Methodology

1. Financial Personality

• Risk Tolerance
• Knowledge and Experience
• Composure
• What is a psychometric questionnaire and why is it used to assess Risk Tolerance?
• Confidence

2. Financial Circumstances

• Risk Capacity
• Does the tool take into account any personal details about customer profile as well as their responses to questions? (e.g. age, gender)

3. Suitable Risk Level

• How are the recommendations developed?
• Calculating Suitable Risk
• How do your tools use gamification techniques?
• Are there any assumptions built into the tool which could potentially affect outcomes?

4. Identifying Suitable Portfolios

• Projections
• What is investment risk? 
• Defining risk bands
• Measuring portfolio risk