Saddle up for a quick lesson in risk

Is risk profiling an art or a science?

clock • 4 min read

Edward Kennedy takes us on a leisurely cycle through the world of risk profiling and explains why providers must keep evolving...

Is risk profiling an art or a science? I strongly suspect it qualifies as both. It's essentially quantitative, but it also entails a fair amount of subjective judgement. I guess what really matters is that it works.  It's interesting to reflect on what risk profiling's principal purpose actually is. We all appreciate the general idea is to identify investment solutions suitable for each client's specific needs and preferences, but how might we neatly sum up the raison d'être of such efforts?  One suggestion is this: the principal purpose of risk profiling is to encourage good investme...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on DFM & Model Portfolios

Why the FCA is digging into co-manufacturing

Why the FCA is digging into co-manufacturing

Ben Peele explores the 'uncomfortable truth' that sits at the centre of the co-manufacturing debate...

Ben Peele
clock 26 June 2026 • 4 min read
Bamboo Invest launches sustainable MPS range

Bamboo Invest launches sustainable MPS range

Three tech-backed sustainable portfolio ranges

Jenna Brown
clock 24 June 2026 • 2 min read
Traditional MPS limits on CGT and operations now in FCA focus

Traditional MPS limits on CGT and operations now in FCA focus

PortfolioMetrix’s Ben Peele on adviser co-manufacturing and blurred MPS responsibilities

Isabel Baxter
clock 19 June 2026 • 1 min read