Risk profiling: what are the options?

In the past few years there has been a trend among financial advisers away from in-house investment selection towards using outsourced risk-targeted funds in model portfolios to satisfy clients' asset allocation and investment needs. A recent survey by NMG Consulting showed that advisers are using a range of methods to determine the asset allocation of client portfolios. This includes a self-styled manual approach, in-house developed tools, off the shelf risk profiling tools, product provider and platform portfolio tools and customer fact-finds. Which method is the best option for you...