- Consider attitude to risk of investor - this is specifically what the risk questionnaire is designed to do.
- Consider capacity for loss - this should be considered in addition to the questionnaire.
- Use a good quality risk questionnaire that has been validated, such as that provided by EV
- Ensure each client understands the product and investment
- Identify the client's investment objectives including the expected term and purpose of the investment
- Consider using a stochastic forecast to show what the risk means for an individual and their objectives.
Frequently Asked Questions