New Vistas in Risk Profiling
Title | New Vistas in Risk Profiling PDF eBook |
Author | Greg B. Davies |
Publisher | CFA Institute Research Foundation |
Pages | 32 |
Release | 2017-08-01 |
Genre | Business & Economics |
ISBN | 1944960244 |
Risk profiling is fraught with misunderstandings that lead to ill-advised approaches to determining suitable investment solutions for individuals. The author discusses how we should think about the crucial elements of (a) risk tolerance, (b) behavioural risk attitudes, and (c) risk capacity. He uses a simple thought experiment to examine a stripped-down investor situation and define the essential features and exact role of each of the components of an investor's overall risk profile. He examines options for eliciting and measuring risk tolerance and considers some promising avenues for future methods.
Investor Risk Profiling: An Overview
Title | Investor Risk Profiling: An Overview PDF eBook |
Author | Joachim Klement |
Publisher | CFA Institute Research Foundation |
Pages | 28 |
Release | 2015-02-26 |
Genre | Business & Economics |
ISBN | 1934667943 |
The current standard process of risk profiling through questionnaires is highly unreliable and typically explains less than 15% of the variation in risky assets between investors—mostly because the questionnaires focus on socio-economic variables and hypothetical scenarios. The existing research in risk profiling shows, however, that several factors can provide more accurate and reliable insights into the risk profile of investors. Among these factors are the lifetime experiences an investor has had, the financial decisions made in the past, and the influence of family and friends as well as advisers. By using these factors, practitioners can get a better understanding of their clients’ preferences in order to recommend suitable investment strategies and products.
Risk Profiling and Tolerance: Insights for the Private Wealth Manager
Title | Risk Profiling and Tolerance: Insights for the Private Wealth Manager PDF eBook |
Author | Joachim Klement |
Publisher | CFA Institute Research Foundation |
Pages | 150 |
Release | 2018-05-01 |
Genre | Business & Economics |
ISBN | 1944960473 |
If risk aversion and willingness to take on risk are driven by emotions and we as humans are bad at correctly identifying them, the finance profession has a serious challenge at hand—how to reliably identify the individual risk profile of a retail investor or high-net-worth individual. In this series of CFA Institute Research Foundation briefs, we have asked academics and practitioners to summarize the current state of knowledge about risk profiling in different key areas.
Risk Profiling through a Behavioral Finance Lens
Title | Risk Profiling through a Behavioral Finance Lens PDF eBook |
Author | Michael Pompian |
Publisher | CFA Institute Research Foundation |
Pages | 58 |
Release | 2016-03-03 |
Genre | Business & Economics |
ISBN | 193466782X |
This piece examines risk profiling through a behavioral finance lens. Behavioral finance attempts to understand and explain actual investor behavior, in contrast to theorizing about investor behavior. It differs from traditional (or standard) finance, which is based on assumptions of how investors and markets should behave. Much has been written about the tension that exists between the willingness to take risk and the ability to take risk. Risk appetite is the willingness to take risk and risk capacity is the ability to take risk. In the behavioral context, risk appetite and risk capacity are defined in terms of known risks and unknown risks. Irrational client behavior often occurs when a client experiences unknown risks. To aid in the advisory process, advisors can use Behavioral Investor Types to help make rapid yet insightful assessments of what type of investor they are dealing with before recommending an investment plan. With a better understanding of behavioral finance vis-à-vis risk taking, practitioners can enhance their understanding of client preferences and better inform their recommendations of investment strategies and products.
Investment Risk Profiling
Title | Investment Risk Profiling PDF eBook |
Author | Amy Hubble |
Publisher | |
Pages | |
Release | 2020 |
Genre | |
ISBN | 9781942713920 |
New Trends in Cancer for the 21st Century
Title | New Trends in Cancer for the 21st Century PDF eBook |
Author | Antonio Llombart-Bosch |
Publisher | Springer Science & Business Media |
Pages | 396 |
Release | 2006-09-28 |
Genre | Medical |
ISBN | 1402051336 |
This volume contains the lectures held at the International Symposium on Cancer "New Trends in Cancer for the 21st Century". Fundamental researchers, politicians and representatives from patient coalitions share their knowledge and interests as well as their concerns and experiences. Not only do these papers provide state-of-the-art information on cancer, they are also an opportunity to look at the problem from different points of view.
Science and Judgment in Risk Assessment
Title | Science and Judgment in Risk Assessment PDF eBook |
Author | National Research Council |
Publisher | National Academies Press |
Pages | 668 |
Release | 1994-01-01 |
Genre | Science |
ISBN | 030904894X |
The public depends on competent risk assessment from the federal government and the scientific community to grapple with the threat of pollution. When risk reports turn out to be overblownâ€"or when risks are overlookedâ€"public skepticism abounds. This comprehensive and readable book explores how the U.S. Environmental Protection Agency (EPA) can improve its risk assessment practices, with a focus on implementation of the 1990 Clean Air Act Amendments. With a wealth of detailed information, pertinent examples, and revealing analysis, the volume explores the "default option" and other basic concepts. It offers two views of EPA operations: The first examines how EPA currently assesses exposure to hazardous air pollutants, evaluates the toxicity of a substance, and characterizes the risk to the public. The second, more holistic, view explores how EPA can improve in several critical areas of risk assessment by focusing on cross-cutting themes and incorporating more scientific judgment. This comprehensive volume will be important to the EPA and other agencies, risk managers, environmental advocates, scientists, faculty, students, and concerned individuals.