management framework, which term describes the effect of uncertainty on objectives, where the effect may be positive or negative?
- FlashcardsRisk. The effect of uncertainty on objectives.
- Cheat sheetRisk is the effect of uncertainty on objectives; effects are deviations from the expected, positive or negative, and objectives can be strategic, operational, financial or compliance-related.
- Key termsRisk. The effect of uncertainty on objectives, where that effect can be positive or negative.
- Study planDefine risk, uncertainty, hazard and opportunity in your own words and write one worked example of each drawn from your own organisation.
- Common mistakesEveryday language and insurance-adjacent intuition frame risk as harm only, while the syllabus frames risk as the effect of uncertainty on objectives, which includes both positive and negative deviation.
- Exam-day guideIRM exams can be taken at a test centre or via remote proctoring depending on the qualification and your booking.