Sunday, March 8, 2009

FRM Vs CFA for Quant Job/ Risk management

Hi All
I first of all request all of you to please post your questions on blog and avoid sending e-mails. Although, We will try and answer those e-mails as well..

Question: I am a dual degree for IITM (CSE). I am working in IT sector since 2007 Dec. I started reading about finance and got interested in it so I decided to go for FRM as I found the content more of my interest. I wrote FRM 2008 but did not get through it.I can not go for MS or MBA right now. I am planning to do either of them after 4-5 years but I would like to enter into finance(risk management, quant) desperately :)So now I am very confused as what to choose FRM or CFA (as it is more recognized) or both for this year? :) Personally I am more inclined towards FRM but would like to know your views. Also is it really safe to switch in finance domain in current scenario??
The simple and straight answer in my opinion is FRM. As you mentioned, you have been working in IT domain for last 1- 1.5 years, moving on to a quant role would be a smooth transition ( ofcourse with little more skill set). FRM is specifically designed to pursue risk management / quant roles. By work nature, risk manageemnt jobs are heavily quantitative and would suit a background like yours. As I mentioned in one of my earlier posts, for entry level jobs it doesn't really make any difference if you are FRM / CFA.
Good points about FRM ( relevant to your specific case) :
1) Has only 1 level ( Would change to 2 levels from next year)
2) Clearly shows your focused interest towards risk management.
3) Roles like Credit risk and Market risk require experience of working on advanced excel, access, perl and other statistical softwares.
4) Adds a uniqueness to your profile
@ CFA-- You can actually find hundreds of people with CFA level 1 and level 2. You woudn't do yourself much good by adding to this crowd. I mean CFA is a fantastic option if you want to enter investment management, valuation , equity research roles and importantly, clear all the three levels. So CFA requires a dedicated effort of 2-3 years to achieve fruitful gains.
If you carry the passion for finance and are not currently sure about which role you want to enter then appearing for both FRM and CFA is a good idea and you should do it. You will have to plan your schedule and finances.
Regarding exam strategies, we will be posting very soon...

Cheers
BG
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15 comments:

  1. My Random ThoughtsMarch 9, 2009 at 9:38 AM

    Hi BG,

    Thanks for posting the reply!
    It's helpful.

    Archana

    ReplyDelete
  2. paramdeepApril 8, 2009 at 9:01 AM

    Hi Brijesh,

    Just saw your blog. Really interesting!

    It seems that you have shifted from HSBC to DB.. interesting.. so whats new at your end?

    Send me your latest email id and phone number.

    Warm Regards,
    Paramdeep
    Pristine Careers
    paramdeep@eneev.com
    +91 9311845000

    ReplyDelete
  3. asterixMay 29, 2009 at 12:36 PM

    hey.. thnx for this nice piece of information.
    I have a query. after u clear the FRM exam, u hve to get 2 yrs job experience in order to get a certificate. wht kind of job here is required and is the certification a dire need to say that u hve qualified ??

    ReplyDelete
  4. Ankur GJuly 24, 2009 at 10:58 AM

    Hi Brijesh,

    It was good reading your blog.. seems like finally thoughts (read doubts) in my mind are finally crystallising..

    Can I have your email Id?

    Regards,
    Ankur

    ReplyDelete
  5. VagabondOctober 28, 2009 at 7:19 PM

    Hi,
    Currently i work in the credit division of a bank..mainly..analysing credit proposals etc..
    i wish to move to more quantitative finance..and have decided to take FRM. I was wondering if you could give me some idea about PRM and if there is practically any differnce between the two. Would PRM open any more job avenues than solely FRM would..??
    Thanks

    ReplyDelete
  6. davidstanleyDecember 14, 2009 at 4:19 AM

    Hi,

    I recently visit your blog and reading your post it is a very intersting post thanks a lot for sharing this .

    http://www.justblogme.com/workworkwork/387327/risk+management+while+working.html

    ReplyDelete
  7. UnknownJanuary 11, 2010 at 7:04 AM

    Hi,
    I m doing my PGPPMI in financial servies so i want to know whether i can do FRM course along with this or not.

    ReplyDelete
  8. RishikeshMarch 14, 2010 at 7:57 AM

    Hi,

    I am from engineering background and working as a Sr. Programmer in an IT company in Finance (Trading Domain) related applications development from last 4 years. I have interest in finance domain. Kindly suggest me whether I should go for FRM or CFA . Also is this really benificial for me in long term as presently i am on techno functional side.

    ReplyDelete
  9. AnonymousMarch 21, 2010 at 3:29 AM

    hi brijesh

    i came across ur blog n got stucked by it. i am an mba(fin + marketing) n working with icici bank in corporate banking sales. i m not happy with the profile n quite eager to add more professional degree. should i go for FRM or CFA? plz suggest.

    ReplyDelete
  10. AnonymousApril 18, 2010 at 11:25 PM

    i am C.A (India) . I am giving frm this May -2010.

    Basically i am looking for a profile in credit risk management.

    Right now i am working with NBFC in the position of finance manager.

    can you provide more insights to me so as to build my career

    ReplyDelete
  11. AnonymousJuly 22, 2010 at 12:59 AM

    hi
    i am doing MBA in finance have no experience can u tell me whether i go for FRM or CFM PLZ
    thank u
    minkesh
    minkesh.malik@gmail.com

    ReplyDelete
  12. Jobs in PakistanOctober 15, 2010 at 2:51 AM

    Its nice info,great idea & great blog,done well.jobs in Pakistan.

    ReplyDelete
  13. UnknownNovember 10, 2010 at 9:32 PM

    Capital market research becomes essential in order to decide upon the investing equity research jobs

    ReplyDelete
  14. SreecharabAugust 8, 2011 at 9:32 AM

    Hi

    I am a B.com Grad, With 3 yrs exp in taxation and Credit risk. Please let me know as to how to prepare for FRM i want to take up L1 in May 2012

    ReplyDelete
  15. negiFebruary 8, 2017 at 9:50 AM

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    ReplyDelete

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