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News, Papers & Articles

Setting the table for risk tolerance

Saturday, 25 March 2017

Last week, we started to discuss investment risk and how to manage that risk.

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Steven Merrell, Financial Planning: Are your investments too risky?

Wednesday, 22 March 2017

How do I know if my investments are too risky and how can I protect myself?

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Thinking Millennial: How to Woo the Largest Generation

Monday, 27 February 2017

The first in a series on understanding the generations and what they want and need from you

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Profitability pains: Robo-advice market stalls plans over financial fears

Friday, 03 February 2017

The profitability of robo-advice has been called into question as some banks and providers appear to be stalling on the development of their propositions.

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Do you have the stomach to lose it all? Take this risk test

Friday, 20 January 2017

In uncertain markets, how much investment risk can you really stomach?

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What Is Your Risk Tolerance?

Friday, 23 December 2016
Categories: Investments, News, Risk Profiling, Technology

A sampling of questions used to determine your willingness to suffer investment losses.

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FE installs FinaMetrica’s risk-profiling tool

Thursday, 24 November 2016
Categories: Investments, News, Risk Profiling, Technology

Software provider Financial Express has added FinaMetrica’s risk-profiling technology to its service to help advisers see if an investment portfolio fits with a client’s risk comfort zone.

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FinaMetrica teams up with FE to offer advisers new module

Thursday, 24 November 2016
Categories: Investments, News, Risk Profiling, Technology

Financial Express is to implement FinaMetrica’s risk tolerance score technology, it was announced this morning.

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The new software taking on the automated advice market

Thursday, 24 November 2016
Categories: Investments, News, Risk Profiling, Technology

This year has seen an increase in collaboration between regulators across the world. Those in Australia, Singapore and the UK have each established co-operation deals, in particular around their respective approach to financial technology.

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Financial Express (FE) Integrates FinaMetrica

Thursday, 24 November 2016
Categories: AUS Press Release, Investments, News, Risk Profiling, Technology, UK Press Release

FinaMetrica's tools will help advisors make 'apples-to-apples' comparisons between risk tolerance scores and investment risk, after an integration with Financial Express (FE). FinaMetrica's risk mapping methodology and tools are used by investment managers and advisors around the world.

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Gen III robo-adviser to solve ‘shortcomings in existing offerings’

Friday, 04 November 2016
Categories: Investments, News, Risk Profiling, Technology

An Australian risk profiling firm and a US based financial services software provider have teamed up to launch a Generation III robo-adviser tool that aims to address “shortcomings in existing offerings”.

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PlanPlus Inc. launches miPlanPlus - a major breakthrough in online advice

Friday, 04 November 2016
Categories: Investments, News, Risk Profiling, Technology, US Press Release

We are excited to be part of the new 'generation 3.0' miPlanPlus white-label robo advisor, which is launching at the T3 conference in Las Vegas. miPlanPlus is a 'smarter' robo that can consider multiple data points and give comprehensive financial advice. FinaMetrica is proud to have been chosen as the primary risk tolerance assessment tool within miPlanPlus.

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How fintech aims to make DOL fiduciary rule manageable

Wednesday, 26 October 2016
Categories: Advice, Investments, News, Risk Profiling

Wealth of tools popping up to help with compliance, but will require proper adviser due diligence

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RiXtrema Launches IRAFiduciaryOptimizer Software

Friday, 21 October 2016
Categories: Advice, Investments, News, Risk Profiling

RiXtrema, a company that provides risk management tools and analysis to the financial advisory and broker/dealer community to help ensure that clients get the analysis and advice they need, today announced the launch of its IRAFiduciaryOptimizer tool to help financial advisors document clients' best interests and ensure compliant rollover

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FinaMetrica Debuts Financial Risk Lexicon

Wednesday, 12 October 2016
Categories: Advice, Investments, News, Risk Profiling

FINalternatives covers FinaMetrica's call for a global risk leixcon.

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FinaMetrica calls for global 'lexicon of financial risk'

Wednesday, 12 October 2016
Categories: Advice, Investments, News, Risk Profiling

Professional Adviser: FinaMetrica has laid out terms for a common risk lexicon to be adopted by the industry to help consumers understand risk and prevent "negative investment surprises".

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FinaMetrica calls for global 'lexicon of financial risk'

Monday, 10 October 2016
Categories: Advice, Investments, News, Risk Profiling

FinaMetrica has laid out terms for a common risk lexicon to be adopted by the industry to help consumers understand risk and prevent "negative investment surprises".

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Does Your Risk Tolerance Change Over Time?

Wednesday, 05 October 2016
Categories: Advice, Investments, News, Risk Profiling

What’s your likely response to a sudden 10% drop in the value of an investment? Would you sell all or some of your shares? Do nothing? Would you ever consider buying more?Your answers to questions like these could provide important insights into your true risk tolerance, says Rob Williams, director of income planning at the Schwab Center for Financial Research.

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How To Test Your Clients' Risk Tolerance

Thursday, 29 September 2016
Categories: Advice, Investments, News, Risk Profiling

How advisers can ask the right questions to best ascertain a client’s risk tolerance.

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The Intertemporal Persistence of Risk Tolerance Scores

Monday, 19 September 2016
Categories: Advice, AUS Press Release, Investments, News, Risk Profiling

How persistent is financial risk tolerance across time? Using a unique international panel dataset, this Journal of Financial Planning paper documents the persistence of risk tolerance test scores over time.

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Moving Toward a Consistent Language of Risk

Monday, 19 September 2016
Categories: Advice, Investments, News, Risk Profiling, White Paper

If you're working with money and investments you regularly talk or write about risk? The language of risk has always been slippery. Ambiguity leads to uncertainly and undermines confidence. So we've gone back to basics to define 79 risk terms. It's been written to help bring a little more consistency to your communication.

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The Sorry State Of Risk Tolerance Questionnaires

Monday, 19 September 2016
Categories: News, Risk Profiling

The requirement that a financial advisor must “Know Your Client”, including his/her tolerance for taking risks, is a universal requirement amongst investment regulators around the world. Yet a recent survey of the global landscape for best practices in risk profiling by Canadian financial planning software provider PlanPlus reveals a disturbing lack of quality risk tolerance questionnaires and support tools for financial advisors.

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ASIC robo guidance not adequate

Friday, 02 September 2016
Categories: News, Risk Profiling

The corporate regulator's guidance on digital advice does not address any useful detail about standards for robo-advice, Money Management reports.

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ASIC's Robo adviser standards too low

Friday, 02 September 2016
Categories: Advice, AUS Press Release, Investments, News, Risk Profiling

Australian robo advisers must reach beyond the limited scope of recently published ASIC RG255 guidance on digital advice.

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Behavioral Finance is no Panacea for Advisors

Friday, 12 August 2016
Categories: News, Risk Profiling

This is part three of a three-part series on the practical uses of behavioral finance. This article identifies potential problems with behavioral finance and its place in the regulatory framework of advice.

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How robo-advice could go bad

Friday, 12 August 2016
Categories: News, Risk Profiling

Robo or algorithmic-generated advice could end up causing massive or widespread investment losses, according to Paul Resnik, who is widely recognised as the father of risk profiling in Australia.

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Can Portfolio-Risk Tools Improve Client Results?

Thursday, 04 August 2016
Categories: News, Risk Profiling

Can New Portfolio-Risk Tools Improve Client Results – Or Win New Business?

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Do you know yourself as an investor?

Wednesday, 13 July 2016
Categories: News, Risk Profiling

A clear communication with your financial adviser about your risk appetite is crucial for a sound portfolio

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Compliance Becomes a Boardroom Issue

Monday, 27 June 2016
Categories: News, Risk Profiling

Financial services firms face increased financial and reputational risks as regulars switch from prescribing rules to enforcing principles-based standards.

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The real measure of your attitude to risk

Wednesday, 15 June 2016
Categories: News, Risk Profiling

A feature in Personal Finance magazine (South Africa) examining the merits of measuring risk in making personalised financial advice.

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Learning the language of risk

Thursday, 02 June 2016
Categories: News, Risk Profiling

Mark Locke of the lang cat, breaks down the language of risk.

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Should you take advice from a robot?

Saturday, 14 May 2016
Categories: News, Risk Profiling

A listed asset manager recently launched a robo-adviser and another will enter the market on Monday, while a third financial services company has launched a robo-advice service for members of its umbrella retirement fund.

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Women are risk averse as compared to men

Friday, 13 May 2016
Categories: News, Risk Profiling

Cafemutual analyses FinaMetrica's research on risk aversion base on gender.

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Some Robo Risk Models Are Risky Business for FAs

Thursday, 28 April 2016
Categories: News, Risk Profiling

BRUCE LOVE, Managing Editor of Financial Advisor discusses robos with Paul Resnik

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An Advisor's View: The Art & Science of Financial Planning

Thursday, 21 April 2016
Categories: News, Risk Profiling

A financial advisor gives us his take on the art and science of financial planning – with specific reference to risk profiling.

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Are Robos on the Rise in a Lawless Land?

Thursday, 21 April 2016
Categories: News, Risk Profiling

The first of a three-part irregular series on the regulation of robo advice and liabilities it may pose to wealth managers.

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Emerging Concerns About Risk Tolerance and Suitability

Thursday, 21 April 2016
Categories: News, Risk Profiling

Tyler Nunnally discusses the emerging concerns about risk tolerance and suitability.

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Advisors & investors off the mark about risk tolerance

Thursday, 31 March 2016
Categories: News, Risk Profiling

CNBC reports that many advisors and investors are off the mark when it comes to risk tolerance.

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Putting Millennials’ Finances Into Focus

Thursday, 31 March 2016
Categories: News, Risk Profiling

ThinnkAdvisor offers some interesting insights on the unique financial attributes and attitudes of the millennial generation.

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FinaMetrica Wins Risk Profiling Award in the U.S.

Monday, 21 March 2016
Categories: Advice, Investments, News, Risk Profiling, UK Press Release, US Press Release

FinaMetrica has been crowned ‘Best Risk Profiling Solution’ at the 3rd Family Wealth Report Awards 2016. The independently owned Australian-based business says the award is a much appreciated confirmation that it provides a best-of-breed tool for measuring risk tolerance to better match portfolios to the needs of investors.

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Targets for robos to grow with net use

Thursday, 17 March 2016
Categories: News, Risk Profiling

Young adults could be the next second target for robos after their parents’ who are increasingly managing their wealth online, says FinaMetrica's Paul Resnik.

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Challenges facing robos on consent

Thursday, 17 March 2016
Categories: News, Risk Profiling

The challenges to wealth-management firms in the four major markets of the US, UK, Australia and Europe are mounting, says FinaMetrica's Paul Resnik.

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Advisors must brace for DOL fiduciary

Thursday, 17 March 2016
Categories: News, Risk Profiling

Time to weigh the role technology will play in keeping advisory practices in compliance, as well as profitable.

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Discussion paper on robos a disappointment

Wednesday, 09 March 2016
Categories: News, Risk Profiling

Paul Resnik, director of risk-profiling firm FinaMetrica, says a new paper analysing automated financial advice shows “no awareness” of the role of risk tolerance.

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Men Prefer More Risk Than Dames

Tuesday, 08 March 2016
Categories: Advice, AUS Press Release, Investments, News, Risk Profiling

FinaMetrica is warning advisors to act in the best interests of the female investor in a couple, as well as the man, on International Women’s Day.

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Investor behaviour comes at cost

Monday, 07 March 2016
Categories: News, Risk Profiling

As markets swing, emotions are driving many investment decisions rather than a person's long-term financial plan. And this is costing them money, says FinaMetrica's Paul Resnik.

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Robo Rise May Be Barred

Monday, 07 March 2016
Categories: News, Risk Profiling

Robo-advisors need clients to operate and the cost of acquiring clients in financial services is high and this may limit their rise, says FinaMetrica's Paul Resnik.

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Bernie and The Trump

Wednesday, 02 March 2016
Categories: News, Risk Profiling

Why the supporters of Bernie Sanders and Donald Trump are foretelling the end of the 35-year bull market in bonds.

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FinaMetrica Wins Risk Profiling Award

Tuesday, 23 February 2016
Categories: Advice, AUS Press Release, Investments, News, Risk Profiling

FinaMetrica has been crowned ‘Best Risk Profiling Solution’ at the 3rd WealthBriefing Swiss Awards. Judges were impressed by a clear submission from FinaMetrica that showed a pragmatic and innovative approach and a superb database and analytical function.

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Why Robo-Advisors Will Fail

Friday, 19 February 2016
Categories: News, Risk Profiling

There’s no denying robo-advisors are gaining popularity, but FinaMetrica co-founder Paul Resnik thinks they’re a “robo-bubble” that’s bound to “blow up” as many are failing to properly assess risk tolerance.

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Testing Risk Tolerance

Friday, 19 February 2016
Categories: News, Risk Profiling

FinaMetrica is the pioneer in the psychological assessment of risk tolerance, says WealthManagement.com. "The company’s data show investors’ tolerance for risk changes very little through sharp market drops, including the crash of 2008-2009. Independent researchers have drawn similar conclusions from the same data".

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As Stocks Gyrate, Measure Your Risk Tolerance

Tuesday, 16 February 2016
Categories: News, Risk Profiling

As stocks gyrate, it's time to measure your risk tolerance, says The New York Times. Using data from FinaMetrica, the New York Times has plotted a useful chart on the level of stocks you'd be comfortable holding, depending on one’s risk tolerance level.

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Avoid 'panic selling'

Tuesday, 02 February 2016
Categories: News, Risk Profiling

When faced with market downturns, investors should ride out the storm and remain committed to their long-term strategy, says FinaMetrica.

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SMSFs advised to cut property

Tuesday, 02 February 2016
Categories: News, Risk Profiling

Data from the ATO suggests that SMSFs are taking on unnecessary risk, according to risk profiler FinaMetrica, with the property assets in some SMSFs as high as 30%.

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Playing your cards right

Monday, 01 February 2016
Categories: News, Risk Profiling

There is no logical reason for investors to want a portfolio with which they would not be comfortable, highlighting the need for risk tolerance assessment, says Paul Resnik.

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3 Things Anxious Investors Should Consider

Monday, 01 February 2016
Categories: Advice, AUS Press Release, Investments, News, Risk Profiling

There are three things to think about when share markets sell off to avoid panic selling or knee-jerk reactions that could dent your wealth over the long term, says Paul Resnik.

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Poor practice harms industry

Thursday, 28 January 2016
Categories: News, Risk Profiling

At last someone other than FinaMetrica has come out and condemned the use of poor risk profiling tools, says Paul Resnik, who defends the practice against attack.

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8 Questions to ask yourself before you invest

Monday, 25 January 2016
Categories: News, Risk Profiling

Key questions include “have I completed a trusted risk assessment questionnaire tool (such as this one from FinaMetrica)", according to Nasdaq.com columnist Michael Chamberlain.

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Robos or cow-bos?

Monday, 18 January 2016
Categories: News, Risk Profiling

FinaMetrica's Paul Resnik divides the UK’s embryonic robo-advice market into two groups: those run by small firms, such as advisers (‘entrepreneurial’), and those run by major institutions. Resnik says entrepreneurial robos will be ‘cow-bos’ and institutional robos will be robust.

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Guide To Robo-Advice

Thursday, 14 January 2016
Categories: News, Risk Profiling

The FT Adviser's Guide to Robo-Advice explains what it is, potential rewards and pitfalls and how robos could threaten or compliment traditional financial advice models, with supporting material from FinaMetrica’s Paul Resnik.

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Six challenges for robo-advisers

Thursday, 14 January 2016
Categories: News, Risk Profiling

Robo-advisers will be paradigm-changing, but that doesn’t mean they have a free pass to success, says FinaMetrica’s Paul Resnik.

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For whom robo-advice is suitable?

Monday, 11 January 2016
Categories: News, Risk Profiling

Paul Resnik, director of investment suitability experts FinaMetrica, says robo-advice does not work well in complex situations.

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DSP Blackrock Special Discount

Monday, 11 January 2016
Categories: News, Risk Profiling

FinaMetrica is one of the global leaders in the field of psychometric testing based investor profiling. DSP Blackrock has tied up with FinaMetrica to offer Indian IFAs a chance to try out this cutting edge advisory support tool and buy it at a discount.

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Men dominate FX trading

Monday, 21 December 2015
Categories: Couples, Investments, News

Men and women have very different approaches to risk and currency trading. And while it's easy to assume women are more risk averse, it pays not to generalise about the way the sexes approach foreign ...

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Red flag raised about robo-advice

Monday, 21 December 2015
Categories: News, Risk Profiling

Firms looking to build automated advice solutions into their websites must think carefully about the construction of risk-tolerance assessment tools, FinaMetrica has warned, pointing to the liability risk of unhappy customers come the next significant market correction.

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SMSFs’ Vulnerability To Aussie Shares Exposed By Official Data

Friday, 18 December 2015
Categories: AUS Press Release

FinaMetrica, the global risk and suitability expert, says the self-managed superannuation fund (SMSF) sector in Australia has experienced a drop in total assets during the September quarter of this year following a sharp fall in Australian share prices, highlighting SMSFs’ vulnerability to a local market correction.

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Robo-advice: Fact and fiction

Wednesday, 16 December 2015
Categories: News, Psychometrics, Risk Profiling

FinaMetrica's Paul Resnik has done a good job in providing a bullet point list to define the term robo-advice.

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Robo-advice to drive down advice fees

Monday, 30 November 2015
Categories: News, Psychometrics, Risk Profiling

The proliferation of robo services will likely drive down financial advice fees, FinaMetrica's Paul Resnik has warned in his latest report, The Robo Revolution. Resnik compares robo-advice to the advent of low-cost airlines.

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FinaMetrica boosts Macquarie robo

Monday, 23 November 2015
Categories: News, Psychometrics, Risk Profiling

Macquarie Group has partnered with FinaMetrica to access its risk profiling software for the group’s new robo-adviser platform, OwnersAdvisory.

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Macquarie Uses FinaMetrica Tool

Thursday, 19 November 2015
Categories: AUS Press Release

Macquarie has joined forces with FinaMetrica to use its risk profiling software for its new robo-adviser platform.

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Why you should hold bonds

Thursday, 19 November 2015
Categories: News, Psychometrics, Risk Profiling

Prospects of interest rate rises have deterred investors, but statistics from FinaMetrica show why bonds are a valuable portfolio constituent.

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Risk-profiling and better retirement

Wednesday, 18 November 2015
Categories: News, Psychometrics, Risk Profiling

A little goes a long way when it comes to risk profiling in accumulation, says FinaMetrica's Paul Resnik.

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Robos biggest development 30 years

Wednesday, 18 November 2015
Categories: News, Psychometrics, Risk Profiling

A new report from FinaMetrica, The Robo Revolution, describes robo-advice as the most significant development in financial advice in decades.

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10 Dramatic Impacts Of Robo Revolution

Tuesday, 17 November 2015
Categories: AUS Press Release

A new FinaMetrica report, The Robo Revolution, details 10 dramatic impacts of robo-advisers on the Australian and global financial planning industry.

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FCA moves fall short

Monday, 16 November 2015
Categories: News, Psychometrics, Risk Profiling

FinaMetrica's Paul Resnik says robo-advice will not advance as it should in the UK until the regulatory environment becomes more nurturing. FinaMetrica believes most robos don't have a suitability process 'fit for purpose’ in the UK.

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10 reasons robos will change your world

Monday, 16 November 2015
Categories: News, Psychometrics, Risk Profiling

A new report from FinaMetrica, The Robo Revolution, says there is every reason to approach robos with caution but not fear as they will be disruptors but not Terminators.

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Macquarie robo uses FinaMetrica

Friday, 13 November 2015
Categories: News, Psychometrics, Risk Profiling

Macquarie's new robo advice platform uses FinaMetrica risk-profiling software to gauge each customer's risk profile. It will send shock-waves throughout the investment industry.

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Top 10 impacts of robos

Thursday, 12 November 2015
Categories: News, Psychometrics, Risk Profiling

Here is what FinaMetrica thinks robo-advisers will mean for human advisers. It's not all bad, says Paul Resnik in a new report, The Robo Revolution.

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Gaining clients challenge for robos

Thursday, 12 November 2015
Categories: News, Psychometrics, Risk Profiling

The cost of acquiring clients is the “elephant in the room” in the online advice debate, says FinaMetrica's Paul Resnik in a new report.

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4 Ways Clients Approach Risk

Monday, 09 November 2015
Categories: News, Psychometrics, Risk Profiling

In recent years, a number of firms have come on the scene to help investors and their advisors assess risk tolerance, including FinaMetrica.

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Report detects 'elephant in the room'

Friday, 06 November 2015
Categories: News, Psychometrics, Risk Profiling

The biggest obstacle blocking robo-advisers' rise is the same problem that plagues the finance sector - the almighty cost of acquiring clients, according to an eye-opening report from FinaMetrica.

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Telegraph Readers Favour Risk

Friday, 30 October 2015
Categories: News, Psychometrics, Risk Profiling

The Telegraph recently teamed up with FinaMetrica to check how comfortable its readers are with financial risk. Almost 700 readers have so far given their answers and the results show that they are more tolerant of risk than the average person.

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Robo-advice dilemma

Thursday, 29 October 2015
Categories: Advice, Investments, News, Risk Profiling, Technology

So far, most algorithm-based advice models - be they completely automated, or ‘cyborg’, where a human component is required - have not paid much attention to best practice in terms of suitability, says FinaMetrica's Paul Resnik in a new soon-to-be-released white paper.

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Danger in linking risk scores

Monday, 26 October 2015
Categories: News

There is a very good reason FinaMetrica doesn't link risk tolerance scores directly to a portfolio. It's not a technology issue. It's because it's just not the right thing to do.

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Risk appetite in focus

Tuesday, 20 October 2015
Categories: News

FinaMetrica has published data which it said highlights men’s hunger for risk is not much greater than women’s.

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Rethinking Classic 60/40 Portfolios

Friday, 16 October 2015
Categories: News

FinaMetrica has been identified as one of the three most popular risk profiling companies in the UK, according to research from Platforum this year; along with Morningstar and Distribution Technology, they were used by 62% of respondents in April 2015.

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Men vs Women Risk Tolerance

Wednesday, 14 October 2015
Categories: AUS Press Release

When it comes to investing, women are generally less tolerant of risk than men – but the difference is less than you might think, according to FinaMetrica co-founder Paul Resnik.

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Advisors constrained by robo fears

Wednesday, 14 October 2015
Categories: News

UK advisors are ‘constrained by fear’ over the rise of robo-advice, according to FinaMetrica's Paul Resnik.

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10 Myths About Risk Tolerance

Monday, 12 October 2015
Categories: News

FinaMetrica experts demystify 10 myths about risk tolerance, what it is, how it can be measured and applied in the financial planning process.

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Nerves of steel or scaredy cat?

Friday, 09 October 2015
Categories: News

The UK's telegraph has offered free exclusive access to FinaMetrica's online test of risk appetite for a limited time to encourage investors to choose suitable investments.

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SMSF overdone on shares

Tuesday, 29 September 2015
Categories: AUS Press Release

SMSFs may be investing in more growth assets and exposing their portfolios to more investment risk than they might be comfortable with, says Paul Resnik.

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Robo Impact Will Be Widespread

Wednesday, 23 September 2015
Categories: News

Wherever you sit in the financial service supply chain, a robo will be visiting you, your clients and prospects soon.

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FinaMetrica launches robo tool

Tuesday, 22 September 2015
Categories: News

Risk profiling software developer FinaMetrica has launched a robo-advice toolkit targeting investors with under £100,000 to invest.

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More map into FinaMetrica robo-tools

Wednesday, 16 September 2015
Categories: News

FinaMetrica is collaborating with NBK Private Bank Switzerland on the development of a new robo-advice tool to be rolled out to NBK's bankers this year.

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FinaMetrica, NBK Collaborate on Robo

Tuesday, 15 September 2015
Categories: AUS Press Release

FinaMetrica has developed with the NBK Private Bank Switzerland a new sophisticated robo advisor for NBK’s private bankers.

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Three key portfolio reminders

Thursday, 10 September 2015
Categories: News

Investors often run the risk of making emotional decisions in the heat of the moment - decisions they later regret. Here are three key things FinaMetrica’s Paul Resnik says investors need to remember in order to avoid bad investment decisions.

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Will Robos’ Clients Run On Crash?

Friday, 04 September 2015
Categories: News

The market would have to a suffer a ‘bigger dip’ to really settle in with people’s emotions and scare them away, says one expert.

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Risk tolerance test price slashed

Tuesday, 01 September 2015
Categories: AUS Press Release

FinaMetrica risk tolerance test cost has been slashed to $5 til 30 Sep 2015 for Australian consumers. Our goal is to raise consumer awareness of quality risk profiling.

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Risk tolerance test price slashed

Tuesday, 01 September 2015
Categories: US Press Release

FinaMetrica risk tolerance test cost has been slashed to $4 til 30 Sep 2015 for US consumers. Our goal is to raise consumer awareness of quality risk profiling.

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Millennials Hit By Sell-Off

Monday, 31 August 2015
Categories: News

As the markets whipsawed over late August, young workers who have all their retirement funds tied up in long-range target-date funds may have been the hardest hit.

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FinaMetrica, Redtail in Tech Integration

Monday, 17 August 2015
Categories: News

FinaMetrica has integrated its solution with Redtail to offer FinaMetrica’s risk tolerance scores in Redtail's CRM.

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Here's your Social Security plan

Friday, 14 August 2015
Categories: News

It ain't Social Security. Eight ways to get your retirement finances in shape now, according to Bloomberg.

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FinaMetrica and Redtail Join Forces to Offer Simple Best Practice Solution

Wednesday, 12 August 2015
Categories: US Press Release

FinaMetrica, the pre-eminent global provider of risk tolerance assessment tools, announced today an integration with Redtail Technology, a leading U.S. provider of client relationship management (CRM) systems for financial advisors.

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FinaMetrica and EBI Announce Collaboration

Monday, 03 August 2015
Categories: UK Press Release

EBI, an emerging discretionary fund manager and FinaMetrica, the investment suitability specialists, have come together to assist independent financial advisors to reduce the frictions in investment advising.

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FinaMetrica Launches Upgraded MoneyGuidePro® Risk Profiling Tool

Saturday, 01 August 2015
Categories: US Press Release

FinaMetrica has released its upgraded MGP 2.0 risk profiling tool, which replaces the previous version (MGP 1.5) from August 1, 2015.

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Are millennials as risk-averse as they're made out to be?

Friday, 31 July 2015
Categories: News

New data compares millennials' risk tolerance to their Generation X and baby boomer counterparts.

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Risk assessment needs structured approach

Tuesday, 28 July 2015
Categories: News

Speaking to financialobserver, FinaMetrica co-founder Paul Resnik said that although it was entirely appropriate to use an objectives-based approach if this met a client’s needs, there was potential for confusion to arise around the risk language used.

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Strong demand for threesixty Investor Profiler tool

Monday, 27 July 2015
Categories: UK Press Release

Support services firm threesixty has seen strong demand for its new Investor Profiler tool, developed in conjunction with FinaMetrica, with 68 firms signing up in the first month since launch.

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Millennials may drown in high stock holdings

Thursday, 23 July 2015
Categories: News

Auto-enrollment in target-date retirement funds means young workers may have more in equities than they're comfortable with, according to FinaMetrica.

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Sequence risk debate magnifies

Wednesday, 22 July 2015
Categories: News

Each and every professional adviser has to individually come to an informed view on sequence risk, which FinaMetrica’s Paul Resnik and Peter Worcester maintain is overrated.

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Cyborg advisers head to UK

Wednesday, 22 July 2015
Categories: News

FinaMetrica’s Paul Resnik tells FT Adviser what’s next in the world of robos and cyborg advice.

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A differing view on sequence risk

Wednesday, 22 July 2015
Categories: News

Abraham Okusanya tackles FinaMetrica’s view on sequence risk and explains why he believes it is very real.

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Robos: Why resistance is futile

Monday, 20 July 2015
Categories: News

Some see the rise of robo-advice as an opportunity, others as a threat. Paul Resnik outlines which camp might be closer to the truth.

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Is sequence risk real?

Thursday, 16 July 2015
Categories: News

Is sequence risk real, or overhyped? Investment consultant and industry stalwart Graham Bentley attempts to instil some order in the debate generated by research from FinaMetrica revealing it’s overstated.

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Robo-Proof Your Business

Tuesday, 14 July 2015
Categories: News

Wherever you sit in the financial service supply chain, a robo will probably be "visiting" you, your clients and prospects soon, writes FinaMetrica's Paul Resnik.

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Learning the lessons of history

Tuesday, 14 July 2015
Categories: News

Analysis of Australian data by FinaMetrica suggests that sequence risk for retirees may not be the danger claimed.

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Risks in outsourced options

Tuesday, 14 July 2015
Categories: News

A feature of the post-RDR landscape in the UK has been the greater market share taken by outsourced investment solutions, with risk profiling of funds becoming more important.

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Tips on assessing risk tolerance

Tuesday, 14 July 2015
Categories: News

Most financial advisors are keenly aware of the importance of risk, but there are few financial terms that are as poorly defined as risk tolerance.

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Great Time for a Risk Reality Check

Tuesday, 07 July 2015
Categories: News

The 800,000-plus tests FinaMetrica has analyzed show that most clients of advisors just slightly overestimate their comfort with investment risk. But advisors often underestimate their own stomach for risk significantly, by as much as 20 points (on a 1 to 100 scale).

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Sequence risk fears overstated

Friday, 03 July 2015
Categories: News

Discussions of sequence risk have been increasingly frequent in the past few months. However, the reasoning is not supported by the evidence, say FinaMetrica experts.

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Success in financial planning

Tuesday, 30 June 2015
Categories: News

FinaMetrica's Paul Resnik explains how following the firm's five proofs enables an advisory business to get in tune with a client's needs, situations and aspirations and earn their trust.

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Putting Sequence Risk In Its Place

Friday, 26 June 2015
Categories: News

Discussions of sequence or series risk regularly appear in the financial media. Analysis of Australian historical data suggests that sequence risk for retirees may not be the danger claimed. If this is true, then many of the standard approaches to investment within retirement plans are flawed.

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Property splurge exposes households to higher rates

Friday, 26 June 2015
Categories: News

The current rush to property is making Australians vulnerable to rising interest rates, or to a recession, which could trigger a property-market correction, risk experts believe.

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Australian Wealth Hits High

Thursday, 25 June 2015
Categories: AUS Press Release

Australians’ love affair with property has pushed up their wealth to record highs. FinaMetrica risk experts Paul Resnik and Peter Worcester warn that such a huge allocation to property exposes households to a higher interest rates.

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Guide to Risk Profiling

Thursday, 18 June 2015
Categories: News

While there is no prescribed form of risk profiling, the Financial Conduct Authority and their predecessor the Financial Services Authority has set out its expectations and tests for suitable consumer outcomes that should be delivered by assessments of how much cash a client could put in jeopardy.

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Adviser Workshop: How to risk profile couples

Tuesday, 16 June 2015
Categories: News

UK advisors are using FinaMetrica’s risk-profiling tool, and like it because it has a global reach.

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How Financial Advisors Lose Clients

Friday, 12 June 2015
Categories: News

It is crucial that advisors are able to spot and avoid common pitfalls. Otherwise, they'll lose clients.

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What do tougher FINRA rules mean for you?

Thursday, 11 June 2015
Categories: News

As the fiduciary debate rages on, suitability changes are here and new FINRA guidelines increasing sanctions for violations of its suitability rule should also be a warning to RIAs that stricter regulatory standards governing investment advice are all but guaranteed, writes Tyler D. Nunnally in ThinkAdvisor.

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Professional investors lift their exposure to global shares

Friday, 05 June 2015
Categories: News

Professional investors are lifting their investment in overseas shares and reducing their exposure to Australian shares.

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10 Myths About Risk Tolerance

Wednesday, 03 June 2015
Categories: News

There are many myths about risk tolerance, what it is, and how it can be measured and applied in the financial planning process. Risk tolerance is commonly confused with other risk attributes such as risk behavior or risk capacity.

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SMSFs need more investment diversity: FinaMetrica

Tuesday, 02 June 2015
Categories: News

Risk profiler FinaMetrica believes continued investment in Australian shares and cash could spell disaster for SMSFs when the local market corrects.

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SMSFs Devote More to Cash and Shares

Friday, 29 May 2015
Categories: AUS Press Release

Self-managed superannuation fund (SMSFs) assets hit a fresh high of $580.2 billion in the March quarter of 2015, with Australian share holdings jumping to $193.1 billion, while Australia’s total managed funds industry hit a record $2.6 trillion in the same quarter. While SMSFs devoted more to property and cash, superannuation funds reduced their cash deposits.

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FinaMetrica a starting point

Thursday, 21 May 2015
Categories: Investments, News, Risk Profiling

Mike Godfrey of Cube Financial Planning uses FinaMetrica to assess client risk appetite. “We use ...Finametrica as a starting point for the discussion, which creates a report and puts the client into one of seven risk profiles. We have translated that into a broad portfolio structure for each, but it is not prescriptive. We then build beyond that with the client,” he tells New Model Advisor.

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Advising Couples Who Disagree on Risk

Monday, 18 May 2015
Categories: Investments, News, Risk Profiling

When it comes to investing, women are generally less tolerant of financial risk than their male partners, and FinaMetrica data reveals just by how much.

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Best way to prepare for meltdown

Monday, 18 May 2015
Categories: Investments, News, Risk Profiling

Real Deal Retirement editor Walter Updegrave says understanding risk appetite will help investors avoid selling stocks in a panic during market downturns and sealing losses, pointing to FinaMetrica's risk tolerance test.

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'Buckets' Approach to Retirement Planning

Monday, 04 May 2015
Categories: Investments, News, Risk Profiling

One strategy that has intuitive appeal in financial planning is the “Bucket Shop” approach as it can be applied to meet older investors’ needs, explain Paul Resnik and Peter Worcester.

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Five Questions To Ask DFM Partners

Friday, 01 May 2015
Categories: Investments, News, Risk Profiling

Here are five questions advisers should ask potential DFM partners during the selection process, including their use of mapping tools.

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How To Keep Clients

Friday, 01 May 2015
Categories: Investments, News, Risk Profiling

For practices looking to bolster their risk assessment procedures, there are a few key issues to consider, says FinaMetrica's Paul Resnik.

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How Exposed Are You To The Bubble?

Tuesday, 21 April 2015
Categories: Investments, News, Risk Profiling

How many self managed super fund (SMSF) investors are aware of their real exposure to residential housing? We believe that the average investor vastly underestimates their exposure.

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Women Less Likely to Seek Advice

Friday, 17 April 2015
Categories: Investments, News, Risk Profiling

New data shows the majority of women have never gone to a financial adviser, with FinaMetrica data also revealing women in couples are less risk tolerant than their male partners.

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Risk Test Broadens Advice

Thursday, 09 April 2015
Categories: Investments, News, Risk Profiling

Simplistic risk tolerance tests were limiting the advice conversations and relationships financial planners were able to have with their clients, according to FinaMetrica.

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Test For Risk and Get Asset Mix Right

Thursday, 09 April 2015
Categories: Investments, News, Risk Profiling

Getting a handle on your true appetite for risk is crucial to creating the right asset mix, says Real Deal Retirement editor Walter Updegrave.

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FinaMetrica Wins Risk Profiling Award

Wednesday, 01 April 2015
Categories: AUS Press Release

FinaMetrica has won the ‘Best Risk Profiling Solution’ award at the 2015 WealthBriefing Swiss Awards.

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Getting Risk Right

Friday, 27 March 2015
Categories: Investments, News, Risk Profiling

Getting risk right lays the foundation for a productive long-term relationship built on trust and an in-depth understanding of the client.

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UK Women Taking Less Risk Than Men

Wednesday, 25 March 2015
Categories: UK Press Release

FinaMetrica data shows that in 64% of UK couples, men have a higher tolerance for financial risk than their female partners.

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Are risk-tolerance levels lower in Australia?

Tuesday, 24 March 2015
Categories: Investments, News, Risk Profiling

You might think people living in the US like financial risk a bit more than people living in Australia or the UK. But risk tolerance is remarkably stable across these three nations, FinaMetrica data shows.

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Risk Tolerance Needed for Fiduciary Care

Tuesday, 24 March 2015
Categories: Investments, News, Risk Profiling

Comprehensive risk tolerance testing should be included as a key component of the fiduciary care advisers provided for clients in order to lift standards across the industry, FinaMetrica says.

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SMSFs Should End The Affair

Friday, 13 March 2015
Categories: Investments, News, Risk Profiling

With returns on high cash balances in the SMSF sector dwindling, a lack of diversification also poses a growing risk.

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Preparing Clients For Market Swings

Monday, 09 March 2015
Categories: Investments, News, Risk Profiling

Reacting to market movements is a major destroyer of personal wealth, says FinaMetrica's Paul Resnik.

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Australian Advice Hamstrung By Low Standards

Monday, 09 March 2015
Categories: Investments, News, Risk Profiling

Financial planning advice in Australia is hamstrung by low standards and regulation which focuses on selling, failing to address other important matters.

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Australian Advisory Firms Complacent

Monday, 09 March 2015
Categories: Investments, News, Risk Profiling

One of the biggest threats facing Australian financial planning businesses is simple complacency, according to a co-founder and director of risk profiling business FinaMetrica, Paul Resnik.

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Women Are Less Risky Investors

Friday, 06 March 2015
Categories: Investments, News, Risk Profiling

Women prefer less financial risk than men, a new analysis by FinaMetrica reveals.

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Advisers must alter attitudes to reduce gender divide

Friday, 06 March 2015
Categories: Investments, News, Risk Profiling

Financial advisers have been warned not to ignore the needs of women in a couple and must act in the best interests of partners, not just the man’s.

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SMSFs drop ball on risk

Friday, 06 March 2015
Categories: Investments, News, Risk Profiling

SMSFs are taking on more risks than they probably realise by investing most of their assets in Australia, write Paul Resnik and Peter Worcester.

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Safer sex: women prefer less financial risk than men

Thursday, 05 March 2015
Categories: AUS Press Release

When it comes to investing, women are generally less tolerant of risk than men, and in just one in six couples will it be the female who is the bigger risk taker, according to new data. Ahead of International Women’s Day on March 8, risk profiling firm FinaMetrica is warning advisers to act in the best interests of both partners, not just man’s.

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FinaMetrica and Macrorisk Collaborate on Solutions

Wednesday, 04 March 2015
Categories: US Press Release

A collaboration between FinaMetrica and MacroRisk will allow advisors to directly link a client’s risk tolerance score to MacroRisk’s portfolio allocation testing capabilities.

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SMSFs Exposed to Big Risks

Monday, 02 March 2015
Categories: AUS Press Release

SMSF assets jumped almost $10bn to $553.7bn over the December quarter, with Australian assets still dominating the mix, exposing these funds to significant investment risk.

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Home Bias Putting SMSFs at Risk

Monday, 02 March 2015
Categories: Investments, News, Risk Profiling

Most self-managed super funds (SMSFs) and retirement investors are failing to realise the risks of predominantly investing in Australian assets, according to FinaMetrica.

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RiXtrema, FinaMetrica Offer Complete Risk Solution

Thursday, 12 February 2015
Categories: US Press Release

Portfolio stress-testing expert RiXtrema and risk-profiling specialist FinaMetrica have collaborated to offer advisers a combined end-to-end risk management solution that will enable advisers to bolt ahead of the competition and greatly benefit investors.

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FinaMetrica Launches Expanding Risk Profiling System

Thursday, 12 February 2015
Categories: US Press Release

FinaMetrica has launched its newly integrated and expanded risk profiling system, FinaMetrica Plus, featuring a 12-question risk tolerance test.

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Five Proofs – Delivering Quality Advice

Friday, 06 February 2015
Categories: Investments, News, Risk Profiling

One of the most important things that any organisation can do is to create a culture that allows financial planners to get on with the task of giving suitable financial advice, says FinaMetrica's Paul Resnik.

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FinaMetrica Test Used to Deliver Quality Advice

Monday, 19 January 2015
Categories: Investments, News, Risk Profiling

FinaMetrica’s risk tolerance surveys are being used by independent financial planners wanting to stand out from the crowd deliver more personalised financial advice.

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FinaMetrica Announces New Mandate For Client Risk Profiling

Tuesday, 13 January 2015
Categories: US Press Release

FinaMetrica, a company that helps financial advisors properly assess client risk tolerance, announced today that GV Financial Advisors, a leading wealth management firm, has adopted the FinaMetrica Risk Profiling System.

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FinaMetrica Plus Training Video

Monday, 29 December 2014
Categories: Audio & Video, Risk Profiling, Technology

Watch FinaMetrica's US Strategist Tyler Nunnally on this webinar go through the new online features and functionality of FinaMetrica Plus, including an introduction to the shorter 12-queston risk tolerance test.

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SMSFs Vulnerable as Offshore Assets Ignored

Wednesday, 17 December 2014
Categories: AUS Press Release

Assets held by SMSFs increased marginally over the September quarter to $544.4 billion, with most of that held in cash and Australian shares and almost no assets held offshore.

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Investor Risk Tolerance Independent of Markets

Wednesday, 17 December 2014
Categories: Investments, News, Risk Profiling

An individual’s risk tolerance was likely to remain stable over time and be independent of market fluctuations, according to specialist risk tolerance firm FinaMetrica.

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Are Your Investments at Risk?

Wednesday, 10 December 2014
Categories: Investments, News, Risk Profiling

Getting your risk profile right takes work, but if you want a well-funded retirement and calm nerves, it’s crucial to determine how much risk you can handle. FinaMetrica worked with MoneySense to create content and the opportunity for the public to take a free risk tolerance test. We would be pleased to explore similar opportunities with others.

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Confidence in Advice Boosted with Risk Profiling

Monday, 01 December 2014
Categories: Investments, News, Risk Profiling

The continuing absence of rigour in risk profiling does a disservice to Australian investors and is out of kilter with international standards, says Paul Resnik.

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How to Avoid the Misery of the Markets

Thursday, 27 November 2014
Categories: Investments, News, Risk Profiling

FinaMetrica Co-Founder Paul Resnik explains on Bloomberg Radio's Taking Stock program how investors can avoid the misery of market corrections by ensuring their investments are consistent with their risk tolerance.

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ASIC on Hunt For Poor Risk-Return Communication

Friday, 14 November 2014
Categories: Investments, News, Risk Profiling

Advisors should be questioning the effectiveness of how they communicate risk to clients, with ASIC concerned by gaps in consumer financial literacy.

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“High Risk” Advisers Need to Act Now to Elevate Consumer Needs

Thursday, 13 November 2014
Categories: AUS Press Release

FinaMetrica has welcomed the Australian Securities & Investment Commission’s (ASIC) inaugural Strategic Outlook, in which it has identified financial advisers as a “high risk area” for consumers. ASIC will target advisers in its surveillance program in 2014-15.

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Millennials Have Similar Risk Tolerance to Older People

Wednesday, 12 November 2014
Categories: UK Press Release

FinaMetrica data reveals Millennials have similar risk tolerance to older generations, countering general opinion that they are more conservative.

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Three Issues With Your SMSF

Friday, 07 November 2014
Categories: Investments, News, Risk Profiling

SMSFs largely invest in just one country: Australia. Unfortunately, concentrating on what they know leaves retirees vulnerable to a local market downturn.

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Risk Tolerance Assessment is Crucial

Friday, 07 November 2014
Categories: Investments, News, Risk Profiling

Measuring risk tolerance is critical for effective retirement planning, but few retirement plan sponsors and advisers in the US do it correctly.

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Towry Adopts FinaMetrica System

Thursday, 06 November 2014
Categories: UK Press Release

FinaMetrica has signed a deal with financial planning and wealth management firm Towry after a competitive tender. The arrangement will integrate FinaMetrica’s risk profiling solution into Towry’s advice processes.

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Towry Adopts FinaMetrica Solution

Thursday, 06 November 2014
Categories: Investments, News, Risk Profiling

Towry will integrate FinaMetrica’s risk profiling solution into its investment and advice processes.

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Younger Generation Not So Conservative

Wednesday, 05 November 2014
Categories: Investments, News, Risk Profiling

The populist notion that millennials are generally more conservative than older investors has been quashed by new research from FinaMetrica.

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Tilney Does Deal with FinaMetrica

Wednesday, 05 November 2014
Categories: Investments, News, Risk Profiling

Discretionary fund manager Tilney for Intermediaries has signed contracts to ‘risk map’ its model portfolios with FinaMetrica and Distribution Technology as it puts client suitability considerations back into the hands of advisers.

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Caution on Millennial Asset Allocation - Australian Release

Tuesday, 04 November 2014
Categories: AUS Press Release

An Australian millennial placed into a lifecycle fund would typically receive a 90% growth asset allocation. However, this would be too risky emotionally for 96% of millennial investors, according to FinaMetrica data.

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Sorting The Good Risk-Profiling Tools From The Bad

Friday, 24 October 2014
Categories: Investments, News, Risk Profiling

Advisers must ask the right questions and understand the limitations of risk-profiling tools to avoid the compliance dangers associated with their use, say experts.

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FinaMetrica Risk Tolerance Data Reveals Millenials Not So Different

Thursday, 23 October 2014
Categories: US Press Release

Millennials in the United States have been thought to behave more conservatively when it comes to finances than older generations. But new research from FinaMetrica, a company that helps financial advisors properly assess client risk tolerance, found similar risk tolerance levels between millennials and people of older generations.

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New Reports Reveal Shortfalls in Australian Advice Industry

Monday, 13 October 2014
Categories: AUS Press Release

Commissions are still tainting the quality of advice in the life insurance industry while inappropriate advice dominates investment disputes brought before the Australian Financial Ombudsman Service, according to two official reports released last week.

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Faster Net Speeds and More Mobile Activity Benefit Business

Tuesday, 07 October 2014
Categories: AUS Press Release

Australians are downloading more data on their mobile phones and are accessing the internet at faster speeds, which will benefit all businesses using the internet, according to FinaMetrica, an Australian business selling its online risk-profiling solution globally.

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Risk Tool Smackdown: FinaMetrica vs. Riskalyze

Thursday, 25 September 2014
Categories: Investments, News, Risk Profiling

Bob Veres evaluates the tools advisors are using to better understand their clients by testing his financial risk tolerance using two of the more popular instruments: Riskalyze and FinaMetrica. Which tool comes out on top?

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SMSF Asset Allocations a Cause For Worry?

Tuesday, 16 September 2014
Categories: AUS Press Release

SMSFs’ investment exposures at the end of the June quarter reveal high equity concentration risks, which leave many retirees vulnerable to an Australian share market downturn, according to Paul Resnik, Co-Founder of FinaMetrica, which specialises in the risk profiling of investors.

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Software Investment Hits Record $3.26 Billion

Wednesday, 03 September 2014
Categories: AUS Press Release

Australian businesses invested a record $3.26 billion in software in the second quarter of 2014, reflecting the rising importance of information technology to the economy overall and to the financial services sector in particular, according FinaMetrica, a software provider for the wealth management industry.

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Lure of the independent market sees fortress under siege

Monday, 01 September 2014
Categories: Investments, News, Risk Profiling

Today, the Australian financial advice landscape is dominated by a small number of high-rise fortresses, most of which bear the bright logos – the modern coat-of-arms – of their institutional masters....

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Why forecasting returns is not black and white

Friday, 01 August 2014
Categories: Investments, News, Risk Profiling

Institutional investors tend to have constraints on when they can, versus should, make significant changes to asset allocation – much more so than financial planners, according to Tim Farrelly, a veteran advisor to the advisors. But this works in favour of his business, he believes. He spoke with David Chaplin about the processes behind his forecasts.

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The questions that can skew a risk tolerance reading

Friday, 01 August 2014
Categories: Investments, News, Risk Profiling

Many advisers need to change their view on what constitutes risk tolerance, argues Paul Resnik in Professional Adviser...

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PlanPlus, FinaMetrica release risk profiling tool

Friday, 01 August 2014
Categories: Investments, News, Risk Profiling

Toronto, ON – PlanPlus Inc., a financial and investment planning software company and FinaMetrica, an Australian-based firm with a globally supported psychometric risk tolerance test for advisors have collaborated to release a new best-of-breed risk profiling and suitability analysis for financial advisors and firms.

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Senate Report Doesn’t Go Far Enough to Protect Consumers

Sunday, 13 July 2014
Categories: AUS Press Release

Australian investors have inferior protection from poor investment advice compared to their peers around the world. That situation won’t change any time soon, according to Paul Resnik, co-founder of FinaMetrica.

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More Evidence for the Stability of Risk Tolerance

Tuesday, 01 July 2014
Categories: Other, Psychometrics, Risk Profiling

There is a widespread misconception that risk tolerance collapses when markets collapse. A new academic study, “Do Large Swings in Equity Values Change Risk Tolerance?” in the Journal of Financial Planning June 2014, shows that there was no such collapse during the 2007 - 2009 market turmoil.

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Senate report doesn’t go far enough to protect consumers

Tuesday, 01 July 2014
Categories: Investments, News, Risk Profiling

Australian investors have inferior protection from poor investment advice compared to their peers around the world. That situation won't change any time soon, despite the findings of a Senate report into the performance of the ASIC, according to Paul Resnik, co-founder of FinaMetrica.

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Getting Clients to Share Their Secrets

Tuesday, 01 July 2014
Categories: Investments, News, Risk Profiling

Prospective clients are typically quite hesitant about revealing intimate financial details, and even clients who’ve signed on the dotted line are known to withhold information — and assets — from their financial advisors.

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Check Your Tolerance for Investment Risk Now, Before Markets Sag

Tuesday, 01 July 2014
Categories: Investments, News, Risk Profiling

The stock market has been on an impressive run the past five years, yet many investors worry that disappointing corporate earnings, jitters over European banks or some other bit of bad news could soon end the party.

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Australian Businesses Rake in Record $246bn From Internet

Thursday, 19 June 2014
Categories: AUS Press Release

Australian businesses earned a record $246.4 billion from internet sales in 2012-13, up from $237.1 billion in 2011-12, reflecting the rising importance of e-commerce to economic activity.

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FinaMetrica Wins Best Risk Profiling Solution Award

Tuesday, 03 June 2014
Categories: AUS Press Release

FinaMetrica has been crowned ‘Best Risk Profiling Solution’ at the WealthBriefingAsia Singapore Awards 2014. This is yet another milestone in the company’s drive to be recognised as the pre-eminent global provider of risk tolerance tools.

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Star-Crossed Investors and Financial Advice

Sunday, 01 June 2014
Categories: Journal Article, News, Risk Profiling

When it comes to investing, women are generally less tolerant of risk than men. This difference can lead to conflict within couples about both how to invest and spend their money.

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FinaMetrica Wins Yet More Awards For Its Risk Profiling Solution

Sunday, 01 June 2014
Categories: Journal Article, News, Risk Profiling

FinaMetrica has won two more international awards for best ‘Risk Profiling Solution’ at the WealthBriefingAsia Awards for Singapore and Hong Kong. The awards recognise the best “technology solution to help wealth managers assess and document the risk appetite of clients.”

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‘No excuse’ for businesses not being online as e-commerce booms

Sunday, 01 June 2014
Categories: Journal Article, News, Risk Profiling

iTWire: The rising importance of e-commerce to Australia’s economy is reflected in ABS figures showing that Australian businesses earned a record $246.4 billion from internet sales in 2012-13, according to the head of a risk tolerance and risk assessment solutions vendor which draws all its revenue from internet sales.

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Webinar: IPS AdvisorPro Integration with FinaMetrica

Sunday, 01 June 2014
Categories: Audio & Video, Risk Profiling

A recording of the webinar held jointly by FinaMetrica and IPS AdvisorPro on the integration capability available between the two platforms. This collaboration not only brings together best of breed software in risk tolerance and investment policy statement (IPS) generation, but also streamlines users’ ability to assess a client’s risk tolerance and incorporate those results into the investment policy statement (IPS). Used together, these technologies help facilitate advisor-client communications, mutual understanding of roles and responsibilities, and overall more successful client and investment management practices.

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Danger of Increased Risk-Taking as Markets Boom

Sunday, 01 June 2014
Categories: Investments, News, Risk Profiling

Risk means different things to different people -- danger, uncertainty, opportunity or thrill. In reality, risk arises in any situation where there is more than one possible outcome of differing value to the individual.

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Get Couple’s Risk Tolerance Right, or Prepare For a Fight

Thursday, 15 May 2014
Categories: AUS Press Release

Financial advisers must consider the risk preferences of each person in a couple in giving investment advice - and not ignore the needs of the less risk tolerant partner, who is typically the woman, according to new data from FinaMetrica.

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Planners need to differentiate risk tolerances

Thursday, 01 May 2014
Categories: Journal Article, News, Risk Profiling

Financial planners need to understand and take account of the different risk tolerances of couples to whom they are providing financial advice, according to risk profile firm FinaMetrica.

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Safer Sex? Women Take Less Risk Than Men

Thursday, 01 May 2014
Categories: Journal Article, News, Risk Profiling

Overlooking the preferences of the more cautious partner when devising an investment strategy for couples could see planners get a rap from the regulator, risk specialist FinaMetrica has warned.

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FinaMetrica urges separate risk tests for couples.

Thursday, 01 May 2014
Categories: Journal Article, News, Risk Profiling

Financial advisers should ask couples to complete separate risk tolerance tests and take care not to ignore the needs of the most risk-averse partner, Paul Resnik has argued.

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Understanding Your Clients' Risk Tolerance

Thursday, 17 April 2014
Categories: Journal Article, News, Risk Profiling

FinaMetrica is featured in first quarter edition of TD Magazine's Advisor Solutions.

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Faster Net Speed Boosts Efficiency of Online Businesses

Thursday, 10 April 2014
Categories: AUS Press Release

Australians are accessing the internet at higher speeds, helping to improve the efficiency of online financial services businesses, according to FinaMetrica, an Australian business that has just won an international award for its online risk profiling solution.

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FinaMetrica Solution Scores High Profile Win

Friday, 14 March 2014
Categories: News, Risk Profiling

FinaMetrica has won a high-profile international award for its risk profiling system at the Family Wealth Report Awards 2014, which are unique in that they are judged based solely on entrants’ submissions about client experiences.

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The Odd, Mixed Messages From FINRA ...

Thursday, 01 August 2013
Categories: Advice, News, Regulation, Risk Profiling

That description of risk tolerance is a statement of the accepted ‘wisdom’ that younger investors are more capable of recovering from a setback because they have more time to do so. But this is about financial circumstances, including human capital, and not psychological predisposition. Using it in this manner further muddles the meaning of risk tolerance and this lack of clarity makes compliance with the suitability rule more difficult.

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Best Practice Risk Profiling

Thursday, 01 August 2013
Categories: Audio & Video, Risk Profiling

Best Practice Risk Profiling How Best to Give Investment Advice That Is Suitable with Regard to Risk.

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Managing Your Clients’ Risk Tolerance

Thursday, 01 August 2013
Categories: Audio & Video, Risk Profiling

A Compliance Chore or a Business Development Opportunity?

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Risk Tolerance Master Class

Thursday, 01 August 2013
Categories: Audio & Video, Risk Profiling

All the Finer Points about Dealing with Your Clients’ Risk Tolerance

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Paul Resnik on The Science of Risk Profiling ...

Monday, 01 July 2013
Categories: Advice, Audio & Video, Psychometrics, Risk Profiling

Paul talked about why risk tolerance is a deeply ingrained psychological trait and the process of linking test outcomes to specific asset allocation.

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Workflows to Systematize the Delivery of Your Investment Advice Webinar

Monday, 01 July 2013
Categories: Audio & Video, Risk Profiling, Technology

Discover how to effectively incorporate workflows specific to providing investment advice to cut your work time by at least 25% and prevent critical tasks from falling through the cracks. During this session you will be provided with best practices on how to systematize your processes, including FinaMetrica risk profiling, for either managing your clients’ assets whether you do it in house or outsource. You will also see how to use technology to minimize workflow steps for improved efficiency and compliance automation.

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Five Ways to Use FinaMetrica to Attract New Prospects, Work More Efficiently and Bring Value To Your Clients

Monday, 01 July 2013
Categories: Audio & Video, Risk Profiling, Technology

Get the most out of your FinaMetrica subscription by discovering new ways to work more efficiently and differentiate your firm with prospects and clients! During this webinar you will be provided with five powerful ideas for using FinaMetrica to help you attract new prospects and better serve your clients. You will be provided with FinaMetrica-specific targeted conversations, technology integrations and social media campaigns that can uniquely position you in the marketplace.

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Is risk keeping you awake at night?

Saturday, 01 June 2013
Categories: Advice, Investments, News, Risk Profiling

The chief cause of insomnia for many of us may be our superannuation fund's investment strategy.

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Consumer View – FinaMetrica

Monday, 01 April 2013
Categories: News, Risk Profiling, Technology

Jigsaw Tree's review of FinaMetrica.

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Why Risk Tolerance Is Critical to Your Practice - Practically Speaking

Monday, 01 April 2013
Categories: Advice, Investments, News, Risk Profiling

Do not let anyone try and tell you that soccer isn’t a contact sport. This past weekend I was injured while playing the game in our yard with my two young sons - Dylan, 12, and Max, 9. Max and I collided going for a loose ball. For a 9 year-old, Max is a pretty sturdy kid, let me tell you. As Max and I were lying on the ground in agony, Dylan gathered the ball, dribbled to the net and scored, which sealed his victory. In a moment of triumph Dylan proudly exclaimed “I won! I won!” Though it was obvious that Max and I were suffering from a great deal of pain, Dylan seemed rather oblivious to it all. He was just glad that he won. As it turned out, Max was fine, but I was not so lucky. I broke a rib. It is no fun getting old.

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Psychometric-Based Investment Suitability & Enhanced Trust - Actuarial Post

Monday, 01 April 2013
Categories: Advice, Investments, News, Psychometrics, Risk Profiling

It's difficult to trust someone who delivers negative surprises. What we see in the successful branding of cars and clothing for instance, is a consistency of client experience.

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Is your approach to risk in harmony with your DFM's? - IFAOnline.co.uk

Friday, 01 March 2013
Categories: News, Regulation, Risk Profiling

A misalignment between your firm's approach to risk assessment and that of your selected discretionary fund manager (DFM) could lead to "systemic mis-selling", the FSA has warned. What can advisers do about it?

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What's your risk tolerance for investing? - Money

Friday, 01 March 2013
Categories: Advice, Investments, News, Risk Profiling

When assessing your risk tolerance, think seriously about how much you could watch your savings drop before you panic.

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Why stony silence on past suitability mistakes? - Money Marketing

Tuesday, 01 January 2013
Categories: News, Regulation, Risk Profiling

With a particular focus on the financial advisory process, the FSA’s March 2011 final guidance report, ‘Assessing suitability: Establishing the risk a customer is willing to take and making a suitable investment selection’, set clear guidelines for advice suitability with regard to willingness and ability to take risk - risk tolerance and risk capacity, respectively. The paper followed on from a thematic review which found widespread inadequacies in the UK advice process. In more than half of the unsatisfactory reviews, unsuitability was primarily due to risk tolerance and/or risk capacity being mismanaged or miscalculated.

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How to Make Values Visible - Wall Street & Tech

Saturday, 01 December 2012
Categories: News, Risk Profiling, Technology

Yeske Buie adopts cloud-based analytics tool to capture, measure and visualise client risk tolerance.

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Dealing with Risk Part 1

Saturday, 01 December 2012
Categories: Audio & Video, Risk Profiling

Dealing with Risk: Scott Wenger, Editorial Director, Financial Planning magazine, interviews FinaMetrica cofounder, Geoff Davey. Part I: Risk required, risk capacity and risk tolerance.

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Dealing with Risk Part 2

Saturday, 01 December 2012
Categories: Audio & Video, Risk Profiling

Dealing with Risk: Scott Wenger, Editorial Director, Financial Planning magazine, interviews FinaMetrica cofounder, Geoff Davey. Part II: Changing perception and definition of risk.

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Valid and Reliable Risk Tolerance Assessment

Thursday, 01 November 2012
Categories: News, Psychometrics, Risk Profiling

This article examines what makes a good risk tolerance questionnaire: it has to be valid and reliable. A valid test measures what it purports to measure and a reliable test measures consistently, with a known and acceptable level of accuracy. He explains how psychometrics ensures validity and reliability, and how advisers can identify a good risk tolerance questionnaire.

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FinaMetrica Releases Version 2.0

Thursday, 25 October 2012
Categories: Press Release

Risk profiling specialist, FinaMetrica, today announced major enhancements to its risk tolerance report and supporting materials – based on feedback from 5,000 predominantly Australian, UK and US financial advisers.

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Typical Risk Profiling Mistakes - Money Management

Saturday, 01 September 2012
Categories: Advice, News, Risk Profiling

FinaMetrica founder Paul Resnik argues that risk profiling tools are all very well, but it is a financial adviser's ability to use those tools that really matters.

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Interview: FinaMetica’s Paul Resnik - FT Adviser

Wednesday, 01 August 2012
Categories: Advice, News, Risk Profiling

FinaMetrica’s Paul Resnik talks to Nick Reeve about how the world of financial advice is changing now more than ever.

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Body-Surfing and Investing - Advisor One

Sunday, 01 July 2012
Categories: Advice, News, Risk Profiling

Sometimes it can be easier to understand concepts that apply to financial risk-taking by looking at them in a different domain. Risk tolerance is domain specific, there being five domains: physical, social, health, ethical and financial. Let's look at an example of physical risk-taking.

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FinaMetrica Joins Forces with Margetts

Tuesday, 12 June 2012
Categories: News, Press Release

Risk profiling specialist, FinaMetrica, today announced the completion of a new initiative with Margetts Fund Management Ltd (‘Margetts’), providing descriptions of risk with historical returns for use with Margetts Risk Rated range of funds.

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Stagnant State of Risk Profiling - Asset

Friday, 01 June 2012
Categories: Advice, News, Regulation, Risk Profiling

Risk profiling is not being talked about enough considering investment risk is on everyone’s mind, and advisers are still struggling to properly understand their clients. In a recent Australian Securities and Investments Commission shadow shopping report, one finding stands out above all others: in 15 of the 16 examples where an adviser’s investigation of the client’s personal circumstances was categorised as poor, the overall quality of advice was also rated as poor.

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On the Stability of Risk Tolerance

Friday, 01 June 2012
Categories: Advice, Investments, Risk Profiling, White Paper

It is widely believed that (financial) risk tolerance is highly unstable and particularly subject to market conditions. However, through a series of independent studies there is now strong evidence that this view is incorrect. The most recent study clearly demonstrates the stability of risk tolerance across the 2003 to 2009 market rises and falls through detailed analysis of test/retest data, involving two tests of the same individuals, the first during the 2003-7 bull market and the second in the subsequent bear market. The study confirms the anecdotal evidence from FinaMetrica subscribers that clients' risk tolerance scores remained remarkably stable through the most turbulent market conditions in living memory.

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Risk Profiling: Art and Science - AUS version

Friday, 01 June 2012
Categories: Advice, Psychometrics, Risk Profiling, White Paper

Investment suitability is the foundation upon which good investment advice is built. Not only must the investment be suitable with regards to the investor's goals (risk required) but also with regard to her risk capacity and risk tolerance. Risk Profiling is the term commonly used to describe how advisers ensure Ensuring that investment recommendations are suitable with regard to these three aspects of risk. This paper explores the development of risk profiling, clarifies terminology, considers regulatory requirements, examines the processes and tools required, and highlights common adviser mistakes. Risk Profiling is a blend of art and science. The science lies in the tools the adviser uses. The art lies in the adviser's ability to use the tools effectively ...

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Risk Profiling: Art and Science - NZ version

Friday, 01 June 2012
Categories: Advice, Psychometrics, Risk Profiling, White Paper

Investment suitability is the foundation upon which good investment advice is built. Not only must the investment be suitable with regards to the investor's goals (risk required) but also with regard to her risk capacity and risk tolerance. Risk Profiling is the term commonly used to describe how advisers ensure Ensuring that investment recommendations are suitable with regard to these three aspects of risk. This paper explores the development of risk profiling, clarifies terminology, considers regulatory requirements, examines the processes and tools required, and highlights common adviser mistakes. Risk Profiling is a blend of art and science. The science lies in the tools the adviser uses. The art lies in the adviser's ability to use the tools effectively ...

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Risk Profiling: Art and Science - US version

Friday, 01 June 2012
Categories: Advice, Psychometrics, Risk Profiling, White Paper

Investment suitability is the foundation upon which good investment advice is built. Not only must the investment be suitable with regards to the investor's goals (risk required) but also with regard to her risk capacity and risk tolerance. Risk Profiling is the term commonly used to describe how advisers ensure Ensuring that investment recommendations are suitable with regard to these three aspects of risk. This paper explores the development of risk profiling, clarifies terminology, considers regulatory requirements, examines the processes and tools required, and highlights common adviser mistakes. Risk Profiling is a blend of art and science. The science lies in the tools the adviser uses. The art lies in the adviser's ability to use the tools effectively ...

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Risk Profiling: Art and Science - CAN version

Friday, 01 June 2012
Categories: Advice, Psychometrics, Risk Profiling, White Paper

Investment suitability is the foundation upon which good investment advice is built. Not only must the investment be suitable with regards to the investor's goals (risk required) but also with regard to her risk capacity and risk tolerance. Risk Profiling is the term commonly used to describe how advisers ensure Ensuring that investment recommendations are suitable with regard to these three aspects of risk. This paper explores the development of risk profiling, clarifies terminology, considers regulatory requirements, examines the processes and tools required, and highlights common adviser mistakes. Risk Profiling is a blend of art and science. The science lies in the tools the adviser uses. The art lies in the adviser's ability to use the tools effectively ...

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Risk Profiling: Art and Science - UK version

Friday, 01 June 2012
Categories: Advice, Psychometrics, Risk Profiling, White Paper

Investment suitability is the foundation upon which good investment advice is built. Not only must the investment be suitable with regards to the investor's goals (risk required) but also with regard to her risk capacity and risk tolerance. Risk Profiling is the term commonly used to describe how advisers ensure Ensuring that investment recommendations are suitable with regard to these three aspects of risk. This paper explores the development of risk profiling, clarifies terminology, considers regulatory requirements, examines the processes and tools required, and highlights common adviser mistakes. Risk Profiling is a blend of art and science. The science lies in the tools the adviser uses. The art lies in the adviser's ability to use the tools effectively ...

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Risk Profiling: Art and Science - ZA version

Friday, 01 June 2012
Categories: Advice, Psychometrics, Risk Profiling, White Paper

Investment suitability is the foundation upon which good investment advice is built. Not only must the investment be suitable with regards to the investor's goals (risk required) but also with regard to her risk capacity and risk tolerance. Risk Profiling is the term commonly used to describe how advisers ensure Ensuring that investment recommendations are suitable with regard to these three aspects of risk. This paper explores the development of risk profiling, clarifies terminology, considers regulatory requirements, examines the processes and tools required, and highlights common adviser mistakes. Risk Profiling is a blend of art and science. The science lies in the tools the adviser uses. The art lies in the adviser's ability to use the tools effectively ...

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How Much Risk Can You Manage? - The Wall Street Journal - Mar 2012

Thursday, 01 March 2012
Categories: Journal Article, News

How daring should you be when you do gamble? Or, in investing terms, how much risk should you take? Should you go "all in," putting all your investible assets into the stock market, or hedge your bets by putting, say, half in stocks and half in bonds?

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The Same Approach to Risk Will Mean Less Confused Clients - MoneyMarketing

Thursday, 01 March 2012
Categories: Advice, Investments, News, Risk Profiling

A major challenge for many investment advisers and consequently investment managers and others who provide support services to meet advisers' needs is a clear and coherent approach to investment suitability.

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10 Questions With Noteworthy People - Journal of Financial Planning

Wednesday, 01 February 2012
Categories: Journal Article, News

If you don’t already consider Geoff Davey a pioneer of the financial planning profession, you should. He began doing financial planning in his native Australia in 1975. After selling his share of the firm to his partners in the late 1980s, he homed in on risk tolerance. Since co-founding FinaMetrica, he’s earned an international reputation as a risk tolerance expert. You’ve likely heard him speak at financial planning conferences, or perhaps you use the FinaMetrica Risk Profiling system with your clients.

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Ten Emerging Trends in the UK's Financial Services Market

Friday, 01 July 2011
Categories: Other, Risk Profiling

FinaMetrica cofounder, Paul Resnik, is just back from a seven week trip to the United Kingdom. Paul spoke with several hundred industry participants in 12 cities. Almost all product and service suppliers are currently engaged in reframing their business proposition to take account of the impending regulatory changes or building to take advantage of the opportunities created by the failure of competitors. High-end IFAs in particular are significantly more optimistic about the future than most others. Many are further advanced on the journey to acceptable practice and some moving towards best practice. Most felt that the banks and life companies were at a disadvantage in terms of both momentum and public trust.

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How to Classify Clients Using Psychometrics - IFAOnline.co.uk - Jun 2011

Thursday, 30 June 2011
Categories: News, Psychometrics, Risk Profiling

The vast majority of financial advisers use some form of ‘risk’ questionnaire with their clients; usually one which has been sourced from their software supplier, compliance department, or which they have developed themselves.

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Risky Business - Financial Planning

Sunday, 01 May 2011
Categories: Advice, News, Risk Profiling

Since many financial advisors tend to think their interview skills and experience are all they need to judge clients' risk tolerance, few are inclined to use formal assessment tools. As we see it, this is a mistake. Judging a client's ability to accept possible losses is very difficult to discern in an interview alone. Planners can meet regulatory guidelines, avoid angry clients and lawsuits, and serve all their clients more effectively by using scientifically tested profiling tools.

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Tech Review: Is FinaMetrica worth a look? - IFAOnline.co.uk

Friday, 01 April 2011
Categories: News, Risk Profiling, Technology

Despite the obvious benefits from cross referrals, an accounting firm’s financial planning practice is often only able to engage with a small number of its staff. It seems many partners and senior managers fear risking professional and personal relationships because of the uncertainty around investment risk. They simply do not want to face clients who are unhappy about the planner’s advice because their investments have fallen—and as we all know, they will fall.

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Five Myths of Risk Tolerance and How To Understand Them Better

Friday, 01 April 2011
Categories: Other, Risk Profiling

Discussions about risk tolerance often include more fiction than fact. Cobus du Plessis from the Institute of Behavioural Finance, our South African business partner, succinctly exposes the five most common myths about risk tolerance.

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Increasing Cross Referrals and Profits - AICPA Planner Magazine

Tuesday, 01 March 2011
Categories: Advice, Couples, News, Risk Profiling

Despite the obvious benefits from cross referrals, an accounting firm’s financial planning practice is often only able to engage with a small number of its staff. It seems many partners and senior managers fear risking professional and personal relationships because of the uncertainty around investment risk. They simply do not want to face clients who are unhappy about the planner’s advice because their investments have fallen—and as we all know, they will fall.

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Linking Risk Tolerance to Portfolio Risk - AICPA Planner Magazine

Saturday, 01 January 2011
Categories: Advice, Investments, News, Risk Profiling

A client’s risk tolerance affects all financial decision making, but usually is most critical in the decision regarding a long-term investment strategy. Here the conventional wisdom is that the longer the term, the higher the risk that can and should be taken. However, a client with a low risk tolerance who takes on a high-risk strategy is inviting disaster

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FinaMetrica's Response to the Financial Services Authority's Guidance Consultation on Investment Advising

Saturday, 01 January 2011
Categories: Other, Regulation, Risk Profiling

FinaMetrica welcomes the FSA's guidance paper. To our knowledge it is the first serious attempt by any regulator to address the issues of an investor's willingness and ability to take risk. The paper makes a significant contribution to improving the quality of advice which is a starting point for the journey to a more secure investment world. Perhaps the most satisfactory aspect from FinaMetrica's perspective is that the FSA has identified the fundamental weaknesses in 9 of 11 industry-standard 'portfolio-picker' risk questionnaires.

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Effective Use of Technology - Financial Planning Journal (India)

Wednesday, 01 December 2010
Categories: Advice, Journal Article, News, Risk Profiling, Technology

With reliance on unscientific methods alone, many advisors may fail to help investors’ understand financial risk appropriately. the essence is to meaningfully establish investors’ investment expectations and in the current times technology is aiding the advisory processes, by providing more reliable and scientific tools, for accurate risk evaluation and for enabling right communications with the clients.

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Measuring Risk Tolerance - AICPA Planner Magazine

Monday, 01 November 2010
Categories: Advice, News, Psychometrics, Risk Profiling

The previous article (The Planner, Sept/Oct 2010) in this series, “Using Psychometrics to Assess Risk Tolerance,” argued that psychometrics, a blend of psychology and statistics, was the best methodology for assessing risk. Psychologists have spent more than 100 years developing psychometrics; yet the financial services industry is largely unaware of this discipline, which has had dire consequences for the accuracy of financial planners’ estimates of their clients’ risk tolerance.

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Assessing Risk Tolerance Scientifically - Financial Planning Journal (India)

Wednesday, 01 September 2010
Categories: Advice, Journal Article, News, Psychometrics, Risk Profiling

Today it is generally agreed that planners have a professional, ethical and legal obligation to assess their clients’ risk tolerance. However, from that point on there is little agreement about what exactly risk tolerance is and even less on how it should be assessed. Yet these are not two unknowns.

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Using Psychometrics to Access Risk Tolerance - AICPA Planner Magazine

Wednesday, 01 September 2010
Categories: Advice, News, Psychometrics, Risk Profiling

Financial planners have a professional, ethical, and legal obligation to assess their clients’ risk tolerance; yet,when we seek advice on how to measure risk tolerance, the answers are almost always drawn from finance and economics instead of psychology.

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Risk Perception and Risk Tolerance Changes Attributable to the 2008 Economic Crisis: A Subtle but Critical Difference - Journal of Financial Service Professionals

Thursday, 01 July 2010
Categories: Journal Article, Risk Profiling

Roszkowski and Davey examine the effect of the GFC on risk perception and risk tolerance, finding that the former changed significantly while the latter remained largely unchanged and concluding that behavioural change is best attributed to changes in risk perception.

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Determinants of Risk Tolerance in the Baby Boomer Cohort - Journal of Business & Economics Research

Saturday, 01 May 2010
Categories: Journal Article, Risk Profiling

This study examined the differences in financial risk tolerance among leading baby boomers and trailing baby boomers. The results of this study found that leading boomers were less risk tolerant than trailing boomers.

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Nonlinear Linkages Between Financial Risk Tolerance and Demographic Characteristics - Applied Economics Letters

Thursday, 01 October 2009
Categories: Journal Article, Risk Profiling

This paper explores the nonlinear linkage between financial risk tolerance and demographic characteristics. Tests support the nonlinear role of age, income and number of dependents.

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How Much Risk Can You Stand? - CNNMoney.com

Thursday, 01 October 2009
Categories: Advice, News, Risk Profiling

Measuring your ability to handle the ups and downs of stocks is hardly an exact science. But the work of some smart researchers can help you stay calm when the market is freaking out.

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Risky Business - Investments & Wealth Monitor

Thursday, 01 October 2009
Categories: Advice, News, Risk Profiling

Its a jungle out there and, while sometimes beautiful and even exhilarating, jungles also are risky. We talk to our clients all the time about risk, and compliance departments dedicate an enormous percentage of tehir time to ensuring that the investors understand the inherit risks in teh financial matters.

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Managing The Risky Business of Advice - AICPA Planner Magazine

Thursday, 01 October 2009
Categories: Advice, News, Risk Profiling

The planner and client share a common interest: neither one wants the relationship to end unhappily. Sloppy risk processes make planners vulnerable to claims by unhappy clients. It can be all too easy for a client who has lost money to say, “The strategy was too risky for me. My planner should have understood that. What’s more, I didn’t understand the risks because they weren’t explained properly. If they had been, I would not have proceeded.”

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Risk Tolerance Revisited – Some Surprises

Thursday, 01 October 2009
Categories: Risk Profiling, White Paper

We hear much talk of clients' risk tolerance collapsing in the current crisis ... but the research evidence disagrees. We know that behaviour has changed and many mistakenly believe that this is due to changes in risk tolerance. However, other factors appear to be the more likely causes. Advisers can benefit by having a more insightful understanding of what is happening with their clients in these difficult times.

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Global Financial Crisis Survey

Tuesday, 01 September 2009
Categories: Other, Risk Profiling

From December 2008 to July 2009, FinaMetrica surveyed advisers and their clients regarding the impact of the Global Financial Crisis (GFC). Analysis of the data confirms some accepted wisdoms but also reveals surprises, three of which are: - Clients appear to have an unrealistic expectation that their adviser can protect them from the vagaries of the market, - Advisers seem to have been too surprised by the market falls, given the market's relatively recent history. - Incontrovertible evidence of the stability of risk tolerance which, though not a surprise to us, does disprove accepted wisdom.

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Using Technology and Software for Service Delivery - Financial Planning Journal (India)

Tuesday, 01 September 2009
Categories: Advice, Journal Article, News, Risk Profiling, Technology

Financial Planning has come a long way in india. But to take a quantum leap from now on planners may have to harness the technology, which aids them to connect to their clients in a more effective and efficient manner.

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Risky Business - Journal of Financial Planning (India)

Tuesday, 01 September 2009
Categories: Advice, Journal Article, Psychometrics, Risk Profiling

The volatile markets or a gloomy economic outlook, may have given different dimensions to the client’s assessment of risk. Understanding and managing the four primary aspects of risk would help Financial Planners to give a better advice, build stronger relationships and secure their practice.

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The Three Faces of Risk Tolerance - Inside Information

Saturday, 01 August 2009
Categories: Advice, News, Risk Profiling

Are financial planning clients less risk tolerant than they were 12 months ago? How do you define that, and what do you do about it? In a presentation at the NorCal Conference in San Francisco, Michael Kitces offered a strong dose of clarity to the never-ending story of clients, markets and advisors.

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Best Practice in Financial Services - Marie Swift Interviews FinaMetrica Cofounder Geoff Davey

Friday, 01 May 2009
Categories: Audio & Video, Psychometrics, Risk Profiling

Marie Swift Interviews FinaMetrica Cofounder Geoff Davey.

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Risky Business

Friday, 01 May 2009
Categories: Risk Profiling, White Paper

Untangling the four primary aspects of risk – risk required, risk perceived, risk capacity and risk tolerance - will help you give better advice, build stronger relationships with clients and secure your practice. These four aspects are sometimes confused in advisers' minds, which leads to client confusion. In these challenging times, risk has become a key issue for clients. As investment markets have fallen, it is likely that risk required has increased and risk capacity has decreased; this presents an opportunity for advisers to add value by giving clients a clear framework to understand the full risk picture. With new clients, this can be done from the start of the relationship; with existing clients, the relationship can be enhanced by having a better informed risk conversation at the next review.

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Financial Planning at the Crossroads?

Sunday, 01 February 2009
Categories: Regulation, Risk Profiling, White Paper

The Storm crisis is revealing a number of fundamental flaws in the Australian financial services landscape. All of them impact upon the reputation of professional financial planners. There was no risk tolerance undertaken, the accounting for fees was possibly wrong, the relationship with lending institutions was questionable and the FPAs response probably inappropriate. Our clients almost invariably run their own practices and anything that damages planner's reputation hurts the FinaMetrica business. FinaMetrica co-founder Paul Resnik makes some suggestions as to what needs to be done.

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Time for Another Look at Client Risk Tolerance? - Journal of Financial Planning

Sunday, 01 February 2009
Categories: Journal Article, Risk Profiling

Ed McCarthy canvasses planners' views on assessing risk tolerance and the effectiveness of those assessments in the current climate. Additionally, the article presents the views of FinaMetrica's co-founder Geoff Davey and Kansas State University's Dr John Grable. (Linked with permission by the Financial Planning Association, Journal of Financial Planning, Feb 09, Ed McCarthy.)

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Effect of General Economic Mood on Investor Risk tolerance - Implications for Financial Planning - Finsia Journal of Applied Finance

Thursday, 01 January 2009
Categories: Investments, Journal Article, Risk Profiling

Lujer Santacruz examines the relationship between investor risk tolerance and general economic mood in the Australian context. The result shows that risk tolerance, as measured by a psychometric test, does not change with general economic mood, as measured by Westpac Melbourne Institute consumer sentiment index (CSI), over the period May 1998 to May 2007. The same result was also found for the All Ords. JASSA issue 1 2009, reproduced with permission of the author and Finsia - Financial Services Institute of Australasia.

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Risk Tolerance, Risk Profiling and the Financial Planning Process

Saturday, 01 November 2008
Categories: Psychometrics, Risk Profiling, White Paper

"The service of personal financial planning is provided by a personal financial planner to assist clients with their personal financial planning (ISO 22222 – Personal Financial Planning). Personal financial planning is a process designed to enable consumers to achieve their personal financial goals." By starting from this definition, which asserts a consumer focus, it is possible to deal more effectively with many financial planning issues particularly accountability and ongoing adviser remuneration.

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Knowing your clients’ risk tolerance is key to a meaningful and rewarding ongoing relationship

Sunday, 01 June 2008
Categories: Advice, Regulation, White Paper

"The service of personal financial planning is provided by a personal financial planner to assist clients with their personal financial planning (ISO 22222 – Personal Financial Planning). Personal financial planning is a process designed to enable consumers to achieve their personal financial goals." By starting from this definition, which asserts a consumer focus, it is possible to deal more effectively with many financial planning issues particularly accountability and ongoing adviser remuneration.

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On the Linkage between Financial Risk Tolerance and Risk Aversion - The Journal of Financial Research

Saturday, 01 March 2008
Categories: Journal Article, Risk Profiling

This paper reports on a study linking the psychology construct of financial risk tolerance with the finance construct of risk aversion. Financial risk tolerance as measured by a psychometric test was found to be a predictor of risk aversion as measured by lottery experiments involving a $20,000 kitty.

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Advising in a Volatile Market Series - Part 1

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

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Advising in a Volatile Market Series - Part 2 AUS

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

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Advising in a Volatile Market Series - Part 2 UK

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

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Advising in a Volatile Market Series - Part 2 US

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

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Advising in a Volatile Market Series - Part 3 AUS

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

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Advising in a Volatile Market Series - Part 3 UK

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

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Advising in a Volatile Market Series - Part 3 US

Tuesday, 01 January 2008
Categories: Advice, Risk Profiling, White Paper

FinaMetrica has been helping advisers better understand the challenges of advising in a volatile market with our 'Advising in a Volatile Market' series. The papers are practical and focus on immediately applicable practice tips. This series is a key example of applied behavioural finance, enabling best practice in financial risk tolerance understanding, assessment, management and education.

More...

Calculated Risk - IFAOnline

Saturday, 01 October 2005
Categories: News, Risk Profiling

Risk assessment and profiling the consumer’s attitude is today perhaps the most essential part of the ‘know your customer’ process as intermediaries are under pressure to show the client understands their own risk profile and the potential threats to their investments. Gareth Vorster investigates how financial advisers handle that process and the support tools now on offer.

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Insights from Psychology and Psychometrics on Measuring Risk Tolerance - Journal of Financial Planning

Friday, 01 April 2005
Categories: Journal Article, Psychometrics, Risk Profiling

This paper, co-written by two US academics, Dr Mike Roszkowski and Dr John Grable, and FinaMetrica's Co-founder, Geoff Davey focuses on the use of questionnaires in assessing risk tolerance. It introduces and illustrates basic concepts of good measurement principles and demonstrates where industry-standard questionnaires fail to measure up. Linked with permission by the Financial Planning Association, Journal of Financial Planning, Apr 2005, Roszkowski, Grable & Davey, Insights On Measuring Risk Tolerance From Psychology and Psychometrics.

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An Analysis of the Ability of Individuals to Predict Their Own Risk Tolerance - Journal of Business & Economics Research

Tuesday, 01 February 2005
Categories: Journal Article, Risk Profiling

This paper analyses the capability of individuals to accurately estimate risk tolerance. Using a database of respondent answers to a psychometrically valid questionnaire, calculated risk tolerance scores are compared to respondent self-assessed risk tolerance scores. In general, gender and education are the most significant factors in explaining the ability of individuals to accurately forecast their own risk tolerance score.

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Gender Stereotypes in Advisors' Clinical Judgments of Financial Risk Tolerance: Objects in the Mirror Are Closer than They Appear to Be - Journal of Behavioral Finance

Tuesday, 01 February 2005
Categories: Journal Article, Risk Profiling

In this US study of 183 financial advisors and 290 of their clients, the advisers’ clinical judgements i.e. their estimates were compared with the clients' actual risk tolerances as measured by a psychometric test. The results confirmed the general inaccuracy of advisers' clinical judgements – a correlation of only .41 with test scores. The results also showed strong evidence of gender stereotyping. The advisers over-estimated the risk tolerance of male clients and under-estimated the risk tolerance of female clients … and this was as true for female advisers as for male advisers. The authors suggest that advisers should not rely on their clinical judgements in satisfying their 'know-the-client' obligations but rather should utilise a valid and reliable test.

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Risk-profiling System - Research Magazine

Tuesday, 01 February 2005
Categories: News, Risk Profiling

Risk-profiling systems - those software products that give us a feel for how much risk our clients take - have always been around. And most advisors have tried a few here and there. but can you really understand your client by using these products?

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Estimating Risk Tolerance: The Degree of Accuracy and the Paramorphic Representations of the Estimate - Association for Financial Counseling and Planning Education

Saturday, 01 January 2005
Categories: Journal Article, Risk Profiling

Using a sample of 386 financial advisors and 458 of their clients, the study sought to determine how effective financial advisors and clients are at estimating risk-tolerance, and to test how well items from a risk tolerance test and demographic information can represent the judgmental process used to formulate these estimates.

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Promise of a Good Night's Sleep - Wealth and Retirement Planning

Monday, 01 November 2004
Categories: News, Risk Profiling

Prudent investment management requires a balance between a client’s risk profile and portfolio volatility — both must be determined to establish an appropriate investment policy. But certain aspects of a client’s total “risk profile” are confusing and can lead to faulty conclusions, potentially undermining your client relationship.

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Risk Tolerance Assessment in the Current Legal Environment

Wednesday, 01 September 2004
Categories: Advice, Regulation, Risk Profiling, White Paper

This September 2004 paper represents the most recent analysis of the legal requirements surrounding risk tolerance assessment.

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Assessing Risk Tolerance: A Micro-Behavioural Finance Case Study

Wednesday, 01 September 2004
Categories: Advice, Other, Psychometrics, Regulation, Risk Profiling

This chapter from The Investment Think Tank, Bloomberg Press, 2004, written by FinaMetrica's Co-founder and CEO, Geoff Davey examines what is known and understood, from academic and other research, about risk tolerance, how to assess it and how to apply that assessment in the planning process. It demonstrates how a scientific approach to managing behavioural finance issues at the individual level leads to better understanding of the issues and better outcomes for adviser and client.

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Ticking Time Bombs 1999-2004 - Portfolio Construction Forum Journal

Wednesday, 01 September 2004
Categories: Journal Article, Risk Profiling

Geoff Davey, FinaMetrica's Co-Founder, illustrates how the recent bear market, the rise of consumerism and the increased focus on professional standards has emphasised that advisers must both assess their clients' risk tolerance and have regard to those assessments when formulating advice.

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The Profession: SEC and Risk Tolerance - Inside Information

Sunday, 01 August 2004
Categories: News, Regulation, Risk Profiling

The new SEC compliance rules are in effect now, and you’ve already seen so many summaries of them than you probably want to hold a compliance manual burning party on the back lawn. But one area that isn’t receiving much attention is the requirement that each client’s portfolio must be aligned with his/her objectives, and that each client file must contain a plausible assessment of the client’s tolerance for investment risk.

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An Empirical Investigation of Personal Financial Risk Tolerance - Financial Services Review

Thursday, 01 January 2004
Categories: Journal Article, Risk Profiling

This paper from finance academics at Monash and RMIT Universities reports on the analysis of 20,000 completed risk profiles from the FinaMetrica database.

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Best Practice Process Standards

Saturday, 01 February 2003
Categories: Advice, Investments, Regulation, White Paper

This paper results from an invitation to the author to present to the Institute of Financial Planners of Hong Kong at their Forum on 12 February 2003.

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The Shadow Shopper Trial: Good News for Good Planners

Wednesday, 01 January 2003
Categories: Advice, Investments, Regulation, Risk Profiling, White Paper

Forget the doom and gloom of the shadow shopper trial. For good planners, this is one cloud with a silver lining. Focussing primarily on client dealings, here's what you can do today as a financial planner with: your clients, your dealer, your fund manager, your association and Standards Australia.

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Step Right Up - Bloomberg Wealth Manager

Sunday, 01 September 2002
Categories: News, Psychometrics, Risk Profiling

If nothing else, the recent gyrations in the stock market have taught us that of all the information advisers collect about their clients, probably the most important concerns their tolerance for risk. “Everything starts with risk and return,” says Michael Thompson, a market strategist at RiskMetrics Group, a New York firm that provides financial-risk-assessment software. "What advisers need to do at the outset is establish with an investor how much risk he’s willing to take, because at the end of the day that will determine what return is reasonable."

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Scientific Risk Profiling

Tuesday, 01 January 2002
Categories: Psychometrics, Risk Profiling, White Paper

FinaMetrica's submission to the risk profiling study conducted by the Professional Standards Committee of the Australian Financial Planning Association.

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Some Guidelines For Financial Planners In Measuring And Advising Clients About Risk Tolerance - Journal of Personal Finance

Tuesday, 01 January 2002
Categories: Journal Article, Psychometrics, Risk Profiling

This paper (jointly written by the head of the University of Queensland's Business School and a lecturer there, both of whom have degrees in psychology as well as their post-graduate qualifications), provides financial planners with an outline of the key issues to consider in developing an understanding of the risk tolerance of their clients.

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Investors Behaving Foolishly

Thursday, 01 March 2001
Categories: Investments, White Paper

A commentary on the implications for investors, investment clubs and financial advisers of studies conducted by Professor Terrance Odean.

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Financial Risk Tolerance: A State or Trait?

Wednesday, 01 November 2000
Categories: Investments, Other, Risk Profiling

This paper examines the robustness of financial risk tolerance as a psychological trait. One hundred and twenty-nine finance students each managed a portfolio on an on-line trading simulation for eight weeks. Financial risk tolerance was measured three times - pre, post and follow-up - and was found to be stable. The increase in financial experience and knowledge, as well as the occurrence of a major stock market crash during the trading period did not appear to affect the stability of risk tolerance. Generally males were found to be more risk tolerant than females, this was also reflected in their trading strategies. However, this had no impact on their ability to obtain desired outcomes. It was concluded that financial risk tolerance is better considered as a trait and not a state.

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Understanding and Assessing Financial Risk Tolerance: A Biological Perspective - Financial Analysts Journal

Thursday, 01 November 1990
Categories: Journal Article, Risk Profiling

Our understanding of financial risk tolerance can be extended by investigating the role of certain biological and psychological traits in the formation of economic preference.

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