In the many varied discussions now taking place in the global financial services industry, individuals frequently discuss which qualification will better provide a career path, CPA (Certified Public Accountant) or FRM (Financial Risk Manager).
Both qualifications are well-regarded and of value, but they have different emphases and offerings. CPA emphasises accounting, auditing, and financial reporting, and FRM emphasises risk management, analytics, and financial modelling.
Let’s compare the structure, fees related to the course, career scopes, and global recognition.
CPA Certification: Fees, Structure, and Career Scope
The CPA certification is one of the most recognised accounting credentials in the world. This can be especially useful if you’re planning to build a career in audit, accounting, taxation, or corporate finance.
Course Structure:
The CPA exam is divided into four sections:
- AUD (Auditing & Attestation): This tests your auditing and assurance skills.
- BEC (Business Environment & Concepts): This will cover business laws, corporate governance, and economics.
- FAR (Financial Accounting & Reporting): This focuses on the depth of knowledge required of financial reporting standards.
- REG (Regulation): This covers U.S. taxation, business law, and ethics. Most candidates will complete the CPA exam within 12-18 months, depending on how much time they have to prepare.
Fees:
Costs involved for the CPA exam vary by state board but typically consist of:
- Application + Registration fees: $1,000-1,500 (approx. INR 80,000-1.2 lakh).
- Exam fees: Just around $250 per section.
- Overall cost in India: Approx. INR 2 – 2.5 lakhs, including coaching.
Job Opportunities:
After you have obtained your CPA, you will be qualified to work:
- In the Big 4 accounting firms or audit practices.
- In tax consulting or regulatory compliance positions.
- In corporate finance departments.
- As roles like Auditor, Tax Consultant, Financial Controller, CFO, etc.
The CPA designation is recognised across the world, albeit predominantly in the U.S. and countries aligned to U.S. GAAP.
FRM Course: Fees, Structure, and Career Scope
The FRM (Financial Risk Manager) certification is for individuals looking to concentrate on risk management, investment banking, and financial analytics. The FRM course is considered the gold standard for careers involving risk.
Course Structure:
The FRM comprises two levels:
- Level I: Covers quantitative analysis, risk models and valuation; the tools to analyse financial risk.
- Level II: Covers the application of risk management in market risk, credit risk, operational risk and investment management.
The FRM is typically completed in 1-2 years, depending on your success and speed in passing the exams.
Fees:
The FRM has the following fee structure:
- Programme enrolment fee (one-time): $400.
- Exam fees: $600 – 1,000 per part depending on registration period early or late.
- Total cost in India: Approximately INR 1.5 – 2 lakhs including coaching.
Career Opportunities:
If you become an FRM, you could find a career path as a Risk Manager, Investment Banker, Quantitative Analyst, or Risk Consultant, working for organisations such as global investment banks, hedge funds, credit rating agencies, or regulatory entities.
The designation is well-recognised for financial analytics and risk management roles in multinationals and has strong recognition as a brand internationally among major financial hubs like New York, London, Singapore, and Hong Kong.
CPA vs FRM: Key Differences You Should Know
● Duration:
- CPA: CPA generally takes 12-18 months.
- FRM: FRM takes around 1-2 years based on passing rate
● Course Fees:
- CPA: CPA costs around INR 2-2.5 lakhs.
- FRM: FRM costs around INR 1.5-2 lakhs.
- FRM: FRM costs around INR 1.5-2 lakhs.
● Focus Area:
- CPA: Accounting, auditing, taxation, and compliance.
- FRM: Risk management, financial modelling, and analytics.
- FRM: Risk management, financial modelling, and analytics.
● Global Reach:
- CPA: Strong in the U.S. and countries following U.S. GAAP.
- FRM: Global appeal, especially in financial risk and investment banking sectors.
- FRM: Global appeal, especially in financial risk and investment banking sectors.
● Career Roles:
- CPA: Auditor, Tax Consultant, CFO, Financial Controller.
- FRM: Risk Analyst, Risk Manager, Investment Banker, Consultant.
- FRM: Risk Analyst, Risk Manager, Investment Banker, Consultant.
Which Path Should You Choose?
The decision to choose a CPA orFRM course depends on your career decisions and goals.
- If you will benefit from CPA experience in an accounting, audit, or regulatory/compliance environment, CPA is a better option. CPA has strong international recognition and the best recognition in corporate and accounting firms.
- If you enjoy analytics and financial markets and are passionate about risk analysis, the FRM will provide the best chance of a future job in high-demand roles in banks and organisations primarily focused on managing or identifying risk.
Conclusion
Both CPA certification and FRM are respected international certifications but have different career paths. CPA is a good fit for career paths that specialise in accounting, auditing and taxes, while FRM is better for career paths focused on financial risk and financial analytics.
To put it another way, when you take CPA, you are sharpening your auditing and accounting skills, while with FRM, you are sharpening your analytical and risk management skills.
The smarter choice comes down to where you want to lead your career, looking at the numbers like a CPA or looking at the risks both qualitatively and quantitatively like an FRM.