Solution introduction
You may be happy with both your risk-profiling and investment processes, but how can you trust they are being suitably and objectively combined for the best investor outcomes?
An investor's risk profile should be mapped to a level of suitable portfolio risk (and hence to asset allocations) using quantitative risk bands. The Oxford Risk approach is unique in applying a robust academic methodology to this process.
- An investment solution should be mapped to a risk profile that accounts for both risk tolerance and risk capacity, with additional constraints applied for potentially limiting behavioural traits.
- The solution-mapping process should be underpinned by an objective calculation built on utility functions, screened by common sense.
- Mapping risk profiles to portfolio risk levels is available as part of Oxford Risk’s full suitability process, or as a standalone option for mapping ready-made portfolio solutions to risk profiles.
