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Understanding Your Client's Risk Profile
VRL Financial News Publishing, Jan 2009
Creating a consistently excellent customer experience increases client retention and ultimately produces a profitable return measured through performance criteria including total revenue growth, profit per client and share of wallet won.
This report focuses on improving the output of relationship advisers through maximising the brand experience that they offer to clients, by giving them a framework from which to understand their client's risk profile.
The Bernard Madoff fraud capped a period of severe damage to wealth management brands. The industry has suffered an estimated loss of $50 billion, involving those at the top of the industry the leading wealth managers. As plaintiffs seek out wealthy targets that might be prepared to pay up to defend their brand, the list of targets has extended to custodians and others who conceivably can be convicted of negligence. Finally, and perhaps most important, none of the sector's regulators or participants blew the whistle on what now appears to be an obvious example of potential fraud.
For an industry that is all about people this and similar events have been very damaging at a time when it is already confronted by strategic issues, in particular falling revenues as the value of assets under management fall in line with the drop in equity prices. Recent research concludes that, over the past decade, cash had outperformed all other asset classes - not a good advertisement for paying for advice.
In an increasingly competitive wealth management universe, the winners will largely be those who can attract, support and retain superior client-facing officers. It is difficult to cite another sector where the firms success is so tightly linked to the capabilities of the relationship manager.
The winners will be the organisations that create the strongest links between advisor and client in a period of near-unparalleled turmoil in global wealth markets.
Read this report to:
- Find out why profiling your client's risk is important
- Understand client behaviour
- Gain an overview of the major risk influences
- Follow trends in client risk behaviour
- Read risk profiling case studies
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