CFA vs PRM | What Should Be Your Career Move?
Last Update On 16th May 2024
Duration: 3 Mins Read
Chartered Financial Analysis (CFA) and Professional Risk Management (PRM) are the two most popular professions in finance. While Chartered Financial Analysis is a comprehensive and intensive course with multiple career options, Professional Risk Management (PRM) is a niche course with limited scope but tremendous growth who have a keen interest in this sphere. Just like CFA, PRM is also an internationally approved course that offers opportunities in more than a hundred countries. Both PRM and CFA are good career options, but to choose what’s the right course for you, you need to understand the difference between PRM and CFA in depth to make an informed decision.
Here are some of the common differentiating factors between CFA and PRM.
CFA vs FRM: Course details and future scope
| Differentiators | CFA | PRM |
| Organizing Body | CFA Institute | PRIM: Professional Risk Managers’ International Association |
| Course Duration | 2 to 3 years | 2 to 3 years |
| Difficulty Level (passing percentage) | CFA Level 1 22% – 49% | Overall pass rate: 65%.
Individual exams vary in the range of 59% to 78%. |
| Eligibility Criteria | If you are in the final year of graduation, you can appear for the CFA level 1 examination.Â
However, in certain cases, you may be eligible for CFA without graduation provided you have a minimum of 4 years of relevant work experience. |
Hold a current PRMIA Sustaining OR RIM level membership; And
have a completed graduate school degree (i.e., MBA, MSF, MQF, etc. OR be a current CFA Charterholder (see Cross-over Qualifications for details) |
| Career Scope | Job profiles you can explore
Hedge Fund Manager Investment Banker Portfolio Manager Corporate Analyst Financial Analyst |
Job profiles you can explore
Risk Officer Investment Risk Manager Predictive Analyst Risk Analyst |
| Top Hiring Firms | JP Morgan Chase
PayPal American Express Credit Suisse Wells Fargo |
PwC
ICBC JP Morgan Chase Consulting Firms Hedge Funds |
What is a Chartered Financial Analysis (CFA) course?
Chartered Financial Analysis is one of the most sought-after professions in finance. If your inclination lies toward investment management, you’re sure to master it efficiently by pursuing this course. However, let us inform you beforehand, that clearing the CFA course isn’t for the fainthearted. In the three CFA levels that you appear for, it’s not just your learning and skill level that will be tested but also your patience and consistency. Once you clear the CFA course and become a Charterholder, you are sure to be welcomed into this field with several exciting opportunities and attractive salary packages.
What is a Professional Risk Management (PRM) course?Â
As mentioned earlier, Professional Risk Management is an internationally recognized course, approved in almost 100 countries. This course is a step above the Financial Risk Management course. This designation is granted by the institution to candidates who have already completed their FRM course. The concepts taught in this course include risk management, risk measurement, option theory, financial instruments, trading markets, best practices, and historical risk-management failures. After completing this course you explore some exciting opportunities in the field of risk management.
Which course should you choose between PRM and CFA?
When it comes to intensive learning and diversity, CFA is far more vast as compared to PRM. PRM is a part of Financial Risk Management which is already a niche course with selective opportunities. CFA as a course trains a candidate in every aspect of investments. PRM on the other hand only prepares you for certain risk management opportunities. However, if that’s what you have a keen interest in pursuing Professional Risk Management is what you should be pursuing.Â
We hope that with this detailed article on PRM vs CFA, you’ve received some detailed information on which course to choose and what to expect. If you wish to pursue CFA with us or enquire about the range of professional courses that we offer then we suggest that click on the WhatsApp icon at the side of this blog and get in touch with our experts directly.
FAQs
1. Is FRM better than PRM?
In terms of scope and opportunities, FRM Is better than PRM. FRM is also considered to be more prestigious compared to PRM.
2. Is CFA or PRM better?
When it comes to intensive learning and diversity, CFA is far more vast as compared to PRM. PRM is a part of Financial Risk Management which is already a niche course with selective opportunities. CFA as a course trains a candidate in every aspect of investments.
3. Is CFA tougher than PRM?
Yes, CFA is tougher than PRM considering the duration, syllabus and passing percentages. The passing percentage of CFA level 1 ranges from 22% – 49%, while the overall passing percentage of PRM is 65%.
4. Is PRM equivalent to CFA?
Professional Risk Management (PRM) does have a demand in several corporate companies worldwide. However, Chartered Financial Analysis is far more popular and widely accepted.
