Our guide to assessing risk types

Provision of financial advice and management is a knowledge-based practice and, in a world where financial services and investment products grow ever more complex, most IFAs will have enough to do keeping up with market trends, red tape, legislation and good practice guidelines. Yet, they are required to assess each client’s propensity for risk. Poor practices have already been highlighted by the FSA, which between 2008 and 2010 rated more than 50% of the files they reviewed as “unsuitable” due to shortcomings in the way the customers’ attitude to risk was assessed. Pitfalls of people...