CFA Vs FRM had always been a great confusion among the aspirants interested in breaking into finance domain. CFA the chartered financial analyst exam is the lucrative title that we come across in wall street jobs often has been confused with Financial Risk Manager title that deals with different risk aspects of financial products like market risk, credit risk, operational risk etc. The title of the job role as well as pay rate can vary depending on the stream chosen by aspirants
Which is good for a beginner in finance?
The answer ultimately depends on the position you are looking for in finance particularly investment banking domain
FRM – Financial Risk Manger is a certification with risk management as focus.
Though there is a basic coverage of quantitative methods four major risk disciplines (credit risk, market risk, operational risk, investment risk ) are of prime focus in FRM
CFA – Chartered Financial Analyst is a reputed Professional credential from CFA Institute. It is offered in 3 levels and provides a 360 coverage of finance including ethics, valuation methods to name a few
So if you want to break into investment banking job roles like equity analyst it is preferable to go for CFA.
Risk specific jobs like risk analyst, enterprise risk manager etc can be easily cracked using FRM credential
Note : This article is the personal opinion of the blog author