A Big thanks to the BT team i have completed FRM Part 2 exam in Nov 2015. I am in the banking sector in India, working as a credit analyst (large corporate credit), which includes risk analysis too.
now that FRM is over I was thinking about completing another certification. With respect to my profile, please advice is CFA would be relevant after completing FRM since CFA is more of a generic course as compared to FRM. Or should i consider other certifications like ERP etc.
Agree with Mkaim..sometimes your boss can be neither a CFA nor a FRM and you have to get along with him. If you want to climb the ladder, it is surely people skills else you will be doing number crunching for someone else. Human mind is immense and complex and dealing with different personalities is more tougher than passing CFA or FRM or any other tough exams.
I am awe-struck when a driver who have not even passed class 8, did (one CFA question) -discounted cash flow and NPV for buying a vehicle on loan or not just in his head without a calculator and that too while driving a car. He does not know what is DCF or NPV but he literally did the maths in his head in two minutes.
In a nutshell, you can attain all the degrees in the world and not good in people skills which is not an easy task at all. Humans are always in delta t and no formula can succeed in it...beyond my comprehension.
It all depends .... There is a big difference between charters/designations (FRM, CFA, CAIA, etc) vs licenses (ASA/FSA/MAAA, CPA, etc)
There are jobs in insurance (actuarial) that require the attainment of ASA/MAAA at a minimum. Likewise, there are accounting jobs that require the CPA. Why? Regulations require it!
FRM and CFA are not required in banking regulations. However, most risk analytics jobs REQUIRE at least a master's degree in Math or Stat. Then they indicate that FRM or CFA is preferred. Of course PhD is preferred as well.
My point is, collecting FRM + CFA + CAIA etc is ok but may be redudant. They're NOT licenses.
Decide what you want to specialize in. If you want to be in analytics, a math/Stat master's/PhD is needed, if portfolio mgmt then CFA, if risk mgmt, then FRM, you see the point ...
Actuarial designations and CPA are on a different level coz they're not just another designation, they're licenses.
Thus, once you have EITHER FRM or CFA, that should be good enough. It shows you GOT it!
If you want another designation, go for a license (CPA in banking, ASA/FSA for insurance).
It would be nice if GARP would someday convince the regulators to require bank risk professionals to pass the FRM. That would make FRM so valuable coz it would be a license and not just a designation.
Hi @Tarun Kaushal You mentioned ERP and I just wanted to chime in that I posted the webinar slides to our FB page at http://trtl.bz/1JME7i4 (I also noted that I have been surprised, candidly, at the low market penetration of the ERP). I agree with @ShaktiRathore and @brian.field about the CFA. About the CFA, I would just add: I've been a CFA for over 12 years and it truly is the gold standard, in substance and reputation. Just last night, at the gym, somebody asked me about my CFA (in casual conversation) and they were impressed that I had one. It's one of the best investments I've ever made in myself because pretty much anybody in finance is aware of the CFA and respects it. Of course, I mentioned the FRM, but as sometimes or often the case, I had to introduce/explain the FRM: many people who work in finance have either never heard of it (in my experience) or have a superficial awareness. I think it's improving but the CFA has a decades long head start, the FRM is actually doing quite well in growth by comparison but still doesn't have nearly the level of general awareness. Thanks,
Well, I passed CFA Level 1 in 2012, then got a busy job in London, got married, had a baby and then decided to resume my FRM studies instead. What a mess, huh? Need to get myself together and pass FRM this year and perhaps continue with CFA Level 2 next year. One step at a time...
CFA is not general but broad. I just wrote CFA Level 3 in June 2019 and will be writing FRM Part 2 in November 2019 after passing Part 1 in November 2018. I must say the two are a perfect combination. I would definitely recommend the CFA for you.