As an important component in assessing a client’s suitability, risk profiling is a process that any advisor is well versed in. In order to proceed with a client, they need to have an accurate assessment of their investment behavior. However, presenting this information in a user-friendly and accessible manner can be difficult.
Risk profiling can often be seen as time-consuming due to the numerous repetitive questions that a client must answer. Through gamification, Privé addresses this with our fun, interactive and unique approach that ensures clients can easily understand the questions being asked of them, whilst being thoroughly engaged.
Whether that means including glossaries, explanations, and intuitive questions, Privé’s risk profiling module can increase the clients confidence in investing and provide key insights into their ideal portfolio.
Get to know some of our key functionalities with our Risk Profiling Manager, Sudha Thallam!
- Are the questions for risk profiling standard or can they be fully configured?
All questions included in the risk profiling are fully configurable. Both the type and sequence of questions can be individually customized according to your organization’s needs. For those who do not need such in-depth customization, Privé also provides a standard set of questions that is ready to go.
- What types of questions are available?
While the content of the questions is fully configurable, Privé also offers user interface customization options, such as questions that leverage gamification to make the process more stimulating and interactive. This includes questions that include image interactions, sliders, multiple-choice answers, as well as other user-input designations.
- Can sustainability/ESG options be included in the questionnaire?
Of course! It is possible to allow users to, as part of the risk assessment, select their investment preferences. Our ESG options are compliant with EU regulatory requirements, such as the EU’S Taxonomy Regulation (2020/852) and Disclosure Regulation (2019/2088).
- How does the scoring logic work and can it be customized?
Questions in the risk profiling questionnaire can be assigned a score, with the exact value for each question being fully configurable. The scoring logic is therefore the summation of each individual score.
- Can different risk score metrics be applied (1 to 5, 1 to 10, SRRI)?
Yes, different risk score metrics are available, depending on your requirements. Metrics such as the risk score (e.g 1 to 5), SRRI (1 to 7), or other measures such as a target volatility can be applied to the risk profile.
- How do I know if the risk profile has expired?
Users are informed of the date of expiry upon completing the risk assessment. Once the risk profile expires, the user is then prompted to retake the assessment and updates their risk profile accordingly.
- Can past risk profiles be accessed?
Yes, users can view the complete history of all risk assessments taken in the past, including the specific answers to questions and risk score.
- Can the risk profile be integrated with other Privé modules?
Of course! The risk profile is able to integrate with almost all of Privé’s modules, including Ordering, the Portfolio Proposal tool, Wealth Planning and in Model Portfolios. This allows for a consistent approach to a client’s investment experience throughout the entire process.
- How is the risk score explained to the client?
The risk score is explained to the user by categorizing them into fully configurable risk profile types based on their answers to the questionnaire. Examples of risk profile types include ‘Risk-Tolerant’ and ‘Risk-Averse’. Each profile type comes with a description and explanation of their displayed behavior and investment mindset.