CA vs FRM
Both of these credentials have something in common. They both are quite well known for the fields they cater too. While CA specifically focusses on accounting and taxation, FRM is catering to concepts of risk management. They both have distinct identities, yet candidates get confused which they should choose. To give you a simple overview we have created this post-CA vs FRM which would enable you to understand the differences well.
The article is articulated in this order:
- CA vs FRM Infographics
- What is a Chartered Accountant (CA)?
- What is the Financial Risk Manager (FRM)?
- CA vs FRM Exam Requirements
- Why pursue CA?
- Why pursue the FRM?
CA vs FRM Infographics
Reading time: 90 seconds
Let’s understand the difference between these two streams with the help of this CA vs FRM Infographics.
CA vs FRM Summary
| Section | CA | FRM |
|---|---|---|
| Certification Organized By | CA is offered by ICAI | FRM is offered by GARP |
| Number of Levels | CA: It is a 3-level exam including. Level 1 CPT - 2 years Level 2 IPCC - 1 year Level 3 CA Finals - 1 year | First is Competency Professional Test (CPT). Once you clear CPT, you are eligible to sit for Integrated Professional Competence (IPC). If you clear PCE, you will be able to give the Final exam. |
| Mode/duration of examination | Each exam at each of the levels is of 3 hour duration. It takes at least 4 years to complete CA including all of the three exam levels. | 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. |
| Exam Window | CA and IPCC Final Exams will be start from 2nd May 2017 to 16th May 2017. | FRM :May 20, 2017 November 18, 2017 |
| Subjects | CA: CPT topics: Session I: Section A: Fundamentals of Accounting Section B: Mercantile Laws Session II: Section C: General Economics Section D: Quantitative Aptitude IPCC Topics: Group I: Accounting Law Ethics and Communication Cost Accounting Financial Management Taxation: Part I: Income Tax Part II: Service Tax and VAT Group II: Advanced Accounting Auditing & Assurance Information Technology & Strategic Management: Section A: Information Technology Section B: Strategic Management CA Finals Topics: Group I: Financial Reporting Strategic Financial Management Advanced auditing & Professional Ethics Corporate Laws & Secretarial Practice Group II: Advanced Management Accounting Information Systems Control Direct Taxes Indirect Taxes | FRM: 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 |
| Pass Percentage | Unlike any other professional courses, CA is very tough nut to crack. Only 5.75% of students could clear the exam in 2015 The Pass Percentage of Nov 2016 Exam is 32.53% (Both Groups) | November 2016 Exams Pass Rates: FRM Part I: 44.8% | FRM Part II: 54.3% |
| Fees | US $ 900 - $1000 (registration fee and exam fee for CPT, IPCC, CA Finals, Articleship, 100 hours of ITT and 35 hours of orientation programme taken together) | New Candidate - FRM Exam Part I Early:- December 1, 2016 - January 31, 2017. $750. Enrollment fee $400. Exam fee $350 Standard:- February 1, 2017 - February 28, 2017. $875. Enrollment fee $400. Exam fee $475 Late:- March 1, 2017 - April 15, 2017. $1050. Enrollment fee $400. Exam fee $650 Returning Candidate - Part I/Part II FRM Exam Part I- Enrollment $400, Early $350, Standard $475, Late $650 FRM Exam Part II- Enrollment N/A, Early$350, Standard$ 475, Late $650 |
| Job Opportunities/Job Titles | CA Job Roles:- Public Accountant Management Accountant Internal Auditor Other roles related to Financial Analysis, Strategic Accounts, Financial Advisory and Taxation Audits | FRM Certified professionals can be best fits for the roles of: Financial Risk Consultant Risk Assessments Manager Risk Management Analyst Investment Banker Head of Treasury Department |
What is a Chartered Accountant (CA)?
CA is a highly valued designation awarded by the Institute of Chartered Accountants of India (ICAI) which represents a unique professional role in itself in the field of accounting, taxation, and auditing. It is a globally recognized credential that offers a professional the rare choice of starting his or her own private practice in the field of chartered accountancy or work with a private or public sector undertaking. After completing CA, a professional can work in the roles of financial accountant, budget analyst or financial auditor among others.
What is the Financial Risk Manager (FRM)?
FRM is a globally recognized credential offered by the Global Association of Risk Professionals (GARP) for risk management professionals. This credential is designed to impart a detailed knowledge of assessing as well as managing different types of market-based as well as non-market financial risks. This credential also covers general best practices in the field of financial risk management and can be useful in earning expert-level skills in this specialized area. This certification offers a complete overview of risk management practices within the financial services sector.
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CA vs FRM Exam Requirements:
For CA You Need:
Candidates who have cleared Class 10 examination and students who have appeared for the Senior Secondary Examination (recognized by the Central Government of India) are eligible to appear for Common Proficiency Test (CPT) as the foundation level exam for CA.
To sit for IPCE (Integrated Professional Competence Exam), a student should have cleared the CPT and 10+2 exam (recognized by the Central Government of India). Candidates with a minimum of 55% aggregate marks in Graduation/Post Graduation in Commerce stream or 60% aggregate for those in other than Commerce stream can directly register for the IPCE exam. Candidates who have passed the intermediate level exam conducted by ICWAI or ICSI are also exempt from the CPT exam and can directly register for IPCE. To appear for IPCE, a candidate must also have completed 100 hours of Information technology training (ITT) and registered for IPCC (Integrated Professional Competence Course) at least 9 months before the date of examination.
To sit for CA Finals, a candidate must have cleared both groups of IPCE along with 2.5 years of Articleship.
For FRM You Need:
There are no educational requirements but the candidate should have at least 2 years of full-time work experience either related to risk management including portfolio management, risk consulting, risk technology, or other related areas.
Why Pursue CA?
Despite it being a tough designation to earn, it is undoubtedly among the most highly acknowledged global industry credentials in finance. What sets apart being a CA is that it opens up the whole wide world of possibilities in finance for a professional, instead of keeping them restricted to the field of accounting or auditing. On completing CA, a professional can work in the capacity of an independent professional on par with independently functioning professionals including doctors or engineers. One can become associated with a highly reputed organization in a variety of roles associated with financial auditing, taxation, corporate finance, management consultancy, and tax compliance among other things. A CA is invested with the power to legally represent the company or client he is working for in matters of legal and financial disputes.
Why Pursue FRM?
FRM is a highly valued risk management credential that is best suited for professionals with a good amount of experience in the field of risk management. It deals specifically with the aspect of risk management as opposed to other areas of general interest in finance and accountancy. Those with an FRM are best fit for roles like Risk Assessments Manager and Head of Treasury Department, requiring knowledge of risk assessment and risk management in finance.
Conclusion
CA is meant for those with a bent of mind for accounting (including but not limited to number crunching) along with a keen interest in auditing, tax management, strategic approach to financial matters. It takes at least 4 years to complete the Chartered Accountancy (CA) course and is far more time consuming as compared to FRM, although much wider in scope as well. One can choose from an entire spectrum of career roles in accounting and financial auditing among other things and even start his or her own private practice on completing CA.
FRM is more of a natural choice for those with professional experience in risk management looking to enhance their skill sets and seek better opportunities. This credential can be earned by clearing FRM Part I & Part II exams and demonstrate two years of relevant work experience. Though highly valued, its relevance is limited to the field of financial risk management.
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