CIPM vs FRM – Which to Choose For a Good Professional Future

CIPM vs FRM – Which to Choose For a Good Professional Future? – In this comparative we discuss the two certifications – CIPM and FRM.

CIPM exam (offered by CFA Institute) mainly comprises of investment performance measurement and its attributes. On the other side is Financial Risk Manager (FRM) is offered by GARP, is all about Risk management.

This article will give you information as per below –

  1. CIPM vs FRM Infographics
  2. What is CIPM?
  3. What is FRM?
  4. CIPM vs FRM Exam Requirements
  5. Why pursue CIPM?
  6. Why pursue FRM?

CIPM vs FRM Infographics

Reading time : 90 seconds

Lets understand the difference between these two streams with the help of this CIPM vs FRM  Infographics.

CIPM vs FRM infographics

Certificate in Investment Performance Measurement (CIPM)

CIPM is an international course which is available for professional candidates and also people who are starting with their careers. CIPM is offered by CFA Institute and it mainly comprises of investment performance measurement and its attributes which means , it is a  theory which studies the models to explain those processes.

In brief some global investment firms are subjected to showing a great deal of variety in terms of regulations, international laws, market customs that state on how investment performance should be measured and advertised.

GIPS which is the global investments standards are a set of rules which are laid down by the management industries to monitor the continuous growth in the worldwide patchwork of regulation covering investment return calculations and advertising and also since GIPS is professional body of knowledge it also tests the competency of the people or organization’s associated with the field and this is how the CFA formed the CIPM association.

Since this a professional course for people from the financial field one must adhere to professional ethics and conduct that have been laid down by the CFA and also proves one’s competence in the respective field.

Financial Risk management (FRM)

Financial Risk Manager (FRM) is offered by Global Association of Risk Professionals (GARP), an international organization engaged in promotion of industry standards in the field of risk management. FRM is focused on financial risk management which makes it a highly specialized certification program. This make it suited for individuals planning to gain expertise in financial risk management instead of adopting a generalized approach. An increasing number of global organizations are looking for accredited risk professionals to be able to add that competitive edge to survive in the modern industry.


CIPM vs FRM – Exam Requirements

CIPM Exam Requirements

If you are thinking about appearing for a professional course there are certain requirements every course has. Do not forget that these are professional financial examination and to know the requirements just peep into the notes below.

  1. Experience of more than two years in calculations, showing investment results, analyses, giving consultation services, evaluating different investments, legal and regulatory services, directly supporting investment either technically or though accounting, standard verification and compliance experience of GIPS, teaching investments or even monitoring people dealing in investments either directly or indirectly.
  2. Otherwise you need a more than 4 years of experience in the industry of investments that usually involves applying and evaluating financials of people, working on economical and statistical data of clients, manages marketing for investment products and services, monitoring the investment firms to make sure that they comply with the regulatory standards, evaluating and recommending investment managers.


FRM Exam Requirements

FRM has very clear 3 requirements we will explain in detail

  1. Clearing the FRM examination Part I
  2. You will also have to clear the Part II within 4 years of clearing the part I
  3. You will have to have a complete 2 years of full time experience in financial risks.

Besides the above 3 criteria’s the candidate has to submit a letter that describes his professional role in managing financial risk in about 4 to 5 sentences. This application needs to cover ‘My Programs’ within your account. This work experience that is submitted need not be more than 10 years from before appearing the FRM examination part II. Relevant work experience is counted as research analyst in financial risk management, financial risk academic teaching and practitioners.

Experiences that will not be counted are teaching students, part time jobs or internships or any other jobs that are pursued during school days. The candidate has 5 years of submitting his work experience after he has cleared his FRM part II. In case he does not or in case he fails to do so he will have to reappear his examinations of FRM part I and II along with paying the fees again. He cannot use the FRM certification unless he has been certified by the association.

Why pursue CIPM?

CIPM certifications helps you in highly specialized investment industry and also gives you an upper hand in investment decision-making processes, firm’s asset-gathering a position as an analyst at an accounting firm with a GIPS verification practice, or an analyst’s position at an investment consulting firm that conducts manager searches and monitors institutional clients’ investment results. As we already know that CIPM is backed by the prestigious CFA institution so there are the best minds in the investment industry who are involved who are dedicated, ethical, in depth knowledge of investment performance, and know the GIPS “cold”. Salary is the most important basis in any career so according to survey in 2016 a candidate can get paid anywhere between $100 to $150K in the United States of America.

Why pursue FRM?

Becoming a FRM has its own perks and Advantages. It is one of the most renowned qualifications and it will also make the individual an all-rounder in domains that involves risk, like operational, market, credit or investments. Also when you are an FRM certified individual it gives you an edge over your peers and widens horizons and also will be like an extra feather in your cap.

Benefits of FRM certification are Enhance your reputation, Develop your knowledge and expertise, Stand out to employers and set yourself apart, Demonstrate your leadership at work, Increase your opportunities across the globe.

Salary is the basis of everything so if you are in the States your salary can range anywhere between 250000$ to 300000$ per year and in India your salary per year can be anywhere between 9-12 Lakhs per annum and additional perks like paid vacation , bonuses per year , pensions life and medical insurances

A few employers for FRM Individuals are UBS, Deutsche Bank and HSBC, as well as auditing firms Ernst & Young (EY), PricewaterhouseCoopers (PwC) and KPMG etc.

Career prospects for a FRM executive is Risk Management Analytics Consultant & personal banking, Senior Operational Risk Manager, Corporate Risk COO& Risk Officer for Global Asset Liability Management, Risk Manager, Prudential Risk to name a few. So FRM certified individuals are in great demand and also it niche market and very few people are actually involved with the rite certifications and if you have a FRM certification you have an edge over you contemporaries.

Other useful comparisons


If you are interested in studying the performance of investment and managing the same for public then this is just what you would like to do a certification backed by the CFA is an absolute yes when it come to making a career in finance. This certification helps you gain a good start package along with great recognition and also grow well in your professional aspects. This course is not all that difficult to start with giving you a confirmation if you work a little hard chances are you might crack the examination well.

Risk management is such a term for the finance people. All the investments revolve around this aspect for a risk manager is the one who balances to minimize risk. And if you think you can this big responsibility of your clients money then you do not have a better job than this. If you want to reach to the high designations of financial risk management then this course will definitely help you reach your desired designation.

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