Selecting the right certification to launch your career can be a challenging decision. Should you opt for the internationally recognized ACCA, or is the risk management-focused FRM the better fit for you? Finding the right course to match your career goals may seem overwhelming, but that’s exactly why we’re here to help!
While both ACCA and FRM offer promising opportunities, they each serve different professional paths. If you’re torn between the two, you’re in the right place. In this blog, we’ll explore the key differences between ACCA and FRM, guiding you toward a well-informed decision that aligns with your career aspirations and sets you up for long-term success.
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What is ACCA?
ACCA, or the Association of Chartered Certified Accountants, is a globally recognized professional body in the field of accounting. Established in 1904, ACCA has become synonymous with excellence in financial and management accountancy. With a membership of over 250,000 professionals across the world, ACCA-certified individuals are equipped to tackle financial challenges in various industries, including manufacturing, services, and more.
ACCA Course Highlights
- Global Recognition: The ACCA certification is widely acknowledged in over 180 countries, offering professionals the freedom to work globally and access international career opportunities.
- Comprehensive Curriculum: The ACCA course covers an extensive range of topics such as financial accounting, business law, management accounting, taxation, auditing, financial reporting, and strategic management, ensuring that students are prepared for diverse roles in finance and accounting.
- Diverse Career Opportunities: After completing the ACCA course, graduates can pursue multiple career paths, including roles such as financial analysts, auditors, forensic accountants, management accountants, financial controllers, and tax advisers.
- Flexibility: One of the standout features of the ACCA course is its flexibility. Students have the option to study part-time, allowing them to balance work, studies, and other commitments. The course also offers practical experience, enhancing students’ learning while earning their qualifications.
- Duration: Typically, completing the ACCA qualification takes around 2 to 3 years. This can vary based on the pace at which a student progresses or if exemptions are granted for prior qualifications.
What is FRM?
The Financial Risk Manager (FRM) certification, offered by the Global Association of Risk Professionals (GARP), is a specialized qualification that focuses on risk management. If you are passionate about understanding and mitigating financial risks, the FRM certification is your gateway to risk management roles across banks, hedge funds, and large corporations.
FRM Course Highlights
- Risk Management Focus: The FRM course is dedicated to equipping professionals with deep knowledge in managing financial risks that affect businesses and markets. It provides an in-depth understanding of risk analysis, quantitative finance models, and the handling of various financial instruments.
- Two-Part Structure: The FRM course is divided into two parts. Part I covers the foundational techniques and tools for risk management, with a focus on financial markets, quantitative finance, and risk analysis. Part II builds on this knowledge, addressing practical risk management strategies, credit risk, investment risks, and market risks.
- Duration: On average, students complete the FRM certification in 1 to 2 years, allowing for a quicker transition into the job market compared to other qualifications.
- Global Demand: Financial risk management is crucial for any financial institution. As a result, there is a high demand for skilled FRM professionals worldwide, with recognition from top banks, investment firms, and multinational corporations.
- Career Opportunities: FRM-certified professionals can take up roles such as Risk Analysts, Risk Managers, Market Risk Managers, Credit Risk Managers, and Chief Risk Officers (CROs), where they play a key role in managing financial risks and ensuring business stability during market fluctuations.
| Factor | ACCA (Association of Chartered Certified Accountants) | FRM (Financial Risk Manager) |
|---|---|---|
| Overview | ACCA is an internationally recognized qualification in finance, management accounting, and taxation. | FRM is a specialized certification in financial risk management. |
| Certifying Institute | Association of Chartered Certified Accountants (ACCA) | Global Association of Risk Professionals (GARP) |
| Primary Focus | Comprehensive expertise in finance, management accounting, auditing, and taxation. | Specialized knowledge of credit, market, and operational risks in financial risk management. |
| Global Recognition | ACCA is recognized globally, with validity in over 180 countries, and its membership is esteemed across various industries worldwide. | Widely recognized worldwide, especially in banking, financial institutions, and the risk management sector. |
| Course Structure | The 13 papers are organized into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. | Comprised of two parts: FRM Part I and FRM Part II. FRM Part I is built around the foundation, and FRM Part II focuses on application. |
| Duration | 2-3 years but it can vary based on the exemptions available to you. | It takes about 1-2 years depending on preparation and exam schedule. |
| Prerequisites | The minimum requirement for entry-level candidates is a high school diploma or its equivalent. However, to complete the ACCA qualification, a graduation degree is necessary. | While a bachelor’s degree is recommended, it is not a mandatory requirement. |
| Exam Frequency | Exams are conducted quarterly, allowing students to take them at a time that suits their schedule. | The exams are held twice a year; in May and November. Part I needs to be cleared before taking Part II. |
| Subjects Covered | Financial accounting, management accounting, taxation, auditing, business law, and strategic management. | Quantitative analysis, market and credit risk, operational risk, risk modeling, and investment management strategies. |
| Flexibility | Highly flexible, allowing for simultaneous work and study. It also offers opportunities for distance learning and self-paced study. | Demands significant focus and concentration due to its specialized nature, but can be pursued alongside a job. |
| Eligibility for Exemptions | ACCA offers entry exemptions for candidates who hold relevant qualifications, such as degrees in accounting, finance, or Chartered Accountancy (CA). | No exemptions for FRM exams; candidates have to pass both parts. |
| Work Experience Requirement | Must have three years of relevant work experience, or meet the direct entry requirements to become a member of the ACCA. | Two years of work experience in related risk management to become FRM certified. |
| Job Profiles | Financial Accountant, Management Accountant, Tax Adviser, Auditor, Financial Analyst, CFO, etc. | Risk Analyst, Risk Manager, Portfolio Manager, Chief Risk Officer (CRO), Market Risk Manager, Credit Risk Manager, etc. |
| Industries | Accounting firms, audit firms, consulting firms, financial institutions, and multinational corporations. | Financial institutions, banks, investment firms, hedge funds, insurance companies, regulatory bodies, and corporations. |
| Typical Salary Range | The average starting annual salary for ACCA professionals in India can reach up to ₹12 lakhs. | The average starting annual salary for FRM professionals in India can go up to ₹8 lakhs. |
| Cost of Certification | Approximately ₹3-4 lakhs (Registration fees, Exam fee, study materials). | ₹1-2 lakhs (exam fees, registration fees, and study materials). |
| Skills | Accounting knowledge, financial reporting, strategic thinking, tax management, ethical decision-making. | Risk analysis, risk modeling, quantitative techniques, financial markets understanding, risk mitigation. |
| Demand in the Market | ACCA professionals are highly sought after across various industries, particularly in accounting, auditing, and financial advisory fields. | FRM holders are highly sought after in the financial sector, especially for risk management positions in banks and large corporations. |
| Career Growth | It offers a diverse range of career opportunities in accounting, auditing, and management, and can serve as a pathway to senior roles such as CFO or CEO. | Career progression typically leads to senior risk management roles, such as Chief Risk Officer. |
| Long-Term Prospects | The ACCA provides a versatile career path, offering flexibility across industries and opening doors to various roles and leadership opportunities. | FRM provides a specialized and highly rewarding career path in risk management, driven by the growing demand as organizations place greater emphasis on managing financial risks. |
| Continuous Professional Development (CPD) | ACCA membership requires mandatory CPD (Continuing Professional Development) to ensure ongoing learning and professional growth. | CPD is not mandatory, but staying informed about industry trends and best practices in risk management is strongly advised. |
When deciding between ACCA vs FRM, it’s essential to consider your career goals, interests, and the kind of expertise you want to develop. Both ACCA and FRM are prestigious qualifications that can open doors to promising careers, but they cater to different aspects of the finance world. Here’s how you can make an informed choice:
- 1. Career Focus
- ACCA: Ideal for building a career in accounting, finance, management accounting, taxation, or auditing. Offers a broad range of job roles across industries like financial accounting, management consulting, and corporate finance. Prepares you for roles such as CFO or Finance Manager.
- FRM: Focuses specifically on risk management within financial institutions. Suitable for roles like Risk Analyst, Credit Risk Manager, and Chief Risk Officer (CRO). Ideal for those passionate about managing and mitigating financial risks in industries like banking, insurance, and corporate finance.
- 2. Course Structure and Duration
- ACCA: Divided into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. Includes 13 papers covering subjects like auditing, taxation, and strategic management. Typically takes 3–4 years to complete.
- FRM: Divided into two parts: Part I and Part II. Focuses on financial risk, market analysis, credit risk, and operational risk. Can be completed in 1–2 years.
- 3. Industry Relevance
- ACCA: Recognized globally and offers career opportunities across a wide range of industries, including banking, auditing, consulting, and taxation. Ideal for those seeking flexibility in career paths.
- FRM: Has a more niche focus but is highly respected in financial institutions, particularly in risk management roles. Relevant in industries like investment banking, hedge funds, and corporate risk management departments.
- 4. Global Recognition and Career Opportunities
- ACCA: Globally recognized, with membership in over 180 countries. Offers flexibility to work anywhere in the world and pursue various career paths in accounting, financial advisory, and management.
- FRM: Highly regarded in global financial institutions, especially in risk management. There is growing demand for FRM professionals due to the increasing complexity of financial markets, offering rewarding career opportunities.
- 5. Salary Potential
- ACCA: Professionals with an ACCA qualification tend to earn competitive salaries across industries, often stepping into high-paying roles like CFOs, finance managers, and tax consultants.
- FRM: FRM professionals also command high salaries, particularly within financial institutions like banks and hedge funds. The increasing importance of financial risk management drives demand for skilled professionals, resulting in attractive pay packages.
Why You Should Study ACCA from Unique Global Education
Studying ACCA (Association of Chartered Certified Accountants) through Unique Global Education offers an exceptional opportunity to gain a globally recognized qualification in finance and accounting. ACCA provides a comprehensive curriculum that covers crucial topics like financial accounting, management accounting, taxation, and auditing, ensuring that you are well-equipped with the knowledge and practical skills needed in the finance industry. By enrolling with Unique Global Education, you gain access to expert guidance, personalized support, and the latest study resources that are tailored to enhance your learning experience. The flexibility of ACCA allows you to study at your own pace, making it easier to balance education with work and other commitments. With the global recognition of the ACCA qualification, you can unlock a wide range of career opportunities across various industries, from accounting and auditing to financial management and consulting. Choosing Unique Global Education for your ACCA journey ensures that you receive top-quality education, setting you up for long-term career success and advancement in the finance world.
Conclusion: ACCA vs FRM
Ultimately, the decision between ACCA vs FRM depends on your career aspirations. If you’re looking for a flexible, broad-based finance qualification with opportunities across various industries, ACCA is the way to go. However, if your interest lies in the more specialized field of financial risk management and you want to work within financial institutions focusing on risk, FRM might be the better fit. Both certifications offer solid career growth, so it’s crucial to align your choice with your passion and professional goals.
