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FRM vs MBA

Last Updated On -08 Feb 2025

In today's competitive environment, finance professionals frequently have to choose between an FRM and vs MBA. In other words, they always wonder whether they should go for a Master's in Business Administration or think about becoming a Financial Risk Manager. Both options provide advantages and career routes that are distinct from one another, but choosing well requires knowing the subtle differences between them.

To assist you in successfully navigating your professional objectives, let's examine the nuances of each option.

What is FRM?

FRM course or Financial Risk Manager is a globally recognized certification awarded by the body of the Global Association Of Risk Professionals (GARP) based in the USA. This qualification equips one with the expertise in managing financial risks across various financial industries and institutions. When the thought of pursuing this credential occurs, candidates often wonder about the course details that FRM entails. Through this blog, we aim to help you understand the FRM course duration, factors influencing FRM course duration, FRM’s course structure, examination pattern, eligibility criteria, and various career prospects as all these will help you plan your path to obtaining the FRM credential seamlessly.

What is an MBA in Finance?

An MBA in Finance is an advanced degree program in which the core aspects are financial management, investment analysis, and strategic planning. This kind of degree equips the student with capacities for jobs like financial analysis, investment banking, and corporate finance and offers various expert prospects within financial-related fields. Studying for an MBA in finance opens a lot of career opportunities in the field of finance. Still, to reach the top in this field, it's important to develop a consistent scope of abilities.

Difference between MBA and FRM

While both the courses are reputable and well sought after, certain things necessitate an FRM vs MBA conversation.

Here is a table stating the difference between MBA and FRM:

FRM	MBA
Finishes in 1-2 years with two parts of examination.	Takes two years to complete but some programs require work experience before applying.
Deals with subjects like fundamentals of risk management, qualitative analysis, financial markets, statistics, and mathematical foundations.	More electives are available with topics on human resources management, marketing, or strategy.
Undergraduates in their last year can apply.	Minimum qualification is a bachelor's degree.
Requires minimum percentage of 45% for Part 1 and 63% for Part 2 examination.	Must have a percentage of min 50% for admission.

What is the Salary of FRM and MBA in India?

FRM and MBA salaries depend on several factors which are common, such as level of experience, which is very important. A fresher will ideally get less salary than a senior for the position, the candidates need to work and then get relevant experience to get a lucrative paycheck.

FRM Salary in India

The FRM salary in India is typically after a degree employees take home an amount between 6 and 12 lakhs INR annually at entry-level positions.
Middle-level FRMs may earn an average of 12 to 20 lakh rupees per year.
Specialized roles within senior-level FRMs attract a salary exceeding 20 lakh rupees per year, whereas other ordinary positions receive only this much.

MBA Salary in India

Business Development Specialist: INR 6.3 LPA
Human Resource Manager: INR 7.02 LPA
Sales Manager: INR 4.33 LPA
Customer Relationship Management: INR 6.77 LPA
Marketing Manager: INR 7.01 LPA

How to choose between an FRM and an MBA Course?

Both courses offer a lot of value and potential to your career, however choosing between FRM and MBA requires paying attention to a lot of other things, especially the interest and the path of career to be chosen ahead.

Let us look at the key considerations while choosing between FRM and MBA:

Your hobbies and work goals will determine which degree program is best for you, a Master of Business Administration (MBA) or a Financial Risk Manager (FRM).

The FRM would be more appropriate if your goal is to become an expert in risk management for the finance sector. It provides specific expertise in risk analysis and management, especially in the financial, insurance, and investment fields.

If, however, your goal is to acquire more general business knowledge and transferable abilities that can be used in a variety of businesses, an MBA may be best. With its comprehensive coverage of business subjects including operations, marketing, finance, and strategy, it provides students with a well-rounded education that can lead to a variety of employment options.

When making your choice, take your desired industry, your desired career path, and your desired skill set into account.

Conclusion

In conclusion, professionals in the finance industry can benefit greatly from having an MBA or FRM. The MBA offers a more comprehensive business education, whereas the FRM concentrates primarily on risk management. The decision between the two is based on personal preferences, professional aspirations, and needed skill set expansions. In the end, people should evaluate their professional goals to ascertain which degree best fits their goals and advancement in their field.

Frequently Asked Questions ( FAQs )

How do an MBA and FRM differ from one another?

While an MBA (Master of Business Administration) offers a more comprehensive grasp of business management across multiple industries, an FRM (Financial Risk Manager) certification concentrates particularly on risk management within the financial industry.

Which one is more suited for a financial career?

The FRM is more focused on risk management, which makes it the best option for individuals who are interested in risk analysis, portfolio management, and financial regulation. However, both the MBA and the FRM can lead to prosperous careers in finance.

How does an MBA differ from an FRM certification?

An MBA, or Master of Business Administration, is a graduate degree that provides a broad understanding of various business disciplines such as finance, marketing, operations, and management. On the other hand, FRM, or Financial Risk Manager, is a professional certification focused specifically on risk management within the financial industry.

Which career paths are typically associated with an MBA versus an FRM certification?

An MBA opens doors to a wide range of career opportunities in fields such as consulting, investment banking, entrepreneurship, marketing, and general management. FRM certification, however, is more specialized and often leads to careers in risk management, financial analysis, regulatory compliance, and portfolio management within banks, investment firms, and other financial institutions.

What are the key skills and knowledge areas covered in an MBA program compared to FRM certification?

An MBA curriculum typically covers a broad spectrum of business skills, including finance, marketing, strategy, operations, leadership, and entrepreneurship. In contrast, FRM certification focuses specifically on risk management concepts, techniques, and practices, including topics such as market risk, credit risk, operational risk, and risk modeling.

How do the time and cost commitments differ between pursuing an MBA and obtaining an FRM certification?

Pursuing an MBA usually requires a significant time commitment of one to two years of full-time study, and the cost can vary widely depending on the program and institution. FRM certification, on the other hand, typically involves self-study or preparation courses over several months, followed by passing two rigorous exams. The cost of FRM preparation materials and exam fees is generally lower compared to an MBA program.

In terms of career advancement and earning potential, which option—MBA or FRM certification—provides a better return on investment?

Both an MBA and an FRM certification can enhance career prospects and earning potential within the financial industry. An MBA offers a broader skill set and may lead to leadership roles in various sectors, while an FRM certification demonstrates specialized expertise in risk management, which is increasingly valued in financial institutions. Ultimately, the choice depends on individual career goals, interests, and the specific demands of the job market.