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ASSESSING RISK

Understanding how your client feels about investment risk and managing their expectations can be key to them maintaining long-term confidence in the solutions you’ve put in place.

USE OUR APP

It allows you to complete the risk profiling questionnaire, get the risk score and then discuss with your client what that risk score means, during a single meeting.

The agreed risk level can then be emailed back to your office for use with Old Mutual Wealth’s online investment tools.

Download the app now.

 

 

Risk assessment app

A PDF is generated at the end which you can save or share.

USE OUR PORTFOLIO EXPLORER TOOL

The risk discussion tool shows implied volatility and potential annual returns* for the different risk levels, highlighting what the rating means in monetary terms.

COMPLETE A RISK PROFILE QUESTIONNAIRE (RPQ)

Our investment and retirement risk profile questionnaire forms are developed in conjunction with Willis Towers Watson.

INPUT THE ANSWERS INTO OUR RISK PROFILER TOOL

Use our risk profiler tool (available on our platform system) to translate your client’s RPQ answers into a risk level ranging from 1 to 10.

*The figures generated by the tool are not intended to be, and should not be taken as, a projection of the likely returns.

COMPLIANT AND ROBUST RISK ASSESSMENT

The FCA advises against unduly focusing on just the investment risk a client is willing to take while failing to take account of other possible needs and objectives, such as repaying debt and accessing capital. A client’s attitude to risk is also likely to vary depending on their financial goals and the timescale of the investment.

Our process is designed to be flexible around these issues, with the client’s risk score providing a starting point for a more in-depth discussion about their willingness and capacity to accept possible loss, rather than being a definitive and final risk rating.

Once a risk score has been established and agreed with your client, a portfolio can be built with an asset allocation which is optimised for that particular level of risk.

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