Confidential Client Assessment

Your Investment Risk Profile

This assessment quantifies your risk profile across seven dimensions used by the world's leading wealth management institutions. It takes approximately 12–15 minutes to complete. Your responses are transmitted securely to your advisor upon submission.

7

Modules

~15

Minutes

100%

Confidential

Your full name

Your email address

Please enter your name and email to begin.

Module 1 of 7

Life Stage & Identity

Personal and family context that shapes every dimension of your risk profile — including your time horizon, income needs, and legacy objectives.

Personal details

Your age

Target retirement age

Life expectancy estimate

Marital status

Dependents

Anticipated major expenses

Question 1 of 2

Do you have any anticipated major expenses within the next 5 years? (e.g. property purchase, education fees, business investment, medical costs)

Yes — significant expenses exceeding 20% of my investable assets

Yes — moderate expenses representing 5–20% of investable assets

Minor or uncertain expenses only

No significant major expenses anticipated

Question 2 of 2

What is the primary purpose of this investment portfolio?

Capital preservation — protect existing wealth above all else

Income generation — I need regular distributions from this portfolio

Balanced growth — build wealth steadily over the long term

Wealth maximization — maximize long-term growth; accept short-term volatility

Legacy / wealth transfer — build and preserve wealth for heirs or philanthropy

Please complete all required fields and questions before continuing.

Module 2 of 7

Financial Capacity

Your objective financial ability to absorb losses — determined by hard facts, not emotions. Per the CFA Institute framework, this dimension often carries more weight than stated emotional tolerance.

Wealth & income

Total investable assets (USD) — excluding primary home

Total net worth (USD) — all assets included

Annual gross household income (USD)

Annual essential living expenses (USD)

Liabilities & liquidity

Total outstanding liabilities (USD)

Liquid emergency reserves (months of expenses)

Income quality & concentration risk

Question 1 of 2

How would you describe the stability and diversification of your income?

Highly variable or uncertain

Freelance, commission-only, startup, or business owner without stable distributions

Somewhat stable, but concentrated

Single employer or sector; some job risk

Stable salaried employment with benefits

Multiple stable income streams

Salary, rental income, pension, dividends — well diversified

Question 2 of 2

Do you have significant concentration in a single asset, company, or illiquid investment? (e.g. business equity, stock options, real estate, single stock)

Yes — over 50% of my net worth in one concentrated position

Yes — 20–50% concentrated, some diversification elsewhere

Minor concentration (below 20%)

No significant concentration risk — well diversified

Please provide income and assets, and answer both questions.

Module 3 of 7

Knowledge & Experience

Required by MiFID II, ESMA, and FINRA suitability rules globally. Investment knowledge affects how accurately you can assess your own risk tolerance — uninformed clients frequently overestimate their tolerance.

Question 1 of 4

How would you describe your overall investment knowledge?

Beginner

I know very little and rely entirely on professional advice

Basic

I understand deposits and simple funds, but not complex financial products

Intermediate

I understand equities, bonds, funds, and general portfolio theory

Advanced

I actively analyze investments and understand derivatives, alternatives, and structured products

Question 2 of 4

Which best describes your prior investing experience?

I have only used savings accounts or employer-managed pension contributions

I have invested in mutual funds or ETFs but haven't actively managed a portfolio

I have actively managed a diversified portfolio including individual securities for 3+ years

I have managed complex portfolios with alternatives, options, or international assets for 5+ years

Question 3 of 4 — Knowledge check

If your portfolio is 70% in equities and markets fall 30%, approximately how much would your total portfolio decline?

About 30%

About 21%

Correct — only the 70% equity portion is affected at full magnitude

About 15%

I am not sure

Question 4 of 4

Have you personally experienced a significant market downturn (e.g. 2001, 2008 financial crisis, 2020 COVID crash) with real money at stake?

No — I have not invested through a major market downturn

Yes — I panicked and sold some or all of my investments during the downturn

Yes — I held my positions and waited for recovery

Yes — I viewed the decline as an opportunity and invested more

Please answer all questions before continuing.

Module 4 of 7

Behavioral Loss Tolerance

Psychometric assessment based on the Grable-Lytton model and FinaMetrica methodology — the two most academically validated approaches in global wealth management. This measures your emotional, cognitive, and behavioral response to investment risk separately.

Question 1 of 6 — Reaction to loss

Your portfolio falls 25% in 3 months. Markets remain volatile with no clear recovery in sight. What would you do?

Sell everything and move to cash

I cannot tolerate further losses

Reduce equity exposure significantly and wait for stability

Hold my positions — market downturns are temporary

Invest more — market downturns are buying opportunities

Question 2 of 6 — Loss aversion calibration

Which outcome would you most prefer from a 5-year investment?

Guaranteed +12% total — no possibility of loss

70% chance of +35%, 30% chance of −8%

60% chance of +65%, 40% chance of −22%

50% chance of +120%, 50% chance of −40%

Question 3 of 6 — Emotional response

When you contemplate the possibility of losing a significant portion of your investment, how do you feel?

Very anxious

It would affect my sleep, relationships, and daily functioning

Uncomfortable but manageable

I would be unhappy but could cope

Mildly concerned

I trust the long-term outlook and would not panic

Calm and unbothered

I understand short-term volatility is a feature of investing, not a flaw

Question 4 of 6 — Risk perception

Investments that can rise significantly can also fall significantly. How do you view this type of investment?

Dangerous — the downside risk far outweighs the appeal of the upside

Concerning — I'd want only a small portion of my portfolio in such assets

Acceptable — I'd allocate meaningfully if the return potential is compelling

Attractive — higher volatility generally implies higher return potential

Question 5 of 6 — Speculative tendency

Have you ever made a speculative investment (individual stocks, crypto, private equity, leveraged products) expecting above-market returns?

Never — I only invest in diversified, professionally managed products

Rarely — one or two small experiments out of curiosity

Sometimes — I allocate a portion of my portfolio speculatively

Regularly — I actively seek high-return opportunities with concentrated bets

Question 6 of 6 — Regret aversion test

You chose a conservative fund returning 4%. A riskier fund you passed on returned 30%. How do you feel?

Deeply frustrated — I would likely switch to higher-risk strategies immediately

Disappointed but I accept my choice reflected my comfort level at the time

Mildly regretful, but I remind myself that risk and return are always linked

Indifferent — 4% achieved my objective; outcomes should not drive strategy

Please answer all questions before continuing.

Module 5 of 7

Goals & Return Requirements

Based on the UBS Liquidity / Longevity / Legacy framework and the CFA Institute goal-based investing standard. What this money needs to do determines how much risk you must take.

Retirement goal

Target portfolio value at retirement (USD)

Expected annual contributions to portfolio (USD)

Income needs from this portfolio

Question 1 of 3

How much of your retirement income do you expect to draw from this investment portfolio?

All of it — this portfolio is my primary retirement income source

Most of it — supplemented by a pension or Social Security

Some of it — I have other significant income sources

None — other sources fully cover my retirement needs

Question 2 of 3 — Legacy & wealth transfer

How important is it to leave a meaningful financial legacy to heirs or charitable causes?

Not important — I intend to fully consume my wealth in my lifetime

Somewhat important — I'd like to leave something if possible

Important — I am planning a meaningful inheritance or charitable gift

Critical — wealth transfer is a primary objective of my financial plan

Question 3 of 3 — Tax situation

How does your tax situation affect investment decisions?

High tax bracket — tax efficiency is critical; I need to minimize realized gains

Moderate taxes — tax-efficient investing is preferable but not critical

Low tax bracket — tax efficiency is a minor consideration

Tax-sheltered — most assets are in IRA / 401k / pension wrappers

Please answer all questions before continuing.

Module 6 of 7

Sustainability & Constraints

Required under MiFID II / ESMA sustainability guidelines (2022) and now standard practice at leading US wealth managers. Constraints narrow the investable universe and must be captured before allocation decisions are made.

Question 1 of 4 — ESG preferences

How important is it that your investments consider environmental, social, and governance (ESG) factors?

Not important — I prioritize returns and do not wish to restrict based on ESG factors

Somewhat important — I'd prefer ESG-aware funds if returns are comparable

Important — I want a meaningful ESG allocation and accept slightly lower returns

Critical — I want only investments meeting strict sustainability criteria

Question 2 of 4 — Sector exclusions

Do you have specific sectors you wish to exclude from your portfolio for ethical, religious, or personal reasons?

No exclusions — I am comfortable investing across all legal sectors

Minor exclusions

e.g. tobacco, weapons, gambling

Significant exclusions — multiple sectors are restricted

Faith-based investing — Sharia-compliant or equivalent framework

Question 3 of 4 — Liquidity requirements

How important is it that this portfolio remain liquid (quickly convertible to cash) at all times?

Critical — I may need significant access to capital within 1–2 years

Moderately important — I may need access within 3–5 years

Low priority — I don't anticipate needing this capital for 5–10 years

Not important — long-term capital; illiquid investments are acceptable

Question 4 of 4 — Legal & regulatory constraints

Are there any legal, regulatory, or professional restrictions on your investment activity?

Yes — significant restrictions apply

e.g. insider trading restrictions, trust deed limits, professional conduct rules

Minor restrictions in specific areas

No significant legal or regulatory restrictions

Please answer all questions before continuing.

Module 7 of 7

Verification & Self-Check

World-class assessments include a verification layer to detect inconsistencies between stated preferences and revealed behavior — a systematic bias documented extensively in CFA Institute and FinaMetrica academic research.

Question 1 of 4 — Overall self-assessment

Setting aside the previous questions — how would you personally categorize your risk appetite?

Conservative

Capital safety is my top priority

Moderately conservative

I lean cautious but accept modest risk

Moderate

Comfortable with a balanced growth approach

Moderately aggressive

Comfortable with equity-heavy portfolios

Aggressive

I seek maximum growth and accept high volatility

Question 2 of 4 — Decision-making style

When making important financial decisions, what best describes your natural approach?

I prefer certainty — I'll accept lower returns for more predictability

I weigh both sides carefully but tend toward caution when uncertain

I make balanced decisions, comfortable with calculated risk

I'm decisive and comfortable acting on analysis even under uncertainty

Question 3 of 4 — Maximum acceptable drawdown

What is the maximum portfolio decline you could tolerate over a 12-month period without abandoning your long-term strategy?

Less than 5%

5–15%

15–30%

Over 30% — I'm fully committed to the long-term thesis regardless

Question 4 of 4 — Conviction under pressure

Your portfolio declines 20% next year. Your advisor assures you the long-term investment thesis remains intact. What do you do?

Withdraw — I've lost confidence and need to protect what remains

Reduce allocation — I'd derisk and wait for a clear recovery signal

Hold — I trust my advisor's conviction and maintain my position

Add — I would increase my allocation at lower prices

By submitting this assessment, you confirm that your responses are accurate to the best of your knowledge, and you consent to your advisor receiving this information to assist in your investment planning.

Please answer all questions before submitting.

Risk Assessment Complete

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Recommended model portfolio allocation

Profile narrative

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Advisor next steps

1

Review this output with the client and confirm the profile narrative resonates — not just numerically, but emotionally.

2

Address all consistency flags above before finalizing allocation. Gaps between capacity and tolerance require discussion.

3

Discuss concentrated positions, liquidity sleeve sizing, and tax wrapper optimization as separate workstreams.

4

Formalize in an Investment Policy Statement (IPS) per CFA Institute standards, incorporating all constraints and objectives.

5

Schedule annual re-assessment — risk profiles evolve with life circumstances, market experience, and wealth accumulation.

This assessment applies the CFA Institute three-factor Investment Risk Profile framework (Risk Need · Risk-Taking Ability · Behavioral Loss Tolerance), the Grable-Lytton psychometric methodology, FinaMetrica's six behavioral sub-dimensions, MiFID II / ESMA suitability requirements (knowledge, experience, sustainability preferences), and the UBS Liquidity-Longevity-Legacy goal-layering framework. It is intended for use by licensed financial advisors as a structured input to the investment planning process. It does not constitute personalized investment advice and must be reviewed by a qualified advisor in the context of the client's complete financial picture, applicable tax laws, and jurisdiction. © Your Firm Name. Confidential.