An Intelligent Approach to Risk
Why multiple scores?
1
Risk Capacity
This quantitative figure describes the amount of risk an investor can or cannot afford to take based on the details of their personal life circumstances.
2
Risk Preference
Most risk questionnaires hone in on this behavioral figure, which expresses the level of risk an investor is willing to take (and can change quite often).
3
Portfolio Risk
A calculation of an investment portfolio’s exposure to potential risk. This figure describes a portfolio’s expected % Value at Risk (VaR). Mathematically it tells us where 1% outlier/tail events could begin to occur to the downside.
Why TIFIN Risk?
A Client-Friendly Experience
- With less than 20 short questions, your clients will complete the survey in just a few minutes
- Convert prospects faster by showing how their current portfolio is not within their Risk Band
- Retain more clients by offering a relatable questionnaire
- Use prospecting links on your website, newsletter, or email signature
- Create custom proposals within the easy-to-use platform
A Risk Tolerance Questionnaire Designed for Suitability
- Our multi-dimensional questionnaire was designed to assist with Regulation Best Interest and other compliance needs
- Access automatic time stamp and archiving of risk tolerance questionnaires and scores
- Our quantitative testing methodologies were built by leading experts in the financial industry
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Risk tolerance is an investor’s general ability to withstand risk inherent in investing. The risk tolerance questionnaire is designed to determine your risk tolerance and is judged based on three factors: time horizon, long-term goals and expectations, and short-term risk attitudes. The adviser uses their own experience and subjective evaluation of your answers to help determine your risk tolerance.
There is no guarantee that the risk assessment questionnaire will accurately assess your tolerance to risk. In addition, although the advisor may have directly or indirectly used the results of this questionnaire to determine a suggested asset allocation, there is no guarantee that the asset mix appropriately reflects your ability to withstand investment risk.
