Why is the CFM Important to a Finance Major?
By Jim Rigos, CMA, CFM, CPA, J.D., LL.M.

Traditionally, finance majors went to work for financial services institutions such as brokerage and security firms, venture capital companies, and banks. (When I was in college my advisor told me a job at a bank represented the ultimate in job security but that they did not pay much. She was at least half right). The traditional credential for such a role is the Certified Financial Analysts (CFA). Two things have occurred to change this traditional role of the finance major.

First, there has been a substantial integration in the financial services market. This has created much more competition and no one institution or credential enjoys a monopoly. Further many institutions can no longer afford to retain mid-level managers and new hiring is soft. It would be naive to assume the future has more security because rapid change begets rapid change.

Second, and partially because of this, many finance majors are going to work for businesses. The work areas here include such functions as cash management, ratio analysis, ROI measurement, portfolio decisions, risk analysis, security offerings, SEC rules, IPOs, and financial planning. Most of these involve working with the firm's accounting information and all of them involve interfacing with the firm's accountants. Many feel a need to understand the language of accounting to complement their finance knowledge base.

This changing environment facing a finance major's career possibilities suggests that a "2 for 1" credential program is now desirable. While it is prudent to earn a CFA it is also prudent to earn a CFM. Having both credentials will provide the finance major with solid evidence of expertise wherever your professional career might take you.

Source: Rigos CFM Review, www.rigos.net.