GARP Exams

The Global Association of Risk Professionals

The Global Association of Risk Professionals (GARP) was founded in 1996 to establish industry standards for financial risk management. Best known for its Financial Risk Manager (FRM) credential, the non-profit organization serves over 150,000 members worldwide. Historically, GARP focused on credit, liquidity, and operational risk.

The regulatory environment shifted. Central banks and institutional investors now treat environmental threats as direct financial risks. In response, GARP introduced specialized credentials to quantify and manage these new variables, moving beyond traditional market risk.

The SCR Certification

The SCR (Sustainability and Climate Risk) tests a candidate's ability to measure and mitigate environmental threats within a corporate or financial context. Unlike entry-level ESG certificates that focus on broad sustainability concepts, the SCR requires analytical thinking and practical application of climate models.

The exam consists of 80 multiple-choice questions administered over four hours. It includes a multi-part case study to test applied knowledge. Candidates must understand the foundations of climate change, green finance instruments, transition planning, and net-zero frameworks. The test also covers climate scenario analysis, requiring candidates to interpret models from the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA).

GARP recommends 100 to 150 hours of preparation for the exam. Pass rates hover between 47% and 66%, reflecting a rigorous standard. The single-exam structure allows professionals to complete the credential in a few months, avoiding the multi-year commitment required by tiered programs.

Market Demand and Career Placement

Climate risk expertise is moving from a niche specialty to a core requirement in enterprise risk management. A 2024 GARP careers survey reported that over 20% of hiring managers prefer or require the SCR certificate for teams focused on sustainability and climate-related threats.

Employers in banking, asset management, and consulting use the credential to identify candidates who can navigate new ESG reporting mandates and physical climate risks. Professionals holding the SCR often step into roles like Climate Risk Analyst or ESG Risk Officer. Industry data indicates that specialists in these positions command salaries ranging from $90,000 for mid-level roles to over $150,000 for senior corporate sustainability leadership.

The European market, driven by strict ESG disclosure laws, shows the strongest demand for these skills, though North American and Asian markets are adopting similar requirements. Organizations face pressure from both regulators and shareholders to account for carbon exposure and transition risks. A certified professional provides the technical background necessary to translate climate data into actionable financial strategy.