June 9, 2025

Risk profiling tools have become increasingly prevalent in the financial advisory landscape. They offer a structured way to assess a client’s attitude towards risk, aiming to categorize them into neat boxes like “cautious,” “moderate,” or “adventurous.” While these tools can be useful in initiating discussions and providing a framework, it’s crucial to understand their advantages, limitations, and, most importantly, how they fit into the broader context of comprehensive financial planning.