FinaMetrica Risk Profiling
17 February 2012
Prosperis Ltd has invested in a new, state of the art risk
profiling tool. The FinaMetrica facility is an on line scientific
assessment of an individual's tolerance of risk. So far, some 65
clients have completed the process and it is our intention to get
as many clients as possible to update their profile throughout the
year.
The FinaMetrica risk profiling system measures risk tolerance on
a scale of 0 to 100. Scores are normally distributed with a Mean of
50 and a Standard Deviation of 10. To make the scores and reports
more meaningful, the scale has been divided into seven segments.
Seven are needed to provide sufficient differentiation between
people at different points on the scale, particularly for those
with extremely low or extremely high risk tolerance. Each of the
segments is referred to as a Risk Group.
The Risk Group descriptions have been developed by analysing how
those whose scores fall into a particular group, typically answer
the questionnaire.
What this allows Prosperis to do in the future, is to make sure
that clients' risk tolerance is more closely understood. This is
vitally important in the future and we believe this tool will be a
great help to both us and our clients.