This presentation will provide attendees with a comprehensive definition of an individual investor’s financial risk profile, incorporating both objective and behavioral attributes that reflect the interdependence of investors’ underlying attitudes and capacity for risk that are based on ability, need, and tolerance. The presentation will help attendees better understand how client financial risk profiles can (and should) be used in the financial planning and investment management process. Specific strategies will be presented to help financial advisers understand when a risk profile score should be supplemented with additional assessments, and if additional client work is needed, what those steps should be.
Determine how financial advisers utilize the outcomes of various risk profiling tools, objective factors, and professional judgement to arrive at an investment portfolio recommendation that is in the best interest of a client.
Describe how a client can be assured that her or his adviser's recommendation is in appropriate.
Document how a regulator can be assured that a financial adviser's recommendation is in the client’s best interest.