Risk profiler
Get a definitive understanding of your client’s tolerance for investment risk with our risk profiler tool.
Looking for something? Browse our Knowledge Hub by popular topics, resources and insights
Looking for something? Browse our Knowledge Hub by popular topics, resources and insights
Looking for something? Browse our Knowledge Hub by popular topics, resources and insights
Balancing risk and reward
Our risk profiler tool enables you to work with each of your clients to make sure their investments fall within their tolerance for risk. That’s great for portfolio planning as well as transparency and compliance obligations. Here’s how it works.
Risk assessment questionnaire
Your client will provide answers to twelve questions covering the amount they want to invest, their desired outcomes and their tolerance for risk.
Personalised risk score
Each of your client’s answers from the risk assessment will be assigned a score of between 0 and 100. We have created an algorithm that captures the importance weighting of each question – based on how important it is to your client – and maps this against the normal distribution of responses found in the population. Then we crunch the numbers to assign a personalised risk score of between 1 and 10. 1 reflects the most risk averse investors; 10 indicates the greatest appetite for risk.
Report
The risk profiler will create a report that contains a record of your client’s risk assessment answers, their personalised risk score and an explanation of what that score means for future investments. You can also add your own commentary. And there’s a declaration for your client to sign. This report can be stored within the Novia Global platform and shared with your client as a PDF.
Certified for excellence
compliance and security.
