CA vs FRM

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. To give you a clear overview, we have created this blog post- CA vs. FRM, enabling you to understand the differences well.

The article is articulated in this order: –

CA vs. FRM Infographics

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

CA vs FRM – Comparative Table

What is a Chartered Accountant (CA)?

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 accountantAccountantAn accountant is a finance professional responsible for recording business transactions on behalf of a firm, reporting the firm’s performance and issuing financial statements. Thus, an accountant plays an important role whether it is a small domestic entity or a large multinational company.read more, budget analystBudget AnalystBudget Analyst is a professional data-oriented person. He/she organizes and allocates various financial resources (Income from business/profession, interest income from bank deposits, profits from trading in stocks or shares) by monitoring each spending on an estimation basis and then produces probable surplus/deficit from the said calculations.read more, or financial auditor, among others.

  • Common Proficiency Test (CPT)

  • Integrated Professional Competence Course (IPCC)

  • CA Final

  • Part I

  • Part II

  • General Economics

  • Fundamentals of Accounting

  • Direct Taxes

  • Mercantile Laws

  • Cost Accounting & Financial Management

  • Auditing & Assurance

  • Management Accounting & Financial Analysis

  • Organisation & Management

  • Fundamentals of Electronic Data Processing

  • Quantitative Aptitude

  • Quantitative Analysis

  • Valuation

  • Risk Models

  • Financial Markets & Products

  • Credit Risk, Operational Risk & Market Risk

  • Treasury & Liquidity Risk Management

  • Investment Management

  • Internal Auditor

  • Tax Auditor

  • Strategic Accountant

  • Management Accountant

  • Public Accountant

  • Government Accountant

  • Financial Advisor

  • Risk Manager

  • Investment Banker

  • Financial Risk Consultant

  • Risk Management Analyst

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 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 sectorServices SectorThe service sector or tertiary sector refers to one of the portions forming the three-sector model of the economic sector. The businesses in the service industry produce intangible goods in the form of service as output delivering to other businesses or consumers.read more.

CA vs. FRM Exam Requirements:

For CA, You Need:

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 IPCCIPCCAccording to the guidelines established by the Institute (ICAI), there are several options for taking the IPCC Exam. There are seven subjects in all, separated into two groups of four and three subjects. You’ll need 200 and 150 marks to pass a group, respectively.read more (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 You Need:

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.

Why Pursue CA?

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 auditingFinancial AuditingFinancial audit is an independent examination of the financial statements of an entity irrespective of its size. It is done by auditors or audit firms who provide an opinion regarding the accurate and fair view of the facts & figures mentioned in the financial statements.read more, 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.

Why Pursue FRM?

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.

Conclusion

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. 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 accountingCareer Roles In AccountingMaking a career in accounting can fetch you multiple growth opportunities in the various disciplines of the accounting profession. You can become a finance and accounts manager, statutory auditor, tax manager/expert and certified public accountant (CPA).read more and financial auditing, among other things, and can even start their private practice on completing CA.

FRM is more of a choice for those with professional experience in risk management, looking to enhance their skill sets and seek better opportunities. That 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.

Guide to CA vs FRM. We have discussed its job opportunities, registration fees, study hours, subjects, etc. differences between CA and FRM (infographics) and a comparative table. You can learn more from the following articles: –

  • Portfolio Management Career PathHow to Measure Financial Risk?Guide to CA ExamFRM vs. CAIA