FRM vs MBA – Which is the Right Decision? Life is all about making the right choices, it does not matter how you make the choice. I think we definitely miss out on the small but very important things and that is the journey through which we arrived at the decision to choose the correct thing.
Finance is a very lucrative career and yet very boring to those who are not interested. So if you are confused between whether to take FRM examination or complete your MBA or both, do have a look at this quick guide to help you phase out the dilemma.
In this article on FRM vs MBA, we discuss the following
- FRM vs MBA Infographics
- What is Financial Risk Manager (FRM)?
- What is Masters in Business Administration (MBA)?
- FRM vs MBA Exam Requirements
- Why pursue FRM?
- Why pursue MBA?
FRM vs MBA Infographics
Reading time : 90 seconds
Lets understand the difference between these two streams with the help of this FRM vs MBA Infographics.
FRM vs MBA Summary
|Certification Organised By||Global Association of Risk Professionals||Universities Recognized by the Government|
|Levels||Part I and Part II||Two year degree course with four semesters|
|Mode of Examination||Each of FRM exams is of 4 hour duration. Both of the exams can be taken within a single day with Part I carried out in the morning and Part II carried out in the second half of the day.||As decided by the University|
|Exam Window||In 2017, the FRM Exam will be offered on May 20, 2017 and November 18, 2017.||Different institutes have different exam windows for MBA. No specific information is available.|
|Subjects||Part I Exam Topics: |
1. Quantitative Analysis
2. Financial Markets and Products
3. Foundations of Risk Management
4. Valuation and Risk Models
Part II Exam Topics:
5. Market Risk Measurement and Management
6. Credit Risk Measurement and Management
7. Operational and Integrated Risk Management
8. Risk Management and Investment Management
9. Current Issues in Financial Markets
3. Operations and marketing along with a specialization.
|Pass Percentage||November 2016 Exams Pass Rates: FRM Part I: 44.8% | FRM Part II: 54.3%||MBA Exam pass percentage is 50%|
|Fees||Exam Enrollment Early Standard Late|
FRM Exam Part I $400 $350 $475 $650
FRM Exam Part II N/A $350 $475 $650
|MBA Fee differs from institute to institute|
|Job Oppurtunities||FRM Certified professionals can be best fits for the roles of: |
Financial Risk Consultant
Risk Assessments Manager
Risk Management Analyst
Head of Treasury Department
|MBA Proffesionals can be best fit for the
3. Operations and Sales heads
What is FRM or Financial Risk Manager?
The Financial Risk Manager is a global certified program based in the US and offered by the Global Association of Risk Professionals. The course consists of two parts and prepares you for everything from risk management and measurement to quantitative analysis techniques, as well as financial markets and products and evaluation models.
The FRM course requires the candidate to have two years of full time working experience in the finance arena which can be in the form of risk management, trading, academia, equity research, portfolio management, auditing, economics, risk management or risk consulting.
What is MBA or Master of Business Administration?
A master’s degree in business administration prepares you for the field of business and is typically for people who want to make a career in marketing and general management. The two year’s course offered in business schools prepares you for management analysis and strategy while providing a thorough knowledge on accounting, finance, marketing and human resources.
The MBA course is available in full time, part time and distance learning processes, with each having a significance of its own in the industry.
FRM vs MBA Requirements
The cost often plays a huge deciding factor for many and is one of the biggest disadvantages of an MBA program. While MBA is a two year rigorous study filled with internships and exams, passing the FRM certified course is more difficult as it requires a great amount of dedication and hard work from the entrant. The success rate for FRM courses is 45% to 52% and this can give you a fair idea about its difficulty. The FRM is a multiple choice questions exam.
The MBA program is set in a semester mode and the two year course sees a candidate pass out four semesters. The success rate of a candidate in this program depends on his GPA, test score, strong work ethics and internships, great recommendations by professors as well as industry professionals with whom he has rubbed his shoulders and his leadership qualities and abilities to come out with an edge amongst his peers. Thus career prospects vary and depend on an individual’s talent and hard work.
Why pursue FRM?
FRM today is considered as an alternative option to CFA. While CFA and MBA remains the traditional choices to boost career prospects, FRM as observed by industry experts is poised for growth considering that the market is less saturated with FRMs than CFAs at the moment. Though FRM can boost your earning power, to believe that it would happen overnight and create you a millionaire is a wrong perception. The HR managers in the banks are still to be made aware of FRM as a certification which is on par with a CFA (though less holistic and more narrow) and therefore it is not a must have while a candidate is being recruited.
FRM certified course is best suited for those individuals in the finance industries who play a senior role in management firms, government agencies, Investment banking firms, hedge funds, asset firms, commercial banks, central banks, credit agencies, corporations, technology and asset vendors, consulting firm and so on and want to jump up in their positions or are looking for a change in career domain.
#Tip: Dedication and Patience are a must quality for a candidate to clear FRM exams.
Additional certification after a traditional degree is a pre-requisite considering the booming number of talented professionals in the industry. Thus FRM is for professionals who are looking to excel and make progress in their portfolio or who desire a shift in their career with a more diversified, analytical and challenging role in their career. The syllabus of these certified courses have a much broader global perspective and has a current relevance in today’s financial market scenario.
Why pursue MBA?
MBA provides good business skill and is appropriate for you if you want to climb the corporate ladder. With a degree in IT, Finance or Marketing it is worth the pain to study MBA as it will prepare you to excel in the managerial roles. However, MBA is a rigorous study course and is extremely wide in its syllabus touching upon the various topics perhaps not in great detail but nonetheless preparing you in general for each of the diversification.
# Tip: It is however my observation that an MBA is a must as it prepares you for business entirely while a certification course is a supplementary to an MBA enhancing your abilities, analytical skills and ethical grounding.
Other comparisons that you may fine useful –
Prep Guides and Tools for FRM Exam
- Wiley Study Guide for 2016 Part I FRM Exam: Complete Set
- Financial Risk Manager Handbook, + Test Bank: FRM Part I / Part II
Monetary issues do guide our choices and often lack of interest and talent is over ridden in making a career choice. However, the most repentant is the one who makes a career choice to go with the flow without adequately researching the various industries and the courses. Choose FRM if you are interested and passionate about Finance and Risk Management. Choose MBA, if you are interested in management and business aspects of a company.