The Difference Between ACCA and FRM: Which Is Right For You?

Choosing the right certification to jump-start your career may feel like a high-stakes game. Should you go for the globally recognized ACCA or the risk management-centric FRM? Picking up a course that feels perfect for you may feel difficult but that’s what we are here for!

Of course, both courses offer exciting opportunities, but which ones align with your career aspirations? If you are confused in the debate between ACCA vs. FRM, then you are at the right place! Let’s break down the key differences and help you make an informed choice to set you up for success.

What is ACCA?

The full form of ACCA is Association of Chartered Certified Accountants – is an internationally recognized body in accounting that seeks to develop all-around finance professionals. Formed in 1904, ACCA has come to personify excellence in financial and management accountancy. With over 250,000 members across the world, the professionals possessing an ACCA qualification are well-equipped to handle financial challenges in industries ranging from manufacturing to service. 

ACCA Course Highlights

Global recognition: ACCA course is accepted in more than 180 countries, thereby providing members with mobility wherever goes and helping them to access international career opportunities more easily.

Comprehensive syllabus: The ACCA course covers a wide spectrum of subject matter, from financial accounting and business law to management accounting, taxation, auditing, financial reporting, and strategic management. This helps students achieve versatile positions in finance and accounting.

Varied job profiles: After having completed the course, an ACCA-trained professional has a large number of different kinds of jobs to make a career choice from-a financial analyst, auditor, forensic accountant, management accountant, financial controller, or tax adviser.

Flexibility: The most attractive thing about the ACCA course is its flexibility. First of all, it offers students the option to pursue part-time studies, allowing them to fit in studies with work and other commitments. It gives them exposure to practical experience while pursuing their certification.

Duration: The course, under regular conditions, would take about 2 to 3 years. This can vary depending on whether it is studied at a slower pace or whether you have been exempted from exams you already know of based on your previous qualifications.

What is FRM? 

FRM certification by the Global Association of Risk Professionals (GARP) is a pretty niche qualification dealing with risk management. If you have a thing for understanding and abating financial risk, this internationally recognized certification is going to be your getaway to working in almost all types of risk management roles for banks, hedge funds, and major corporations.

FRM Course Highlights

Focus on risk management: The FRM course specializes in managing risk and equips professionals with knowledge about financial risks that businesses and markets face. The certification is an in-depth certification targeted at people who are looking at making a career in the niche area of risk management.

It consists of two parts: FRM course Part I and FRM course Part II. The FRM course Part I majorly deals with foundational techniques and tools of risk management, focusing on the application of the foundational analysis to all the essential tools related to risk analysis, quantitative finance models, financial markets, and markets for various types of financial instruments. FRM course Part II extends this foundation and focuses more on practical risk management practices. Along with that it also covers topics like credit risk, investment risks, and market risks.

Duration: On average, students take 1 to 2 years to pass both parts of the exam. Thus, this relatively short time allows for quick entry into the job market.

Global demand: In any financial institution, risk management is a critical function. Therefore, there is a great demand for good FRM professionals all over the world. This certification is recognized by top-ranked banks, investment firms, and multinational corporations.

Job profiles: FRM-certified professionals will be employed as Risk Analysts, Risk Managers, Market Risk Managers, Credit Risk Managers, and Chief Risk Officers (CROs). They assume a core position for managing financial risk and ensuring that corporations remain stable during turbulent financial markets.

ACCA vs FRM

How Do You Decide Which is the Better Option – FRM or ACCA?

The choice between ACCA and FRM depends upon your professional goals and the line of finance or accounting in which you need to dwell.

ACCA course is the best if you seek a qualification, with opportunities in accounting, auditing, tax, and financial management. It is appropriate for professionals who can work with numbers and seek industry positions from around the world. Professionals who can easily transition into top-level executive and leadership positions as, for example, a Chief Financial Officer or Finance Director. The flexibility of ACCA together with its global recognition makes it an exceptional choice for someone seeking a wide finance and accounting career.

FRM is the place if you want to be interested in risk management and, more importantly, work under high stakes, with the need for real understanding and mitigation of financial risks. FRM certification makes you stand in a queue for specialized positions within banks, financial institutions, and hedge funds. As risk management is increasingly gaining importance, the demand for FRM-certified professionals will continue to grow, so you can do well in this focused profession if you’re interested in this niche area.

Zell Education: Why You Should Study ACCA

Zell Education is a top-notch ACCA coaching centre with experienced faculty members, personalized study plans, and global placement support. This flexible learning, fully equipped with good quality study material, helps students gain near-perfect pass rates, making Zell Education a sought-after institution among many aspiring ACCA professionals. Students from Zell Education are well-equipped to get a job after finishing their ACCA certification.

Conclusion

Both ACCA and FRM differ in their benefits and cater to different career options. ACCA is a more general accountancy and finance qualification that opens a plethora of career opportunities for you, whereas FRM is specifically related to risk management. The choice between them depends on your professional goals and the area of finance that interests you most.

FAQs on ACCA and FRM:

Is it possible to pursue both FRM and ACCA?

Yes, you can do ACCA and FRM, which can add to your expertise in accounting and risk management.

Is FRM good after ACCA?

Yes, FRM after ACCA adds specialized risk management skills to your accounting expertise and thus makes you quite versatile in the finance industry.

FRM vs ACCA: Which is better?

Between FRM and ACCA, the one that is better for you depends on your career goals and interests. But one thing to remember is that ACCA provides more diversified career opportunities while FRM is focused only on risk management. 

Is ACCA and FRM a good combination?

Yes, the combination of ACCA and FRM is good for understanding finance and risks and, therefore, increases your employability across various sectors.

Is FRM a good finance certification?

Yes, FRM is a highly respected finance certification, especially among those targeting the financial risk management sector.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.