How does our risk profiling work?

Our risk profiling process has been used by financial planning firms since 2005, to help identify both their clients’ attitude to risk and how much risk they can afford to take.

It is suited to the majority of individual adult UK investors and their partners. For those with significantly large investable assets, additional factors need to be taken into account, such as properties or privately held company shares that are significantly large in value.

There are six steps that financial planners typically follow when creating an investor risk profile.

  1. Review existing portfolio
  2. Assess attitude to risk
  3. Check consistency of answers
  4. Assess capacity for risk
  5. Confirm value at risk
  6. Match portfolio against goals
Web Profiling Process Diagram

These risk profiling steps help to build a deeper insight into your requirements. They ensure that the final outcome is an accurate and fair reflection of your risk profile as well as capacity to tolerate possible losses.