Risk profiling and beyond
HughJ
Member
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?
Comments
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern.
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.