Risk profiling and beyond

Just trying to get an idea of different approaches to risk profiling. Does anyone here use a questionnaire that incorporates more than tolerance questions? Ie what are approaches to recording capacity and preferred investment style?


  • richallumrichallum Administrator
    Not a direct answer but the online Howwow in October will be all about risk with Rory Percival and the main Powwow in Sept has a session planned on risk profiling.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • Like the sound of that session Richard. 

    We use Dynamic Planner, they have investor experience, attitude to risk and capacity for loss elements built into their questionnaire.  You then have three potential ways of capturing the initial analysis:

    1) Client invite link, allows the client to complete online in their own time. 

    2) Via an iPad app that can be completed during the client meeting.

    3) Old skool via paper and then input into the system.

    This is the starting point to give the adviser an idea of the client experience, attitude to risk and capacity for loss.  The most important bit comes next, the discussion with the client and ensuring this is documented fully. 

    Seems to work well for us generally although not perfect.  There are lots of other tools/methods out there so it's worth exploring a good few options/systems and giving them a good try before you buy. 

    The Howwow in October sounds like it will help a lot with this. 

  • Thanks guys.
  • I'm looking forward to Rory's analysis of the different tools available as I don't think much to them! We use FinaMetrica and an in-house questionnaire that includes capacity for loss questions and more soft questions about the client's expectations and objectives for investment. We are also considering including an ethical section in this also.....
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