As a professional adviser the risks you take in your business, particularly when advising investment clients, are likely to affect much more than just your PI premiums. Fortunately there is now an easy solution: a tool built using proven scientific and mathematical methods. The Investment Risk Profiler (IRP) has been carefully designed to help financial advisers assess an investors' appetite for risk, measured against their expectations of investment return. Using a series of mathematical assumptions, a “recommended” portfolio profile can then be produced which is shown in both numerical and pie-chart format.

Built by 1st, in conjunction with specialist consultancy, The Silent Partner, the IRP is now available as both a desktop and web-based solution, even giving you the freedom to use it on the move via a PDA or laptop.

Key Features

• Most risk analysis tools fail to link the output to a return expectation. This can lead to a client still believing that high returns can be achieved for low risk. The IRP removes this failure as tolerance to risk and return expectation scores are both used to arrive at an investment solution
• The IRP will flag concerns and/or decline recommendations where an investor sets an unrealistic goal and expects to achieve a high return for a correspondingly low risk
• The new tool also assesses how the client might respond behaviourally. In particular, the IRP judges whether the investor is likely to regret past investment decisions, where a more cautious investment approach should be taken

It creates a complete audit trail for the IFA and client, particularly useful given the increasing regulatory framework that advisers have to work within.