Risk & Behavioral Profile is our practical behavioral finance module designed to help you better understand investor behavior. It breaks investor behavior into the following key areas:
- Investor type, such as passive investor, trend follower, or contrarian
- Behavioral biases, including loss aversion, overconfidence, and herding
- Financial IQ, which assesses knowledge of compounding, diversification, market timing, and more
Through a series of mini-questionnaires, the Risk & Behavioral Profile provides a structured approach to applying behavioral finance—helping you gain deeper insight into your clients while enabling clients to better understand themselves.
All behavioral factors are combined into the Behavioral Risk Index™, a single score that reflects a client’s tendency toward irrational investment behavior.
We also offer a specialized tool designed to better support and protect baby boomer clients. See here for details.
Accessing Questionnaires
If you are meeting with clients, you can access the questionnaire results from Risk & Behavioral Profile page.
To access, open the client household and navigate to Risk → Risk & Behavioral Profile:
Reviewing Results
From the Risk & Behavioral Profile, select History then click the + to see the summary of the questionnaire results.
Behavior Risk Index™
The Behavior Risk Index™ is a score from 1 to 10 that indicates an investor’s behavioral risk—the likelihood of making irrational investment decisions.
The score is color-coded to reflect the level of risk. When you hover over the number, the top three contributing factors are displayed.
