3.2 Risk Profiling

This topic describes the systematic instruction to Risk Profiling screen.

Banks/ investment advisers have a practice of doing a Risk Profile of the prospective investor. A risk profile is an evaluation of an investor's attitude and ability to take risks. Risk profiling involves the assessment of investor psychological level with the volatility of capital markets. A risk profile is important to determine which asset should be allocated to an investor's portfolio.

A risk profiling involves the series of questionnaire and based on the answers assign a risk profile to the investor. The tolerance to risk is reflected in the Asset Allocation that the bank recommends to the investor. Aggressive investors who have high tolerance to equity usually have a high percentage of Equity in their allocation, conservative investors tend to have more of debt. The MF portfolio that the investor invests has to match his/ her asset allocation, which is based on risk profile.

Note:

The risk profile questionnaire, recommended asset allocation will be fetched from mutual fund processor. OBDX will display the questionnaire, capture the answers and pass them on to the mutual fund processor. Further, the computation of risk profile based on user provided answers will happen at mutual fund processors and will be communicated to OBDX which will display it to the user.

Pre-requisites

• Transaction access is provided to the Retail User.

Features Supported In Application

The module supports the following features:

• Risk Profile Assessment
• Edit Risk Profile

Navigation Path:

Perform the following navigation to access the Risk Profiling screen.

From the Dashboard, click Toggle menu, and then click Menu. From the Menu, then click Financial Management , and click Wealth Management . Under Wealth Management , and then click Start Investing , click Risk Profiling .

To calculate risk profile of a user:

Figure 3-11 Risk Profile

Description of "Figure 3-11 Risk Profile"

Note:

The fields which are marked as Required are mandatory.

For more information on fields, refer to the field description table.

Table 3-9 Risk Profile - Field Description

Field Name	Description
Fund Details	Fund Details Please select the investment account to do the risk profiling.
Investment Account	The investment account to which the current purchase order belongs.

1. Navigate to the above path.
   The Risk Profile screen appears.
2. From the Investment Account list, select the account from which user wants to purchase the funds.
3. Click Know your risk Profile.
   • The Risk Profile screen with set of questions appears.
   • Click Back to Wealth Overview to go to the Wealth Management Overview screen.

Figure 3-12 Risk Profile - Questions

Description of "Figure 3-12 Risk Profile - Questions"

Note:

The fields which are marked as Required are mandatory.

For more information on fields, refer to the field description table.

Table 3-10 Risk Profile - Questions - Field Description

Field Name	Description
Risk Profile - Questions	The set of questions asked to the user to assess the risk profiling.
Risk Profile - Answer	The fund house from which user intends to purchase the fund for current purchase order.

4. In the Risk Profile - Questions list, select the appropriate answers.
5. Click Next to continue.
   • The Risk Profile screen with next set of questions appears.
   • Click Back to Wealth Overview to go to the Wealth Management Overview screen.

Figure 3-13 Risk Profile - Questions

6. In the Risk Profile - Questions list, select the appropriate answers.
7. Click Next to continue.
   • The Risk Profile screen with next set of questions appears.
   • Click Back to navigate back to the previous screen.
   • Click Back to Wealth Overview to go to the Wealth Management Overview screen.

Figure 3-14 Risk Profile - Questions

Description of "Figure 3-14 Risk Profile - Questions"

8. In the Risk Profile - Questions list, select the appropriate answers.
9. Click Calculate Risk Profile.
   • The Risk Profile screen displaying the attitude of the user in a graphical form and the recommended allocation appears.
   • Click Back to navigate back to the previous screen.
   • Click Cancel to cancel the operation and navigate back to Dashboard.

Figure 3-15 Risk Profile

Description of "Figure 3-15 Risk Profile"

10. Perform anyone of the following actions:
    • Click Agree, if you agree with the risk profile.
    • Click Disagree, if you disagree with the risk profile. A pop up screen with options allowing the user to edit the risk profile or take the assessment again appears.
    • Click Cancel to cancel the transaction.
11. The Risk Profile Confirmation screen with success message appears.
    • Click Ok to complete the transaction.
    • Click Back to Wealth Overview to go to the Wealth Management Overview screen.
    • Click Go To Dashboard to go to the Dashboard screen.

• Edit Risk Profile
  This topic describes the systematic instruction to Edit Risk Profile screen. This option allows the user to edit his risk profile, as evaluated by the application.