Psychometric risk profiling de-mystified

Indeed, most of us who have been in the industry some time can remember situations along these lines: we carefully explain risk to clients at the time of recommendation, and some years later, usually after a market fall, the same client who insisted on that medium risk fund is suddenly upset that they were not recommended something more cautious. Ultimately, nothing can prevent this situation from occurring from time to time. However, advisers large and small have turned to more sophisticated methods of assessing client attitudes to risk to reduce the possibility of it happening. Thes...