Risk Capacity - How it works

Risk Capacity is used to determine whether investors should increase or decrease risk relative to their Risk Tolerance.  If Risk Capacity is High it might be appropriate to increase the Suitable Risk Level (also known as Risk level on our API documentation) and if Risk Capacity is Low it might be sensible to reduce the Suitable Risk Level, relative to Risk Capacity. 

Investor Compass will automatically consider Risk Capacity when calculating Investors Suitable Risk Level. Advisers who are not using the Financial Circumstances Assessment need to make their own assessment of Risk Capacity and manually select a Suitable Risk Level.