Risk Questionnaire
*To access the questionnaire, please see the link at the bottom of this page.*
What is investment risk?
Your risk tolerance is a measure of both your emotional and rational responses to changes in the value of your investments i.e. your ability to withstand losses. It is usually linked to your temperament, timeframe and financial circumstances.
Why assess risk?
In order to select the most appropriate investment strategy for our client’s, it is vital to understand your investment goals and risk tolerance.
How do we assess risk?
Espiene Limited use The Verbatim Planning Tool and Risk Profiler powered by Distribution Technology. The focus of this proven risk profiling process is to offer a more scientific way of assessing a client’s propensity to investment risk, which has more accurate categories of ‘attitude to risk’ than the most commonly used traditional labels of ‘Cautious’, ‘Balanced’ and ‘Adventurous’.
The initial risk score is based on your answers to a psychometric questionnaire designed by Oxford Risk Research Analysis (ORRA). Oxford Risk is an independent company linked to Oxford University, who are leading experts and specialists in psychometric testing and risk profiling.
The questionnaire has been designed to elicit an emotional response to risk rather than a pure factual one. None of your responses will have a direct bearing on the particular funds or products that may be recommended to you, but will be used as the basis for discussion and agreement regarding your final risk profile on which recommendations will be based.
Risk profiling process
1. Complete & submit the online questionnaire. It is important that you do so honesty and bearing in mind the questions relate to you generally rather than the particular investment you are considering. Your views about the particular investments you are considering will be taken into account in a later step. If you are in a financially dependant or interdependent relationship, both parties will be required to complete a separate questionnaire.
2. Once you have completed and returned the Questionnaire, we will assess this using a scoring system to gain an initial Risk Profile and produce a Risk Analysis report. This will include a description of the risk profile score together with an asset allocation commensurate with your profile and an indication of the potential maximum loss and gain value this may provide.
3. We will discuss your short and long term goals and objectives, investment experience and existing holdings, with you and consider the potential Loss and Gain Value at Risk figures relevant to the description suggested by your score. If you consider the losses as unaffordable, returns insufficient or otherwise unacceptable to you, we will hold further discussions and look at alternative levels of risk and Potential Loss and Gain for these levels until you find a level and values that you are comfortable with. All the potential losses and gains include broad brush charges.
4. Before deciding on a final risk profile, we will consider the term of which you wish to invest, the importance of the investment you are making in your overall financial circumstances and whether you can afford a sustained period of losses.
