1. Nomination of Thomas Eugene Day to the Board of the Professional
Risk Managers’ International Association (PRMIA), October 4, 2010
Vision Statement:
As a result of the recent period of financial turmoil, many changes stand before the risk
management profession and the broader global financial landscape. We are entering a period
of fundamental change in how financial and non‐financial firms approach enterprise and
financial risk governance; a period of change that will have long‐lasting effects on the
profession and will fundamentally alter the manner in which organizations, risk professionals
and market supervisors identify, measure and control risk. These changes will directly impact
the financial performance, capital adequacy and business model of many organizations across
the financial system.
The financial market turmoil of 2007 – 2009 has left us with many lessons, perhaps the more
profound being the limitations of our knowledge regarding the nature of risk and risk
management, the overarching need to improve our understanding and measurement of
systemic risk, the criticality of establishing incentives aligned with the stakeholder interests, the
importance of transparency – at the product and market level ‐ and the dangers leverage,
particularly its many opaque and complex forms. In some cases, it has been suggested that risk
management failed; in others it has been suggested that risk management didn’t fail, rather its
disciplines weren’t enforced – that risk management became a regulatory or compliance issue,
not an institutional core value and fundamental institutional practice. Regardless of
perspective, it is clear to market participants – both financial and non‐financial ‐ that the need
for improvement in risk management and financial risk governance is acute.
While the economy continues to heal, now is the time to step‐forward and create meaningful
opportunities to educate the risk management profession on what we’ve learned; lessons that ‐
when internalized ‐ will allow us and those in our profession to work toward a more complete
understanding of risk and risk‐transmission mechanisms. These lessons will teach us about the
importance of incentives, governance structures, the criticality of economic capital strength – in
both level and form – and capital planning, and the need to hold sufficient unencumbered
liquidity, actual and contingent, to withstand dramatic upheavals in the market. We know that
the mechanisms that create, distribute and – in times of crisis – amplify market corrections are
difficult to control; that systemic risk ‐ particularly asset‐price bubbles ‐ are exceedingly hard to
identify on an ex‐ante basis. That said, doing nothing isn’t an option. Much can be done to
curb excesses and better understand the interconnectivity of risk factors, particular as it relates
to issues such as transparency, disclosure and market discipline. These changes will naturally
lead to new and innovative ways to quantify risk and, perhaps more importantly, will require
the creation of governance structures that encourage a much more proactive risk management
culture across all organizations. PRMIA has much to contribute in these, and other, areas.
The above changes require the wise blending of quantitative and qualitative expertise. The
lessons learned highlight the need for an increasingly strong voice of practicing risk
management professionals across the globe. PRMIA is very well positioned to take an
increasingly important leadership role within this dynamic, fast‐changing landscape. I believe
PRMIA – as a global organization – can add an increasingly strong, proactive and unique voice
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2. to the evolving dialogue. As we continue to contribute to the risk community through higher‐
standards of financial learning and experience increased growth, we must focus on the
following critical areas:
1. Designation Distinction: The PRM designation is distinctive and unique. Those that achieve the
PRM certification have demonstrated not merely a solid foundation of practical risk knowledge,
but are professionals that work in the trenches. As a pragmatic risk practitioner, he or she
actively contributes to the risk profession through his or her leadership at the local level, usually
through their PRMIA chapter. Our local risk leaders are able to connect our members to an
increasingly creative, networked and global organization. We achieve distinction by placing a
focus on our PRM curriculum, our ability to access our valuable “knowledge assets” across the
association in an efficient and helpful manner, and a pro‐active involvement in local and global
risk issues. Our local chapters provide brand recognition by creating regularly scheduled
forums, training and other opportunities to not only discuss ‐ but demonstrate ‐ the highest
standards of risk management understanding. Our professional members, as well as those that
are seeking a network of risk leaders, can find a “home” in our local PRMIA chapters; a home
that is highly focused on strategic and institutional issues. A PRM is able to function in
corporate, institutional and complex enterprise risk architectures and, most important, can feel
confident that PRMIA‐Global is there in support of their efforts, professional education and
career aspirations. Each PRMIA chapter creates valuable interactions with key thinkers on
financial policy, economics, markets and changing regulatory requirements. We do this through
a combination of training, relationship building, active community engagement, and pro‐active
thought‐leadership. Our Regional Directors are dedicated and have the business‐level support
of PRMIA‐Global such that local chapters can learn how to increase members, budget and its
internal and external connectivity to risk experts.
2. Affinity Relationships: Our RD’s will be increasingly focused on creating affinity relationships/
partnerships with local universities, publishing organizations, market supervisors, community
thought‐leaders, and related think‐tanks and research organizations. We aim to grow our
connection points, at local levels, by at least three per annum. Our RD’s are able to articulate
our global mission and have access to PRMIA’s leadership on a routine basis. As our affinity
relationships grow, we strive to integrate these relationships into our global chapter base and
provide value‐added opportunities for our affinity partners.
3. Revenue growth: Through our use of ever improving technology, we are able to harness our
organization’s assets and deliver value‐added content on a “just‐in‐time” basis. The ability to
host local events is increased through the wise selection of sponsors; sponsors that support our
organization’s mission, which is to be a network of risk professionals that have global influence,
local impact, and an unwavering commitment to a higher level of risk knowledge and
understanding than any other association of risk professionals. Due to the significant value‐add
PRMIA provides, we offer members varying levels of service and support. Members will, over
time, be fee‐paying sustaining members. This sustaining fee is used to support PRMIA’s global
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3. priorities. Regional chapters learn how to develop the local risk association in ways that foster
local revenue growth while maintaining independence and objectivity. Hosted events may be
fee‐based, depending on the nature and scope of the event. Regional and Co‐Regional Directors
have the ultimate voice in event pricing decisions; however, all events are coordinated with
PRMIA and we all look for opportunities to grow our warehouse of “pay‐for‐play” assets and
services. Such revenue growth will be consistent with our non‐profit status. Our overall aim for
raising revenue always has in mind one thing: giving back value to the risk profession and
enabling advanced learning to our members. We think globally. We act locally.
4. Sponsorship: PRMIA has a long‐standing policy of avoiding revenue sponsors. This should
continue. In order to remain agnostic to any given vendor, risk solution provider or other risk‐
partner, it is critical that the global organization remain at arms‐length from corporate entities
that desire access to our deep pool of risk professionals, or that aim to associate their corporate
brand with the PRMIA value proposition. However, we are able to use our “brand” to increase
our local and global budgets by entering into sponsorship agreements. Such Sponsorship
Agreements may provide:
o Access to meeting space and facilities
o Food and other items for local events
o Access to speakers and other risk professionals
o Administrative and logistical support
o Other possible benefits
Although PRMIA will not promote specific products or services, PRMIA Sponsorship Agreements
can be used to enhance the local‐chapter and global budget(s). This is achieved through active
business development by our Regional Directors and Steering Committees. The form and
substance of these arrangements are important to communicate with PRMIA‐Global and, prior
to being put into operation, must receive approval from the PRMIA Board. More information on
Sponsorship Agreements are made available, and discussed, on a routine basis at periodic RD
meetings and PRMIA Board meetings.
Other areas of focus include:
 To be a leader of opinion and a proponent for the risk management profession including
influencing ideas and being proactive in commenting on policy issues
 Drive the integration of practice and theory by certifying the credentials of professional risk
managers and providing risk‐services, where warranted, to internal risk training initiatives ‐ on a
bespoke basis – to various enterprises
 Improving our ability to connect practitioners, researchers, students and others interested in the
field of risk management
 Work in collaboration with other professional associations in the furtherance of PRMIA‐Global’s
mission
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4.  Increase volume of members and active local and global participation rates
 Increase the governance, policies and practices of all chapters
 Provide training and advice to regional chapters in the attainment of PRMIA’s global mission and
its overall value‐proposition
Additional Endorsements:
“It is with great pleasure to endorse Tom Day for the PRMIA Board. I know Tom from his vast work with
PRMIA, the Federal Reserve Bank system, and Sungard. Tom is a personable, generous spirited,
enthusiastic and tireless advocate of risk management and responsible stewardship. He sets the
standard for commitment to excellence, involvement in outcomes, and the value of shared experience.
His skills in both qualitative and quantitative disciplines provide a strong foundation for his further
tireless investigation of alternative approaches to the challenges we face in an ever more complex and
politicized financial environment. He networks across disciplines, maintains an open mind, and brings a
sense of humor and a lightness coupled with intense thought leadership. I can’t think of a better choice
for a leadership role as PRMIA takes its next steps to influence change and provide thought leadership
in the investment and financial arena.”
- Leslee L. Martin, CFA, PRM, MBA, Manager, Monetary Reports, Federal Reserve
“I have known Tom Day for over a year now as a very active PRMIA member organizing events in
Washington DC on the most relevant topics. I have been impressed with Tom's energy in creating
these events. As a fellow PRMIA steering committee chapter member in San Francisco / Bay Area, I
have always found Tom very proactive in reaching out to me to share notes and thoughts on many of
these events. I think Tom's vision, energy and organizing capacity will be of great use in our effort to
build up PRMIA to have wider membership that has access to the best thought leadership in the risk
management space.”
‐ Laxmi Ramanath, CEO of La Meer Inc., a Risk Management Solutions Company based in Sunnyvale
California
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