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 ...

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