FRM vs PRM: Which is a better career option for you?

With different options available for certifications, participants have doubts whether to give FRM or PRM for risk management certifications. We keep getting a lot of queries on this aspect and thought that we would put our thoughts together on this.

First point to note that both GARP (which conducts FRM) and PRMIA (which conducts PRM) are very well respected and reputed global organizations and EduPristine is an official course provider for both Financial Risk Management and Professional Risk Management.

However there are certain aspects of the certification exams which differentiate them. The certification you should give is more based on your geographic preference, flexibility in giving exam, job preference, focus on understanding and the kind of time schedules that you have in your job.

We have summarized the unique points of these certification exams in the below infographic for your reference:

FRM vs PRM comparison infographic

Some other observations that we have regarding the industry in India are:

  • FRM Exam is more popular in India amongst test-takers and also more widely-recognized among employers because it has a longer history, however PRM is quickly gaining ground and both designations are equally respected

  • Both examinations have almost the same syllabus with an overlap of almost 80-90% of the syllabus. Both require equal rigor to pass

  • Some people good at quant/ mathematics prefer PRM as it is more rigorous on quantitative part. Many CFA Charterholders/Actuaries who want a risk management certification prefer PRM since it grants them exemption of upto 2 exams

  • The ideal way to prepare for the FRM / PRM examination is to get your concepts right and then solve a lot of numerical and applied problems in that area. Going through 10 books would not help you crack the exam. Instead read through any reading material/ presentation and then attempt a lot of questions.

See, it wasn’t that difficult or confusing. Simple and clear! You can easily evaluate which is the course you want to enrol in.
EduPristine provides training for both these courses. You can check the course details for FRM and PRM and if you have any other query mention it in the comments box below.

Career Games: PRM vs FRM

Are risk management courses and the confusion to choose one putting your careers at risk? Well, you needn’t worry anymore. They are not as confusing. They are pretty easy to take on as well as to choose from. You can easily compare and analyse for yourself which risk manager course do you want to undertake.

FRM: It stands for Financial Risk Manager. It is a globally recognised professional certification provided by the Global Associations of Risk Professionals (GARP, USA). The certification and study induces one to go deeper into the financial markets and analyse it to configure risks.

PRM: It stands for Professional Risk Manager. It is recognised world-wide and has an international certification provided by the Professional Risk Managers’ International Association (PRMIA). It enhances one’s risk management skills to assess and analyse financial markets accurately.

PRM vs FRM

 FRM vs PRM infographic

PS: The work experience mentioned in the infographic is to attain the charter whereas to take the FRM and PRM examinations, one need not necessarily have work experience.

PREP TIPS: FRM or PRM

It does not matter what course you opt for but go through these tips to help you out with both the exams:

• Both the exams allow the use of calculators; so while preparing use only those calculators to get a hand set grip on them.

• Make use of practice papers and worksheets available on the net.

• Go through the previous question papers but do not cling onto them because your exam may contain similar questions not the SAME!

• Make sure that while writing the practice papers you time yourself so that you finish well in time on the examination date.

• Give quality time when you are studying , rather than quantity. You may sit in front of the book for 10 hours and not absorb anything or you may sit for 3 hours and gain more than you gained the whole week .

• Do not forget to make notes. I know that you will remember that point but just for a cross check jot it down.

• The formulas and equations can be written in pieces of papers and put in different pockets , so that each time you feel your pockets to find the magic money you get an equation that will help you get there.

• Lastly, don’t stress or panic. It’s an exam you are giving not fighting the world war. So study hard and well. Give it your best!

See, it wasn’t that difficult or confusing. Simple and clear! You can easily evaluate which is the course you want to enrol in. If you are confused and want any other help, leave a comment below or visit FRM and PRM pages.

Christmas Discounts for Finance Courses!

This Christmas Buy a Gift of Learning and Add Value to 2014 and Beyond!

That time of year has come again when Saint Nicholas brings happiness in the form of presents. Regardless of the religion that one follows, everyone loves presents. So we at EduPristine are giving YOU, our faithful and loyal customer base, a present! The good thing about this present is that it will help mould your career and professional life.

Whether you are interested in Financial Modeling, CFA, FRM, PRM, Business Analytics or any other finance course that we offer, this present will be of great help to you.

For all online courses, we are offering a FLAT 25% DISCOUNT on the total fee! This offer ends on December 27, 2013.
Click on the image to know more!

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If you are like Saint Nicholas, popularly known as Santa Claus, and are very selfless and giving, you could gift a friend or a loved one this present. When you do that, you will be helping that person by providing a direction to his or her career and that person will always remain eternally grateful to you!

The entire EduPristine family wishes you and your loved ones a very Merry Christmas!.

Major Changes Introduced by PRMIA for PRM Exam

URGENT NOTICE: PRMIA (Professional Risk Managers’ International Association) has announced some critical changes regarding the PRM Exam. These changes are due to take effect from January 1, 2014.

These major changes brought by PRMIA covers the following aspects::

  • 4 Years if no bachelor degree
  • 2 Years if bachelor degree
  • No experience requirements if graduate school or holder of other accepted professional Designations (CFA, CAIA, CQF, etc.)

3) Sale of Exam Vouchers:

No one person can buy exam vouchers individually. These vouchers will have to be sold in lots and bundles along with the PRM Handbook.

However, if a member has already purchased the Handbook, exceptions will be made. To read more about these exceptions, scroll down to the FAQs.

Some Frequently Asked Questions(FAQ):

Q. When do the necessary changes take effect?

A. January 1st, 2014

Q: What are the new minimum experience requirements to take the PRM exam?

A: Minimum experience requirements include:
• 4 Years if no bachelor degree
• 2 Years if bachelor degree
• No experience requirements if graduate school (i.e. MBA, MSF, MQF etc.) or holder of other accepted professional Designations (CFA, CAIA, CQF, etc.)

Q: PRMIA announced earlier that it would be updating the PRM exam and study materials. What will be updated, and what is the timeframe for these changes?

A: PRMIA plans on releasing an updated syllabus, Professional Risk Managers’ (PRM) Handbook and new exams during the course of 2014.  Further information will be provided as we get closer to the release.

Q: When is the last date for “on demand” testing?

A: December 31, 2013

Q: How significant will the curriculum changes be?

A: PRM Handbook Volumes I & II will undergo tactical updates and minor structural modifications.  PRM Handbook Volume III – Risk Management Practices will be completely replaced by a new publication.

Q: Will the updated materials be made available for free?

A: No. PRMIA will not make the new materials available for free.

Q: If I am already a PRM Candidate, will I be able to purchase individual vouchers?

A: Yes, current PRM Candidates will be able to purchase individual PRM vouchers by completing a form on the PRMIA website.

Q: If I am already a PRM Candidate, will I be able to purchase individual PRM Handbooks?

A: Yes, both current and prospective candidates will have the option of purchasing the PRM Handbook. However, if one plans to begin the PRM Program after January 1st 2014, they will be required to purchase a PRM bundle even if they have already purchased the PRM Handbook.

Q: Will CFA Charter holders, who are exempt from PRM Exams I & II, be required to purchase the PRM bundle if they enroll in the PRM Program after January 1st 2014?

A: Yes, all new PRM candidates that begin the PRM Program after January 1st 2014 will be required to purchase the PRM bundle.

Q: If I am already a PRM candidate but do not complete the PRM Designation before January 1st 2014, will I be subject to the new experience requirements?

A: No, only candidates enrolling in the PRM Program after January 1st 2014 will be subject to the new experience requirements.

When taking these various questions into consideration, we are left with a few questions such as:

Why?

Will the new changes make the efficiency and efficacy of running the PRM Exam smoother across many countries across the world?

Will it leave students ample time to study in view of the changes introduced so briskly?

Will the students be left bewildered due to the rapid progression of changes regarding dates, slots, study material, curriculum?

In response to some of these questions, it can be safely assumed the changes will have their pros and cons just like any system that is emended.

Having a single date for an exam that is taken by students across the world will indeed make it a simpler task for PRIMIA. For instance, the CFA and FRM Exams of a particular level or maybe all levels are taken on one day.

Students will have a few teething problems initially, but it can be believed that it will lead to a more systematic and organized means of study.

In light of the many changes introduced in different aspects of the PRM Exam, as long as students keep track of the changes, then things will flow smoothly.

These changes will be updated regularly on the PRM page. So just follow the link to know about these changes and stay tuned for more.

Why go for Financial Certifications?

Here’s a query which we at EduPristine get from most people new to finance domain:

“Why should I go for a financial certification & which one is for me?”

Most knobs wish to find out how financial certifications help them with their professional aspirations and which exam makes most sense to go for.

Considering the fact that the candidates are from different backgrounds, the answer cannot be generalized. There are some, who are already in some way related to the finance industry, some coming with IT backgrounds, some already possess a solid knowledge of financial products and involved instruments and a good general understanding of the industry. Then there are those who before going for graduation in quart degree, would like to build up a more solid foundation with an official exam.

Some of the most sought after certifications are:

Chartered Financial Analyst

Chartered Financial Analyst (CFA) offered by CFA Institute (formerly known as AIMR):
There are three levels of this exam:

  • The Level I: Introduction to asset valuation, financial reporting and analysis, and portfolio management techniques

  • The Level II: Asset valuation and also includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation

  • The Level III: Portfolio management and also includes strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions.

Financial Risk Manager

Financial Risk Manager (FRM) offered by GARP – Global Association of Risk Professionals: This exam has two parts:

Part I:

  • Financial Markets and Products

  • Foundations of Risk Management

  • Quantitative Analysis

  • Valuation and Risk Models

Part II:

  • Market Risk Measurement and Management

  • Credit Risk Measurement and Management

  • Operational and Integrated Risk Management

  • Risk Management and Investment Management

  • Current Issues in Financial Markets

Professional Risk Manager

Professional Risk Managers (PRM) offered by PRMIA – Professional Risk Managers’ International Association:This exam has four parts:

  • EXAM I: Finance Theory, Financial Instruments and Markets

  • EXAM II: Mathematical Foundations of Risk Measurement

  • EXAM III: Risk Management Practices

  • EXAM IV: Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws

Then there are others like:

  • Associate of the Society of Actuaries (ASA)– Focuses the fundamental concepts and techniques of modeling and managing risk

  • Chartered Enterprise Risk Analyst (CERA)– Centers around identification, measurements and management of risk within risk bearing enterprises

  • Fellow of the Society of Actuaries (FSA)– Deals with financial decisions making concerning retirement benefits, life insurance, annuities, health insurance, investments, finance, and enterprise risk management, including the application of advanced concepts and techniques for modeling and managing risk.

The thing they all have in common is that these certifications:

  • Help you to better equip yourself with the essential knowledge to pursue a career in finance

  • Empower you by adding credentials to your resume

  • Expand your professional opportunities

  • Provides you with the ability to network with some of the world’s leading finance professionals.

Let’s consider what these most sought after certifications have in store, for you

Talking from curriculum perspective:

The FRM curriculum goes into the detail on areas of financial and non-financial risk while the CFA curriculum provides a broad view of financial analysis in general.

The FRM Part 1 syllabus will overlap with some part of the CFA curriculum, mainly in the areas of quantitative analysis, portfolio theory, derivatives, and fixed income securities etc.

The FRM and CFA overlap at Part 2/Level 2 is minimal. Still, some concepts that are mentioned briefly in the CFA curriculum, such as value at risk, credit risk, risk budgeting, and hedge funds, are expanded upon in Part 2 FRM curriculum.

Exclusive to the FRM exams are readings on operational and integrated risk management, Basel II, current issues in financial markets, and case studies in risk management.

Broadly speaking, the FRM exams tend to have more of a quantitative focus than the CFA exams.

Regarding PRM syllabus, it’s almost the same as FRM syllabus with an overlap of almost 80-90%. PRM is a bit more extensive and rigorous on quantitative part. CFAs or Actuaries who want a risk management certification prefer PRM since it grants them exemption of upto 2 exams.

CFA and FRM Exam are slightly more popular among test- takers and among employers because it has a longer history, however PRM is quickly gaining ground and all three designations have come to be equally respected.

Talking about the job opportunities:

  • The key thing to note is that job markets are diverse

  • The CFA is helpful if you want to work in equity research or, say, become a debt analyst

  • The FRM/PRM would be more relevant to a risk manager

  • For other Financial Services jobs (e.g., consulting, sales, management), these credentials are elements that complement your overall presentation

  • Like the MBA, they don’t buy you advancement per se, rather they enhance your resume.

Let me assure you that among the industry, there is NO prevailing ‘argument’ for or against one of the exams.

So take a look at the syllabi, test-structure and most importantly your long term career goals to make out which one is the best for you. Once you zero-in, take the plunge!

Job: Associate with MX Capital

Disclaimer : This is to clarify that EduPristine has no economic interest in any job postings that are done at our website except for those being offered by Pristine. The job postings are for information purpose only and are aimed at participants who are pursuing studies in the area of finance. Any due diligence that has to be done by the company and by the candidate is to be done at their own end. Pristine would be, in no way, responsible for any false information provided by the company or the candidate.

Company description

MX Capital is a boutique investment bank focused on Private Equity, Mergers & Acquisition and Strategic Advisory. Please visit the website for details

Job description

The Associate will work on and be exposed to the entire deal life cycle – from sourcing to execution. Daily tasks include but are not limited to: financial modeling, preparing pitch books / presentations, researching & analyzing sectors / companies, coordinating with third parties (e.g. due diligence agencies), coordinating process for deals, etc. Associate will gain from various benefits of working in a boutique I – Bank (small team, exposure to clients, investors and senior management meetings, flexibility, entrepreneurial culture, etc)

In line with the industry norms, compensation would be structured to be fixed + high variable.

Skills required

  • Strong academic achievement (CA or Master’s or Bachelor’s degree in Commerce / Finance / Accounts / Management backgrounds only)
  • Strong MS Word, Excel and PowerPoint skills
  • Good understanding of corporate finance and financial modeling
  • Excellent communication skills, both verbal and written
  • Hard working and must be able to work under deadline pressure.
  • Strong work ethics
  • Must be self-motivated and entrepreneurial
  • Adept at data management and should possess research skills
  • Attention to details and must be a quick learner
  • 1 – 2 years of experience in corporate finance / consulting preferred

Contact

Compensation

In line with the industry norms, compensation would be structured to be fixed + high variable.

Contact

Eligible and interested candidates may email their CV at info@mxcapital.in.