Energy Risk Professional (ERP)
Candlefocus EditorThe ERP certification was created to fill a gap in the industry and to recognize individuals who have attained a level of technical and risk expertise. To be certified, individuals must demonstrate a comprehensive understanding of energy-related topics, risk management processes and the physical and financial risks involved in energy projects throughout the world. As such, many universities and professional organizations accept the ERP certification as being equivalent to an advanced degree in many countries. In the United States, individuals may consider a master’s degree as a benchmark to demonstrate the level of expertise acquired by passing the ERP exams.
The ERP certification exam consists of two parts. The Part I exam is focused on Energy Risk and Finance and covers topics including energy data science, key indicators, valuation and pricing, energy efficiency, and risk management principles. The Part II exam is focused on more advanced aspects of energy investment, including risk transfer techniques, pricing, portfolio management, and capital allocation. The additional topics covered in the Part II exam include energy regulatory developments, strategic and organizational considerations, and energy economics.
In recognition of the difficulty of passing both parts of the exam, the Energy Risk Professional title is highly sought after by those working in the energy industry. The certification is considered a major benchmark of expertise among both energy professionals and risk management organizations and offers valuable recognition, credentials, and career options to those with the title.
To obtain the ERP certification, individuals must demonstrate their knowledge and also must pass two exams, which require a blend of technical, financial and strategic expertise. Those who demonstrate their understanding and mastery of risk management through the ERP program will enjoy a number of advantages, including greater recognition and the potential for higher salaries. Unfortunately, those who have not yet passed Part I of the ERP exam will no longer have access to the exam upon its discontinuation in 2021.