Energy Risk Professional (ERP)

What the ERP was

The Energy Risk Professional (ERP) was a credential awarded by the Global Association of Risk Professionals (GARP) for practitioners in energy markets—oil, coal, natural gas, electricity, and alternative energy. The program focused on the intersection of physical energy markets and the financial instruments used to trade and hedge energy risk.

The program closed in 2021; GARP announced in 2020 that 2021 would be the last year exams were offered. No new ERP designations are being granted after that date.

Why it mattered

Earning the ERP signaled specialized knowledge in:
* Energy commodity markets (upstream and downstream processes).
* Valuation and structuring of energy transactions.
* Use of financial energy products (derivatives) for hedging and trading.
* Measurement and management of physical and financial risks.
* Relevant accounting, disclosure, and compliance issues.

GARP and other organizations considered the ERP roughly equivalent to advanced academic qualifications (for example, a master’s level in some jurisdictions), which helped its recognition across banks, consultancies, asset managers, utilities, and energy companies.

Requirements (while the program was active)

To earn the ERP, candidates had to:
* Complete rigorous self-study covering physical and financial aspects of energy markets.
* Pass two multiple‑choice exams:
* Part I — focused on physical energy markets (crude/refined products, natural gas, coal, electricity); typically 80 questions, 4 hours.
* Part II — focused on financial energy products, price modeling, risk assessment and management; typically 60 questions, 4 hours.
* Demonstrate at least two years of relevant work experience.
* Agree to GARP’s professional code of conduct.
* Maintain the credential through continuing professional development (CPD) activities.

Exam format and outcomes

• Scoring: Pass/fail.
• Results were usually provided within several weeks.
• While the program was active, GARP provided study materials and the curriculum emphasized real‑world applications and case scenarios.

Career relevance

ERP holders typically worked in roles that required managing energy price and operational risk, such as:
* Risk management and trading at energy firms and banks.
* Consulting and advisory roles on energy transactions.
* Asset management and investment roles focused on energy commodities.
* Regulatory, compliance, and analytical roles in utilities and power companies.

End of the program

GARP discontinued the ERP program after 2021 due to declining interest and changes in the professional certification landscape. Existing ERP designees retain their credential, but new candidates can no longer obtain it.

If you work in energy risk today, alternative credential and learning pathways include:
* Other GARP programs (e.g., FRM) where relevant.
* Industry certifications, specialized master’s degrees, or targeted short courses in energy finance, commodities trading, and risk management.
* Professional development through CPD, industry conferences, and on‑the‑job experience.