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Types of Risk Profiles Conservative: This means you want minimal volatility. Moderate: This is for people who want to earn a moderate to high return but dont want to take on too much risk. Aggressive: An aggressive portfolio seeks the highest return possible.
A risk profile example pertaining to risk-aversion would be of an individual who would rather maintain the value of their portfolio than aim for high or even moderate returns.
Based on these definitions, a risk statement should look something like: (Event that has an effect on objectives) caused by (cause/s) resulting in (consequence/s). An alternative version reads: (Event that has an effect on objectives) caused by (cause/s).
Steps to develop a risk profile Determine the Objective and the Scope. This will help you accurately identity and assess your risks. Gather Key Participants. This will help you collect good information. Scan your environment. Identify the Risks. Assess and Measure Risks. Develop Risk Response(s) Monitor and Report.
Types of risk profiles Risk portraitInvestment requirements Conservative Stable growth and/or a high level of income. Moderately conservative Fairly stable growth and/or a moderate level of income. Moderate No income required. Client can tolerate fluctuations in the anticipation of higher returns in the long-term.2 more rows
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