KIDs: How using risk-based communications can reduce sales friction

clock • 3 min read

Financial consultant Russell Beaumont discusses how an attitude-to-risk assessment for retail investors can also tell us a lot about the risk personality of the investor - how they think and communicate about financial risk as well as their risk appetite

Plenty of effort has gone into testing the contents of financial communications, trying to give enough information so that clients know what they're getting into, but not so much as to put them off.  The content and layout of the Key Information Document (KID) will be largely prescribed by legislation. The assumption is that customers, presented with suitably summarised key information, make appropriate decisions.   But that is only half the picture - determining a customer's risk personality can help smooth the process too. Risk-taking behaviour Psychologists PCL identify two ke...

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