Risk Capacity, API and new staff
2nd July 2018
New developments at Oxford Risk have substantially improved investor risk profiling, including the world's first dynamic risk capacity engine, whilst remaining familiar to existing customers.
Investor Profiling – setting new standards
Investor profiling can and should enhance quality of service and client engagement, turning a compliance requirement into a business benefit.
At the start of the year we conducted a large-scale research and data analysis exercise. Our investor profiling tool is now able to measure ten behavioural aspects of financial personality (such as composure, impulsivity, and others) in addition to pure risk tolerance. These additional investor insights enable individually targeted communication and deepen client engagement.
Deeper insight into client preferences enables your advisers to demonstrate deeper client understanding, guide portfolio construction, and adjust communication to better manage clients’ investment behaviour (e.g. selling low in a market downturn). The new scales are available now, as are new, shorter risk tolerance assessments.
Risk capacity and full suitability
Robust suitability requires understanding not only clients’ risk tolerance, but also their risk capacity. Risk capacity often has a substantially greater effect on the right level of investment risk than risk tolerance – as recently highlighted by the FCA in the context of digital advice – but is too often handled inconsistently.
Oxford Risk has now developed the world’s first dynamic risk capacity engine that can calculate the appropriate, adjusted risk profile taking into account clients’ financial situation, goals, and time horizon … alongside risk tolerance. Our streamlined tool seamlessly adjusts for simplified vs full advice, as well enabling a seamless transition from accumulation to decumulation.
The result: Your advisers unambiguously know what risk range is appropriate for the funds under advisement without having to make subjective adjustments requiring significant justification and audit trail.
The new risk capacity engine is currently being tested with a small number of firms. It will be launched as part of a new, flagship product suite in Q3 of this year.
Our tools are now available via API, improving delivery and integration into existing client systems and 3rd party software platforms. As a result our tools can be embedded in digital workflows to increase operational efficiency as well as client facing portals.
Seamless digital integration has significant advantages in terms of your operating efficiency and cost, and also enables you to link our tools directly into investor facing portals.
For more information on our new products and software integration options, please contact Nick Charnley on 020 3941 2801 or email firstname.lastname@example.org.
We moved offices to London at the start of March in order to stay closer to our clients and the industry, both domestic and international. Our new address is:
1 Paris Garden
London SW1 8ND
Telephone: +44 203 9412801
We will soon be updating our website to provide much richer content on new products, white papers and insights on how behavioural finance can improve your proposition and client engagement.
In a new addition to the team, Khrystyna Mydza has joined as Customer Success Manager, and will be the central point of contact for existing client enquiries and account support. You can reach her on 020 3941 2810 or email email@example.com (or direct at firstname.lastname@example.org).