Orion’s 3D Risk Profile goes beyond the traditional tolerance questionnaire. Instead, this revolutionary Risk Profile incorporates behavioral finance techniques that examine three dimensions of risk: risk capacity, risk tolerance, and risk composure.
Move beyond outdated 2D models with a more robust, three-dimensional, BeFi-driven approach that provides a more meaningful look into your client's real feelings about risk.
Measures the ability to take on risk based on age, current net worth, and financial understanding.
Assesses the willingness to take on more risk for greater reward.
Provides insight into a client’s expected behaviors during periods of market elation or stress.
What is Risk Composure?
Developed by Chief Behavioral Officer Dr. Daniel Crosby, Orion’s 3D Risk Profile adds a third dimension to the average risk tolerance questionnaire. On top of the typical risk capacity and risk tolerance, we look at risk composure, which measures your client's anxiety around volatility to provide insight into their expected behaviors driven by emotion during periods of market elation or stress.
Incorporating this BeFi-driven dimension into your risk tolerance assessment helps generate a complete understanding of a client’s risk tolerance and goals — strengthening the planning process and building better trust.