Chris Jones: Managing great expectations

Risk-profiling tools

clock • 5 min read

Risk-profiling tools are there to enable good conversations not replace them, writes Chris Jones - and the most appropriate tool is one that does that job best

A turbulent October reminded us all too well that the main purpose of risk profiling in the investment process is to manage a client's expectations through engagement and understanding. Regulation requires an assessment of a client's attitude to risk (risk profile) and most firms will have risk-profiling and a specific tool defined in their advice process. It is understandable that, over the last 10 years, it could have been easy to see this process as merely another compliance box to tick - yet it is far more than this.  In a modern world, the regulator, manufacturer and financial pl...

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