Advisors: What Is Your Risk Tolerance?

By Tony Vidler via

Asking financial advisers what THEIR risk tolerance is seems odd to many at first glance.

However, when contemplating what changes should be made in response to more regulatory reform this is the NEXT question which should be addressed after answering the “what do the new rules say I have to do?” question.

Clearly the first requirement when contemplating the impact of  law changes on our business is to make sure we set up the systems and revise the processes that are necessary to be compliant at least.  Compliance is the first objective…but it should not be the ultimate objective.

Moving beyond the necessary changes one must in order to run legally and professionally comply the evolution of an advice business can take a number of strategic directions, and it is perhaps the risk tolerance of the owner or principals which best determines the right choice.  The right choice of course may not be the path with the highest potential reward…which is exactly the same approach we counsel clients upon, isn’t it?

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