You get what you earn

Rick Harbaugh's letter last month, "You Get What You Pay For," discussed the benefits and responsibilities of RMA membership. As I was thinking about RMA's very successful new Credit Risk Certification (CRC) program, a variation of Rick's title immediately came to mind. There's been a high level of enthusiasm shared by the more than 160 newly designated CRCs in the short time that this program has been available. Almost without exception they will attest that the CRC is no puff program and that "you get what you earn." The challenge of the CRC justifiably makes those who passed the exam that much prouder of a designation that attests to the essential blend of skills, knowledge, and experience that place them at the top of their chosen field.

In a follow-up survey, we asked participants--whether they passed or not--several questions, and I'd like to share some responses with you. When asked about why they chose to seek a CRC, more than half said they were personally motivated, and about 10% reported they were encouraged by senior executives. As time goes on, I would expect those percentages to increase, particularly that for senior executive encouragement. Another question--and remember how new this program really is--was whether participants felt that the CRC process had been worth their investment of time and money: An astonishing 93% said it was.

Here's just a sampling of some individual responses:

* [The CRC] has reaffirmed my credit skills to myself, my peers, and the management of my institution.

* The study material was outstanding and exactly what I was looking for to further nay credit skills. I found the exam to be extremely difficult and, at times, frustrating. However, I did pass.

* [The CRC] is a professional designation, and for now I stand apart from everyone else in the field.

* [The CRC] helps validate my worth to the company.

I congratulate the banking professionals who now can place that CRC designation after their names. Those who have not yet passed still deserve praise for realizing the strength of the CRC and for aspiring to be leaders in credit risk management. I hope all will sign up in June or July to take the exam again during the next testing window from October 3 to November 30. And I encourage other bankers now thinking about this professional designation to find out more at our Web site (www.rmahq.org); an application to take the test also can be completed online.

Of course, RMA encourages leadership through a number of venues, including the Leadership Conference that took place last month. When you read any of the RMA Profiles that appear in The RMA Journal, you quickly come to appreciate both the efforts of RMA chapter leadership and the benefits our Profile subjects feel they've gained. I cannot praise our chapters too highly or too often. They are the lifeblood of, and a strong differentiator for, RMA. We celebrate their vitality and successes and are grateful for the additional energy they give to all our efforts.

Speaking of efforts, do take a look at the results of RMA's survey on economic capital, the "common language" of enterprise risk management, in this issue. Also, the Philadelphia Fed's Spyro Karetsos, a leader in the Federal Reserve's own ERM efforts, agreed to contribute an article on the Fed's progress toward ERM.

If you want the best and most current thinking on credit portfolio management, I'm pleased to direct you to several articles in this month's Journal, introduced by Gene Guill, managing director at Deutsche Bank and member of the Journal's Editorial Advisory Board. Gene was instrumental in developing the theme for this issue and is another example of leadership at RMA. As many of you leave for vacations this month and next, do take along The RMA Journal.

Maurice H. Hartigan II, RMA President & CEO

COPYRIGHT 2005 The Risk Management Association
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