Practical Client Risk Analysis

Risk is synonymous with uncertainty. The risk a person is willing to take is a result of his or her psychology, life experiences, social conventions, intelligence, and age amongst other factors. Where does that put you when you must gather information about the risk characteristics of a person and apply them to a product with its own risk profile? It puts you in a position in which information, analysis, and thought is required to arrive at appropriate answers.

If you have client-facing responsibilities for investments or insurance, you will come away from this course with a new appreciation for the role of risk and its repercussions.

• The role of disclosure to risk;
• The three measurements in a risk profile: tolerance, capacity, and need;
• The dilemma of applying risk assessment to decision-making.