Energy Risk Professional (ERP): What It is, How to Become one

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Updated January 06, 2023

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What Is an Energy Risk Professional (ERP)?

Energy Risk Professional (ERP) is a professional designation awarded by the Global Association of Risk Professionals (GARP) to individuals who work in the oil, coal, natural gas, and 澳洲幸运5官方开奖结果体彩网:alternative energy industries. As of 2021, the designation w🔯ill no longer be offered.

Key Takeaways

Energy Risk Professional (ERP) is a professional designation provided by the Global Association of Risk Professionals (GARP).
The ERP designation is completed by individuals working in the oil, coal, natural gas, and alternative energy industries.
The ERP designation equates to advanced degrees in different nations, such as a master's degree in the United States.
The purpose of the ERP exam is to gauge the ability of an applicant to manage the physical and financial risks inherent in the world of energy.
GARP announced in 2020 that the designation will no longer be offered and that 2021 will be the last year exams are conducted; only for those who have completed Part I of the two-part exam.

Understanding an Energy Risk Professional (ERP)

People seeking this designation must complete a rigorous self-study program, pass a 180-question, eight-hour exam, have at least two years of qualifying work experience, and agree to the Global Association of Risk Professionals' professional code of conduct.

Successful applicants earn the right to use the Energy Risk Professional (ERP) 𝔉designation with their names, which can improve job opportunities, professional reputation, and pay. The Energy Risk Professional (ERP) program is developed by seasoned energy professionals to teach applicants about real-world scenarios.

GARP announced in 2020 that 2021 will be the last year the ERP exam will be offered as interest in the ERP designation has decreased, according to a study by the organization. As a result, it will no longer be possible to obtain an Energy Risk Professional (ERP) designation.

Attributes of an Energy Risk Professional (ERP)

The study program to become an Energy Risk Professional (ERP) covers physical energy markets, financial trading instruments, valuation and structuring of energy transactions, 澳洲幸运5官方开奖结果体彩网:risk management in financial trading, financial disclosure, 澳洲幸运5官方开奖结果体彩网:accounting, and 澳洲幸运5官方开奖结果体彩网:compliance.

Individuals with the Energy Risk Professional (ERP) designation may work for banks, academic institutions, consulting firms, 澳洲幸运5官方开奖结果体彩网:asset management firms, and a w💜ide variety of other o🌳rganizations concerned with energy risk.

The designation equates to a specific degree level. For example, the ERP designation is equivalent to an American master's degree, the Regulated Qualifications Framework Level 7 in the United Kingdom, the Ontario Qualifications Framework Level 12 in Canada, and the Hong Kong Qualifications Framework Level 6 in Hong Kong. Degree equivalents also apply in the European Union, Singapore, Australia, India, the United Arab Emirates, and South Africa.

To maintain the E🔜RP designation, members must participate in the Continuing Professional Development (CRP) program. This program ensures that professionals remain knowledgeable about industry🤡 trends, developments, and best practices. Available to members are podcasts, training courses, and articles.

The Energy Risk Professional (ERP) Exam

The Energy Risk Professional (ERP) Exam is taken to earn the ERP designation. It is designed to measure a candidate's knowledge of the major 澳洲幸运5官方开奖结果体彩网:energy markets and gauge their ability to manage the physical and𝔍 financial risks inherent in the complex world of energy.

The exam provides a comprehensive overview of all major energy markets, including the upstream and 澳洲幸运5官方开奖结果体彩网:downstream processes associated with eacꦉh, the trading and structuring of diverse energy commodities, and the identificati🌳on, measurement, and management of key physical and financial risks.

Candidates must successfully pass two multiple-choice exams: ERP Exam Part I and ERP Exam Part II. Part I consists of 80 questions, to be completed within four hours. This exam consists of questions testing the candidate's knowledge of physical energy 澳洲幸运5官方开奖结果体彩网:commodity markets. Part II consists of 60 questions, also to be completed within 4 hours. Part II evaluates the test-takers' knowledge of the application of energy d🌳erivatives and risk mitigation.

Additional Exam Details

Cost: As the exam is no longer offered, only Part II of the exam will be offered in 2021 for those who have completed Part I. The cost is $475 with an early registration cost of $350.
Prerequisites: None
Pass Grade: Pass/Fail
Work Experience: Two years of relevant work experience after the exam
Exam Date(s): May 15, 2021
Exam Results: Usually provided within six weeks
Official Exam Website:

What 🍬the Energy Risk Professional (ERP) Exam 🧜Covers

Part I of the exam focuses on the following:

Crude oil and refined product markets
澳洲幸运5官方开奖结果体彩网:Natural gas and coal markets
Electricity markets and power generation

Part II of the exam focuses on the following:

Financial energy products
Risk assessment and energy price modeling
Risk management tools

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Global Association of Risk Professionals. "." Accessed Dec. 1, 2020.
Global Association of Risk Professionals. " (ERP)." Accessed Dec. 1, 2020.
Global Association of Risk Professionals. "." Accessed Dec. 1, 2020.
Global Association of Risk Professionals. "." Accessed Dec. 1, 2020.

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