FinaMetrica calls for global 'lexicon of financial risk'

Looking to create a common risk language

clock • 2 min read

FinaMetrica has laid out terms for a common risk lexicon to be adopted by the industry to help consumers understand risk and prevent "negative investment surprises".

In a new report, the firm set out a range of terms associated with investor risk tolerance and the wider concept of investment risk, to be used as a starting point for further discussion. FinaMetrica said it wants to encourage representatives from businesses across financial services to form a working group to turn the initial concept of risk language into a practical toolkit for the industry. Co-founder and director Paul Resnik said: "FinaMetrica has argued for a long time now that a sound understanding of clients' risk tolerance can help discourage portfolio churn and, ultimately ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read