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FRM vs. CFA vs. CPA

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Should you get a CFA? Should you get an FRM? Should you get a CPA? In general terms it shouldn't be too hard to decide. If you want to be an accountant get the CPA. If you want to work in finance get the CFA. And if you want to work in risk management get the FRM. The big difference between the CFA and the FRM is that the FRM is more focused on statistical models where the CFA is more focused on finance and accounting. There is some good overlap between the two however the CFA is much more popular in banking because most people in banking do traditional finance. If your degree isn't in business and you want to work in quant finance I would recommend getting the FRM. All three are great designations and each encourage professionals to continue to learn after they graduate school. For students looking for a job, it can give you a slight advantage over those who do not have a designation. However, having a designation will not guarantee you a job.
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25 авг 2024

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Комментарии : 38

@lividpudding8565 6 лет назад

The example problems really help see the differences clearly! Thanks

@TheHij9 6 лет назад

Best video on net in its domain.

@DimitriBianco 6 лет назад

Thanks!

@rudyp2201 5 лет назад

Dude you are a bright guy! Love your thought process behind delivering materials

@sebastiandonickler.6715 3 года назад

Tks for the books recommendation.

@BryWMac 7 дней назад

The CFA has regression analysis and time series questions in level 2, maybe that would be more appropriate to compare

@TjIrineu 3 года назад

Really insightful video. Thanks.

@DimitriBianco 3 года назад

You're welcome

@sandeepkavadi2504 5 лет назад

What's your opinion on the CQF certification? Would it be useful for some one switching from commercial banking to quant roles?

@JeePsSsS 3 года назад

Interesting question. The problem I see with CQF is its price, it is so much more expensive than FRM, CFA or CPA...

@mdubs12 7 месяцев назад

The CPA is a “license” the CFA and FRM are just certs. A CPA license is legally required to sign off on audits and provide opinions on financial statement accuracy.

@deepak_shinde 5 лет назад

Very helpful.. Mainly examples you showed with books ✌️

@BoredToBoard 7 лет назад

Well, I am studying CA, CFA and FRM concurrently ;P. I would disagree slightly with the risk aspect as there are a lot of qualitative measures that would go into reports at the board level. I would also further the CPA to state that accounts are governed by rules or principles; however, accounting strategy is extremely important. For example, recent updates to IFRS fin instruments with economic credit losses or the significant changes to operating leases. Having an accounting knowledge is extremely helpful to contextualise fundamental analysis: is this company recycling OCI, big bath provisions, etc.

@ghostwhowalks5623 4 года назад

Instead of the FRM...why not just do the CQF? Would appreciate your thoughts.

@DimitriBianco 4 года назад

The CQF would be a much better option compared to the FRM due to the materials covered. The downside of the CQF is the cost at $20,000.

@q45dedos 4 года назад

Seeing this was really useful. I love quant, econometrics, etc.. I will pursue a career in quant finance and risk management, so I will do the FRM. In your experience, is it good to try to get the CFA too? Thx, greetings from Colombia.

@DimitriBianco 4 года назад

The FRM is a good high level view of the entire risk industry and helps quants as well as managers see the big picture. The CFA is good for the investing side of finance as a quant. It helps you understand the finance and accounting basics. Many investing firms on both the traditional and quantitative side like to have employees with the CFA. So yes, I would consider the CFA if you want to work on the investing side. I work on the banking side and it wouldn't add too much value.

@HarshPatel6293 4 года назад

Nice Video. Do you think it is worth getting the FRM certification if you do not have a supporting FE/QF degree or are not working in the Quant industry already? I ask this because most people who have an FRM are already quants or have a FE/QF degree.

@DimitriBianco 4 года назад

The FRM is really a high level understanding of risk. It is really mean for business managers however they have marketed it to quants. It hasn't done much career wise for most quants that I have seen. I also have it and haven't seen any advantages.

@bygnahzdivad 4 года назад

Or if you really don't want to have a life (for 4-5 years) after college, you can study for the FSA and FCAS designations with the SOA and CAS, 🤣🤣🤣.

@ibraheemali9541 7 лет назад

Hi, whats the pay difference between FRM vs. CFA vs. CPA?

@DimitriBianco 7 лет назад

+Ibraheem Ali This is a really hard question to answer. Each designation is really its own career path. I would say investment bankers make a lot and usually have a CFA however many people in corporate finance have a CFA and don't make as much as many others. Other factors such as the school name and degree type have a larger impact on income.

@ibraheemali9541 7 лет назад

+Dimitri Bianco Thank you for a prompt reply. So can you comment on these estimates www.bls.gov/ooh/management/financial-managers.htm#tab-1 ?? Also, nice video, looking forward for more to come and I have subscribed the Channel too :)

@DimitriBianco 7 лет назад

Ibraheem Ali for a financial manager (corporate finance) $121,750 seems right. If you end up working for a large bank doing banking the salary will be higher though.

@ibraheemali9541 7 лет назад

+Dimitri Binaco ok. Thanks alot for your insight on this :)

@chandupatlaanuragreddy281 6 лет назад

If i write FRM part1 and after a gap of 2 year i write FRM part 2 then i would have 5 years to submit the work experience right. so is that 5 years after i write FRM part 1 or 5 years after i write part 2 ???

@DimitriBianco 6 лет назад

Chandupatla Anurag Reddy it's within 5 years of passing the first exam.

@besavage2133 4 года назад

Can you tell me what's the future of CFA does it will loose its value in coming time

@DimitriBianco 4 года назад

For designations I think the CFA has done the best job at creating a brand and proving quality in the designation. Moving into the future I think it will continue to hold its value. Finance is changing however I don't see those with a finance background filling quant finance and risk management roles. Now that being said, traditional finance professionals will continue to do tradition finance which includes business strategy and corporate finance.

@besavage2133 4 года назад

@@DimitriBianco thank uh so much🤗

@MilkTea-sx8gd Год назад

Is FRM significantly different from Financial Engineering? Is it possible to get into a Financial Engineering program with just a bachelor's in business studies? Additionally, how can one prove mathematical ability in case they, for whatever reason, do not have a degree in a quantitative major like maths or physics?

@DimitriBianco Год назад

The FRM is just a high level overview of risk management (nothing like a quant masters). Yes it is possible to get into a quant masters program with a business degree. Some programs target business students. The business programs are typically weaker however some do a fairly good job at preparing your for a quant career...however you won't go into as rigorous materials. If you can't add something like a math masters, your next best option is to try and take a class online and add it to your resume.

@MilkTea-sx8gd Год назад

@@DimitriBianco Thank you for replying. I'm planning on getting a certificate in Financial Engineering from IIQF (Indian Institute for Quant Finance), which is similar to CQF, though not as recognised. However, it covers mathematics primer and financial engineering subjects. It may not be in great depth but will taking course like this help in getting admitted to MFE programs and the advanced Maths requirements be covered from the certificate? Also, is it possible to get a quant job with a certificate in QF rather than a Master's? Again, thank you for replying.

@DimitriBianco Год назад

@@MilkTea-sx8gd the certificate will help get into a masters. No, they aren't considered a substitute for a masters. You also want to get the masters in the country you want to work in.

@outstanding4330 4 года назад

Could you tell me what you said from 5:14 ~ 'this is bars using risk management ~~~~~~~ give you this because' i 'm sorry i don't understand and know what spell the part of ~~~~~~~~~~~ you said in the video??

@DimitriBianco 4 года назад

I'm talking about VaR (value at risk). I mention that business people think VaR is the only forum of risk management however this isn't true. Building models and managing risk across the entire business is important however they don't teach this in business schools.