2018 Industry Awards Winner 2018 Industry Awards Winner >

Why Some Risk Scores Can Be Risky For a Portfolio…

A risk score is supposed to be an objective, quantitative measurement of an investor’s true risk tolerance and is often used to appropriately align the risk in a portfolio.

But here’s the problem.

Most portfolio risk analysis software rely on 95% probability or Two Sigma Band, which is tech jargon to cover up its shortcoming. 

What about the other 5%?

In other words, you’re not getting full risk transparency on your client’s portfolio and there can be a mismatch in the risk a client is willing to tolerate vs the risk actually in their portfolio.

Scary, huh?

How can you understand your client’s true emotional biases or proactively engage in planning around big losses?

When you cannot set proper expectations, it can lead to costly mistakes, right?

That’s why we created the PRISM Score.

Our PRISM Score calculates each investment’s exact risk-reward position and assigns a numerical value.

It’s how you know if your client is invested correctly.

StratiFi is the only software with this key feature.

500+ advisors nationwide use it to eliminate trial and error, differentiate their service, and build trust with clients.

It’s how they secure 100% in AUM because clients don’t want half-baked analysis.

Take a quick test drive here and see for yourself!

Karan Motreja Author

I help make life easier for financial advisors. With our PRISM Ratings Tool, your clients can finally understand the risks associated within their portfolio, giving you the ability to take concrete action to lower these risks, while giving your clients peace of mind.

Additional Advisor Resources

Bob Veres features StratiFi in ‘Inside Information’ February 2022 Edition

Bob asks, “Is it really possible that a portfolio risk assessment tool for wealth managers could be as sophisticated as the algorithms that institutional teams are using?”

The Cash Hoarder Playbook for Advisors

Learn how to convince a cash hoarder to invest wisely.
  • Key behavior attributes of a cash hoarder
  • Tools to assess their risk profile and identify their motives
  • Strategies to overcome push-back
Skip to toolbar