The Fiduciary Standard in Risk Tolerance Assessment

Risk tolerance technology designed for fiduciaries, Tolerisk accelerates practice growth and reduces compliance risk by making the complex easy for advisors to explain and for clients to understand.

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The leading Investment Risk Tolerance Assessment tool for Advisors to better serve their clients.

Problems with Typical Risk Tolerance Exercises

Willingness vs. Ability to Take Risk

Problem

Traditional risk assessments focus mainly on personality and assess only the investor's willingness to accept risks.

Tolerisk solution

Tolerisk separately measures both a client's ability and willingness to take risks and scientifically incorporates them to provide actionable investment risk recommendations.

Validating Assumptions

Problem

Typical risk assessment tools often fail to validate client assumptions, potentially leading to advisors offering unrealistic advice about risk.

Tolerisk solution

Tolerisk incorporates annual second-to-die probabilities, evolving risk, dynamic inflation, and personality constraints. As a result, it scientifically calculates the probability of running out of money.

Key Drivers & Evolution

Problem

Clients often lack insight into the factors impacting their risk tolerance and its evolution over time.

Tolerisk solution

Tolerisk stress-tests all inputs and assumptions, identifying the key drivers of your client's risk tolerance and showing how it evolves over time and with life changes.

Understanding Gap

Problem

Clients struggle to understand broad risk descriptions or numerical outputs from proprietary scales, impacting their confidence in decisions.

Tolerisk solution

Tolerisk uses a standardized scale, based on the risk (long-term volatility) of a benchmark like stocks/bonds, making output easy to understand and compare with prior experience and model portfolios.

Categorical Outputs

Problem

Many risk assessments yield categorical outputs, making shifts between categories risky.

Tolerisk solution

Tolerisk Risk Assessment Software enables intentional, gradual adjustments to client-customized investment risk levels, thanks to its measurable and quantifiable Tolerisk score.

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4 Risk Tolerance Mistakes that are Jeopardizing Your Client Relationships

Every financial advisor has some type of Risk Tolerance Assessment process. The vast majority are too rudimentary, and merely designed to satisfy the most basic level of compliance. Shoring up your risk assessment process is critical for maintaining strong client relationships and fulfilling your fiduciary obligations.

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