Fraser Donaldson: Six simple rules for working with risk tools

An unprecedented amount of column inches is being written about matching a client's attitude to risk and capacity for loss to an appropriate investment risk rating.  The more that is written, of course, the easier it becomes to forget what you are trying to achieve in the first place - and there also seems to be plenty of negative opinion on just about every possible solution. So, let's go back to basics. There are two sides to the equation here - first, and most importantly, the client. There are essentially two types of client - those who understand and are prepared to take some ris...