Who awards each credential?
- CFA (Chartered Financial Analyst) is awarded by CFA Institute.
- FRM (Financial Risk Manager) is awarded by GARP, the Global Association of Risk Professionals.
Each body sets and grades its own exams and decides who may use its title. Neither credential is a university degree.
How do the exams compare?
| CFA Program | FRM | |
|---|---|---|
| Number of exams | Three (Level I, II, III) | Two (Part I, Part II) |
| Question types | Multiple choice at Level I; item sets at Level II; item sets and essays at Level III | Multiple choice: Part I has 100 questions, Part II has 80 |
| Study time quoted by the awarding body | Over 300 hours per level | Around 240 hours of study, over several months |
| Work experience to use the title | 4,000 hours over at least 36 months, in or informing investment decisions | At least two years of relevant work experience |
| Focus | Investment analysis and portfolio management across asset classes | Measuring and managing market, credit, operational and liquidity risk |
Sources: CFA Institute's exam and program pages, and GARP's FRM page, both read on 19 October 2026.
What does each one cover?
The CFA Program covers ethics, quantitative methods, economics, financial statement analysis, corporate finance, equities, fixed income, derivatives, alternative investments and portfolio construction, then at Level III asset allocation and a pathway in portfolio management, private markets or private wealth.
The FRM is narrower and deeper on risk. GARP lists Part I as foundations of risk management, quantitative analysis, financial markets and products, and valuation and risk models. Part II covers market risk, credit risk, operational risk and resilience, liquidity and treasury risk, risk management and investment management, and current issues in financial markets.
There is real overlap in the quantitative and fixed-income material, and some candidates take both.
Which one suits which career?
Pick the CFA if you see yourself in:
- equity or credit research;
- portfolio management at an asset manager, pension fund or insurer;
- wealth management or investment consulting.
Pick the FRM if you see yourself in:
- market, credit or operational risk at a bank or asset manager;
- risk modelling, model validation or treasury risk;
- regulatory or supervisory roles focused on risk.
If you are unsure, the CFA keeps more doors open in investment management; the FRM is the more direct signal for risk teams.
Which is harder?
They are hard in different ways. The CFA is longer: three exams, a written component at Level III, and roughly three to four years end to end by CFA Institute's estimate. The FRM is shorter but denser in quantitative risk methods. CFA Institute's ten-year pass rates for 2017 to 2026 are 40%, 45% and 50% for the three levels; see CFA pass rates. For FRM pass rates, check GARP's own announcements.
Can you do both?
Yes. Some risk professionals add the FRM after the CFA, or the other way round, because the two complement each other. Doing both at once is a heavy load; most people finish one before starting the other.
To see where you would start on the CFA side, read CFA Level I explained or try the free 30-question mini mock.
Frequently asked questions
Is the FRM easier than the CFA?
It is shorter: two exams against three, and GARP cites around 240 hours of study against CFA Institute's over 300 hours per level. It is not simply easier, because the FRM goes deeper into quantitative risk methods.
Do I need work experience for the FRM?
GARP requires evidence of at least two years of relevant work experience to earn the FRM certification after passing both exams.
Which is better for a risk management career, CFA or FRM?
For a career centred on risk management, the FRM is the more targeted credential. The CFA is broader and suits investment research and portfolio management.
Can I take the CFA and FRM at the same time?
You can register for both, but each needs hundreds of study hours. Most candidates finish one before starting the other.
Sources
- GARP: Financial Risk Manager (FRM) certification
- CFA Institute: CFA Program exam information
- CFA Institute: CFA Program overview
- CFA Institute: CFA Program Level I exam
- CFA Institute: CFA exam results 1963-2026 (PDF)
Figures that change by year were read from these pages on 26 October 2026. Fees, dates and rules can change: check the source before you register.
FRM® is a trademark of the Global Association of Risk Professionals (GARP). EduFite is not affiliated with GARP.