Client Risk Management Assessment Tool

Client Risk Management Assessment Tool

This tool helps you assess a client's risk tolerance level. Have your client answer the following questions:

1. How would you describe your investment knowledge?

Limited - I have little experience with investments Moderate - I understand basic investment concepts Good - I'm comfortable with most investment types Extensive - I have professional-level investment knowledge

2. How would you react if your portfolio lost 20% in one year?

Sell all investments - I can't tolerate losses Sell some investments - I'm uncomfortable with large losses Hold and wait for recovery - I understand markets fluctuate Invest more - I see it as a buying opportunity

3. What is your primary investment goal?

Preserve my capital - I don't want to lose money Income - I need regular payments Balanced growth and income Maximum growth - I'm willing to accept volatility

4. How long is your investment time horizon?

Less than 2 years 2-5 years 5-10 years More than 10 years

5. What percentage of your income do you save/invest?

Less than 5% 5-10% 10-20% More than 20%

Risk Assessment Results

About Risk Tolerance

Risk tolerance is an individual's ability and willingness to endure market volatility and potential losses in their investment portfolio.

Risk Categories:

• Conservative (5-10 points): Prefers safety over growth, accepts lower returns for stability
• Moderate (11-15 points): Seeks balance between growth and safety
• Aggressive (16-20 points): Willing to accept higher volatility for potentially greater returns