CA Vs FRM - What's the Career Scope?

CA and FRM have something in common. They both are quite well-known for the fields they cater to. While CA specifically focuses on accounting and taxation, FRM caters to risk management concepts. They both have distinct identities, yet candidates may get confused while choosing.

The course of CA is offered by different institutions in different countries, empowering the candidate to work in taxation, analysis, consulting or corporate finance but FRM is only offered by the Global Association Of Risk Professionals (GARP) in the US and empowers the candidate to work in the risk analysis and management field. They are not mutually exclusive qualifications, and the candidate can pursue both depending on interest and skill.

Both CA and FRM are two very highly regarded but different professional qualifications. CA is intended for those with a bent of mind toward accounting (including but not limited to number crunching) along with a keen interest in auditing, tax management, and a strategic approach to financial matters and FRM is more of a choice for those with professional experience in risk management, looking to enhance their skill sets and seek better opportunities.

CA is a highly valued designation awarded by the Institute of Chartered Accountants of India (ICAI), representing a unique professional role in accounting, taxation, and auditing. It is a globally recognized credential that offers a professional the rare choice to start their private practice in chartered accountancy or work with a private or public sector undertaking. After completing CA, a professional can work as a financial accountant, budget analyst, or financial auditor, among others.

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 and managing different types of market-based and non-market financial risks. In addition, it also covers general best practices in financial risk management that can be useful in earning advanced-level skills in this specialized area. This certification offers a complete overview of risk management practices within the financial services sector.

However, it is important to understand that the two qualifications are not mutually exclusive. Any individual can pursue both of them if they have interest and the requirement to do so. It totally depends on career aspiration, interest, knowledge and skill of the individual.

Let us understand the difference between these two streams with the help of CA vs. FRM infographics.

It takes at least four years to complete the Chartered Accountancy (CA) course and is far more time-consuming than FRM, although much wider in scope. One can choose from an entire spectrum of career roles in accounting and financial auditing, among other things, and can even start their private practice on completing CA.

However, one can earn the credential by clearing FRM Part I & Part II exams and demonstrating two years of relevant work experience. Though highly valued, its relevance is limited to the field of financial risk management.

This comparative table given below helps us to understand and remember the points differentiating both of them. Let us go through the table thoroughly.

For CA:

Candidates who have cleared the class tenth examination and students who have appeared for the Senior Secondary Examination (recognized by the Central Government of India) are eligible for the Common Proficiency Test (CPT) as the foundation level exam CA.

To appear for IPCE (Integrated Professional Competence Exam), a student must have cleared the CPT and 10+2 exam (recognized by the Central Government of India). Candidates with a minimum of 55% aggregate mark in the Graduation/Post Graduation in Commerce stream or 60% aggregate for those other than the commerce stream can directly register for the IPCE exam. Candidates who have passed the intermediate level exam conducted by ICWAI or ICSI are exempt from the CPT exam and can directly register for IPCE. Also, To appear for IPCE, a candidate must have completed 100 hours of Information technology training (ITT) and registered for IPCC (Integrated Professional Competence Course) at least nine months before the examination date.

To sit for CA Finals, a candidate must have cleared both groups of IPCE along with 2.5 years of Articleship.

For FRM:

There are no educational requirements, but the candidate should have at least two years of full-time work experience in risk management, including portfolio management, risk consulting, risk technology, or other related areas.

Despite 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 enormous possibilities in finance for a professional, instead of restricting to the field of accounting or auditing. On completion of CA, a person may work independently on par with independently functioning professionals, including doctors or engineers. One can also associate with a highly reputed organization in various roles related to financial auditing, taxation, corporate finance, management consultancy, and tax compliance, among others. In addition, a CA is invested to legally represent the company or client working for illegal and financial disputes.

FRM is a highly valued risk management credential best suited for professionals with a good amount of experience in risk management. It deals specifically with risk management instead of other areas of general interest in finance and accountancy. Those who opt for 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.

Guide to what is CA Vs FRM. We explain it with infographics, comparative table, the exam requirements for both and why pursue them. You can learn more from the following articles: –

• Portfolio Management Career Path
• How to Measure Financial Risk?
• Guide to CA Exam
• FRM vs. CAIA