CCRM Exam Preparation Resources
The CCRM Certificate is designed for self-study and is based on Practices for Credit and Counterparty Credit Risk Management together with PRMIA case studies.
Required Reading
Practices for Credit and Counterparty Credit Risk Management, written by an all-practitioner author team from major financial institutions around the globe is required reading for the program. This book will lead candidates through the main study points of the exam and is a best practices guide to all elements needed for the successful implementation of an effective risk management framework and the management of credit risk.
Case Studies
The following case studies are publicly available. They should be combined reading with the Practices for Credit and Counterparty Credit Risk Management.
| American Insurance Group (AIG) |
American International Group (AIG) accumulated massive exposures to credit default swaps through its Financial Products division, effectively insuring structured credit without adequate capital or risk controls. When underlying mortgage assets deteriorated, collateral calls triggered a liquidity crisis that required a government bailout to prevent systemic collapse. The case highlights failures in counterparty risk management, overreliance on ratings, and weak governance over complex credit derivatives. |
| Fannie Mae and Freddie Mac |
Fannie Mae and Freddie Mac expanded aggressively into mortgage-backed securities and subprime exposure, amplifying credit risk within the U.S. housing market. When housing prices declined, rising defaults severely impaired their balance sheets, leading to government conservatorship in 2008. The case demonstrates the dangers of implicit government guarantees, concentration risk, and inadequate stress testing of credit portfolios. |
| Long-Term Capital Management (LTCM) |
LTCM employed highly leveraged strategies based on quantitative models that assumed stable market relationships and low volatility. When market conditions shifted during the 1998 Russian crisis, correlations broke down and losses escalated rapidly, threatening broader financial stability. The collapse underscores the interaction between market risk and credit risk, particularly through counterparty exposure and leverage.
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| Lehman Brothers |
Lehman Brothers relied heavily on short-term funding to support a highly leveraged balance sheet concentrated in real estate and structured credit products. As confidence declined during the financial crisis, liquidity evaporated and the firm was unable to roll over funding, leading to bankruptcy in 2008. The case illustrates the link between credit risk, liquidity risk, and market confidence, as well as the systemic impact of large counterparty defaults. |
| Northern Rock |
Northern Rock pursued rapid growth through aggressive mortgage lending funded largely by wholesale markets rather than deposits. When wholesale funding markets froze during the 2007 crisis, the bank faced an immediate liquidity shortfall, triggering the first UK bank run in over a century. The case highlights the importance of funding diversification, liquidity risk management, and the interaction between credit growth strategies and funding risk. |
| The Failure of Silicon Valley Bank |
Silicon Valley Bank concentrated its exposure in the technology sector and invested heavily in long-duration securities, creating sensitivity to rising interest rates. As rates increased, unrealized losses grew and depositors - largely uninsured and interconnected - rapidly withdrew funds, causing a liquidity crisis. The failure demonstrates the combined impact of interest rate risk, depositor concentration, and poor risk management between different risk categories. |
Practice Exams
Make sure you’re ready on exam day by accessing PRMIA’s CCRM Certificate practice exam. The practice exam questions cover the entire spectrum of topics included in the certificate exam, ensuring you are prepared for any question that may come your way. The exam is timed to help you master time management skills as you prepare.
eCoach Course
Ensure you're fully prepared for the CCRM exam by taking advantage of the
CCRM eCoach course. This on-demand course offers over two hours of content that aligns with the Practices for Credit and Counterparty Credit Risk Management Handbook.
Want to give it a try? Start with the first lesson for free, and if you find it helpful, you can purchase the full course. If you’re a Sustaining member, the full course is included in your membership!