In response to the increasing requirement to regularly re-calibrate client risk profiles, DFM has developed a short risk questionnaire tool that provides a rigorous scientific approach to validate client risk profiles. This risk tool has several unique features :
- It looks at the consistency of client responses to flag up any contradictions in the answers, or any ‘outliers’ which might indicate that the questionnaire has been completed incorrectly (or there has been a material change in the clients circumstances).
- It provides an audit trail to demonstrate that clients’ risk questionnaire responses are regularly checked and revalidated
- It gives an opportunity to contact the client to discuss the changes in their risk profile to ensure continued suitability of their investment portfolio
- It gives feedback to clients on the achievability of the objectives they have set, which will help them to set realistic goals and parameters. This will also help manage expectations on the returns clients can expect to achieve over time.
A key benefit of having the right risk profile for a client is that their expectations are managed and met, which results in increased levels of trust and overall satisfaction. This should lead to :
- more repeat business
- less client churn
- Increased ROI
- Reduced regulatory risk
Please contact us to discuss how we can help you develop and implement a risk questionnaire that is tailored to your business and client needs.