Does anyone know what the difference is between a CFA and a FRM? Does anyone know?

1. CFA is a Certified Financial Analyst and FRM is a Financial Risk Manager.

2. The purpose of the certificate is different: CFA focuses on the company's front-end business, investment analysis, and asset allocation; FRM, on the other hand, focuses on the company's middle and back office business, asset allocation, measurement risk and monitoring risk.

3. Different goals: CFA deals with people, more active, aggressive and adventurous; The quiet and stable living environment (bank) of RM is relatively technical.

4. CFA financial asset pricing, focusing on financial knowledge, analysis of a certain asset of the company, understanding the company's business status, and analysis of specific bonds; FRM focuses on the analysis of operational risk, credit risk, market risk, and portfolio risk.

Difference between CFA and FRM exam content: Get free preparation materials for the 2022 FRM (trial course + past past questions + exam syllabus, etc.).

Difference between the career direction of CFA and FRM holders:

Career path at FRM.

FRM, Financial Risk Manager, as the name suggests, is more suitable for the development of risk control positions in financial institutions. The main suitable career development directions are: asset management positions, ** managers, investment banking managers, financial traders, risk control managers or directors, senior audit managers, credit risk analysts, etc.

Career pathway in CFA.

As the first certificate in the field of finance, CFA is more difficult than FRM and much more recognized than FRM, which determines that its employment prospects are broader. The main suitable career development directions are: ** manager, ** analyst, CFO, investment consultant, investment banking manager, financial manager, risk manager, investor relations manager, trader, etc.

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CFA is a Chartered Financial Analyst with a bias towards investment.

FRM is a Certified Risk Manager with a bias towards risk control.

FRM is a certification certificate for risk management, and CFA is a more authoritative certification in the financial industry.

The main differences are:

1. FRM is now divided into part1 and part2 exams, which can be taken together at one time, that is, you can complete the exam in half a year at the earliest; CFA is divided into three levels, Level 1 is tested twice a year, Level 2 and Level 3 are taken once a year, so you need to complete the test in 2 and a half years at the earliest.

2. FRM focuses more on risk management, and there are many very deep risk management models in it, which are still very biased.

CFA Level 2 Derivatives contains more pricing models, and the rest covers a wide range of financial statements, ** theory, valuation pricing (including secondary market and PE VC), corporate finance, asset management theory, etc.3, FRM certification in the United States is not as good as CFA, and GARP is not particularly famous.

4. CFA will be forced to purchase textbooks after registration, and FRM does not specify textbooks, but only specifies some books as bibliographies; However, when I take the exam, I generally buy notes, and the notes of FRM are poorly written, and many of the contents are not in-depth or unclear.

5. For master's students who are more mathematically oriented, if you are not doing risk management, then take the CFA exam first to make up for your financial knowledge. There is not much to learn to do quant in China, it is good to have a solid foundation in mathematics and science, and it is good to have strong programming, after all, there are no derivatives that need pricing, and it is basically doing some statistical work. If you are doing foreign pricing quant related work, you need to be familiar with the derivatives structure and market, including market data, etc., and you need to be familiar with it the fastest.