One of the most evident and common question in the minds of any finance executive looking for certifications is: Whether to go in for the CFA® or the FRM certification or both.

What one must realize is that before deciding which program to go in for, it is essential to know where the individual interests lie and the scope for both. This is primarily because the FRM certification is more focused to risk management whereas the CFA® program is more generic and comprehensive in nature.

This article has been written to give the candidate a clear understanding of both the programs and the opportunities that are available to the candidate after successful completion of both the programs.

CFA® PROGRAM

The CFA® or the Chartered Financial Analyst program is conducted by the CFA® Institute. Lately, since the importance of the program has been steeply rising, it is often considered to be equivalent to an MBA degree in Finance. It has become one of the most essential certification and the most popular one amongst any executive in the finance, banking or the investment sectors.

Career options available for a CFA® Charter holder

An executive that has a CFA® charter can apply for the following positions in organizations around the world;

• Role of Portfolio Managers
• Role of Fund Managers
• Role of Risk Management Executives
• Role of Financial Advisers
• Role of Bankers
• Role of Finance consultants
• Role of Accountants
• Role of Auditors
• Role of Hedge Fund managers, among others. 

Eligibility 

• The candidate should have a bachelor’s degree or an equivalent degree or should be in the final year of their bachelor’s program to be eligible to take the exam
• The candidate should possess four years of relevant work experience (not particularly in an investment-related role) to be eligible to hold a charter 

FRM PROGRAM 

As mentioned above the FRM certification is more relevant for candidates who are currently managing any risk-related profile in any financial institution or are interested to make a career in the same.

With the increasing competition and the dynamic changes underwent in the financial sectors globally, it becomes an impetus for financial institutions to find professionals and executives who can relate well to managing financial risk, monetary resources and investments effectively and efficiently. All these factors, have resulted in recruiters being more inclined towards the FRM certified candidates to handle the afore mentioned roles.

Career options available for an FRM Charter Holder 

• Role of Chief Risk Officers
• Role of Senior Risk Analysts
• Role of Investment Risk Managers
• Directors, among others

Eligibility

• There are no such prerequisites when it comes to academic qualifications to become eligible to take the FRM exam
• A minimum of two years of relevant professional experience in a risk-related profile is required to become eligible to hold the charter

ANALYSIS OF CFA® & FRM CERTIFICATIONS