Greg Davies at HUM London 2017
New vistas in risk profiling
At Humans Under Management London 2017, Greg Davies presented on the often-overlooked area of risk profiling in financial advice, drawing from over a decade of experience in behavioural finance.
The talk addresses the challenge advisers face in accurately assessing both their clients' risk tolerance and their own biases, emphasising the importance of objective profiling tools.
Key Points:
Recognise the distinction between risk tolerance and risk capacity, focusing on understanding clients' long-term needs rather than short-term reactions.
Implement 'decision prosthetics' to help advisers mitigate their own decision-making biases and provide better client service.
Understand the significance of clients' composure and the emotional aspects of investing, adjusting communication strategies accordingly.
Watching this video will equip financial advisers with practical insights to refine their risk profiling processes and enhance client relationships, ultimately leading to more informed investment decisions.
