Next: Knowledge and experience

Risk profiling: the scientific approach

By clicking through the next few frames you'll discover how to use the Oxford Risk Rating to profile investors' preferences. We show how the preferences of three investors (one a couple) would be measured. By selecting one of the investors, their profile will be revealed.
How risk profiling works for three typical investors
Gillan Williams

During troubled times, can you afford not to offer the most relevant investments to your clients?


Author

Gillan Williams

Date

12th August 2016


As uncertainty increases, there is ever increasing pressure to offer robust investments to weather the storm

We all understand the importance of managing your customer’s portfolios and ensuring they perform within expectations, but how do you know you are offering the right products to achieve this?

It is easy to assume you are on track during the good times, but when there is increased instability, the wrong investments become obvious very quickly.

By being able to guide your customers through to financial stability, you will not only retain their repeat business, but also increase your referrals.

Poorly informed investments will have the opposite effect. If you are unable to offer stability when it is needed most, your recovery could take a lot longer than the market’s.

Fortunately, there is a solution. By taking advantage of our three step risk rating, you will have the information needed to ensure your customers are guided to the right products. We not only consider Risk Tolerance, but also Suitability and Risk Capacity.

Risk Capacity measures an investor’s capability to endure a poorly performing investment. By considering their ability to maintain their current lifestyle if the investment does not perform according to predictions, you can avoid a very negative situation with your client (and possibly with the regulator). By offering this level of responsibility, you are also demonstrating your professionalism and accountability.

To get in touch for more information and a free trial of our online profiling platform, click here

 

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