Andy Hart at HUM South Africa 2019
Informed Risk
At the Humans Under Management South Africa 2019 conference, Andy Hart presented on the concept of informed risk in financial advising, drawing from his extensive experience in the field. The talk focuses on the critical challenge of understanding and framing risk for clients. It addresses how financial advisers can help clients unpack their perceptions of risk and make informed investment decisions.
Key Points:
- Risk is often misunderstood; clients may equate risk with stock market investments, overlooking other financial realities.
- The 'uninformed risk scale' highlights common misconceptions, placing various financial items in context.
- The 'informed risk scale' introduces three flavours of risk: loss of capital, inflation, and volatility, emphasising their implications for investment strategies.
- Advisers are encouraged to frame risk correctly and focus on long-term, sustainable investment approaches.
Watching this video will equip financial advisers with practical insights to enhance client conversations about risk and improve client relationships, ultimately fostering more informed investment choices.
