How much risk is too much for your clients to take?

Assessing client attitude to risk is not a straightforward process. In a sample group of about 30 advisers at the annual Personal Finance Society Conference last week, most said they consider at least four benchmarks before reaching a decision; what the FOS and FSA say is too much; what the client feels is too much; what is more than the client needs to achieve their goals; and what the adviser thinks is too much. In addition, the FSA states a client's willingness to bear risk must be judged in light of their capacity for risk - what it terms capacity for loss. Statistics Psychomet...