Assessing the Validity and Reliability of a Client Risk Profile Assessment Method

Client risk is one of the major decisions in wealth management. Many of the client risk assessment methods that are used in wealth management are in-house developed on an ad-hoc basis. The objective of this research is to assess the validity and reliability of the risk assessments methods developed by RiskMetrics. This study will be performed by analyzing the validity of the questionnaire and the reliability of the risk assessment result. The questionnaire will be assessed based on expert opinion and published literature. Multiple research methods, the RiskMetric method, expert opinion, and alternative client risk assessment methods will be used in case studies to observe the result. The results of this study will provide recommendations to enhance the current client risk assessment methods used in the wealth management industry.

Faculty Supervisor:

Rajeev Ruparathna;Minjie Zhang

Student:

Dilusha Kankanamge

Partner:

Risk Metrics Inc.

Discipline:

Engineering - civil

Sector:

Information and cultural industries

University:

University of Windsor