Don't be chicken when it comes to talking about risk

In any market, the importance of matching investments to a client's attitude to risk remains paramount. However, discussing the concept of gain and loss can prove difficult for advisers and clients may not fully understand the risks they are taking. Documenting this discussion is essential and advisers who follow a robust risk-profiling process will have clients who are prepared for both the gains and the losses made and who ultimately are happy with the service they receive. A short anecdote gives insight on how the human brain reacts to positive and negative consequences. My wife re...