Risk takes center stage Episode 8

Episode Summary

For years the relationship between investors and risk could be defined as complicated. Clients want to understand their risks to make better investment decisions, advisers need to understand their client’s reasoning but are often worried getting it wrong could cost them business. The race to offer risk assessment to clients has taken center stage, thanks in no small part to the pandemic that created almost unprecedented market conditions. Dr. Daniel Crosby of Orion, Aaron Klein of Riskalyze, and Jeff Schwantz of Morningstar look at risk assessment from all angles in a discussion with Nicole and Sean.

Episode Notes

In this episode you’ll learn:

• Increased interest in risk
• How biases of all kinds affect our interpretation of risk
• The need for advisers to offer risk assessment
• The technology tools helping advisers offer better and more appropriate risk measurements

 Related Article:  Fintech readies factor-based risk model for advisers

Related Article:  Morningstar aims to rethink risk tolerance with new tools

Related Article:  How to make risk management work for advisers

Guest Bios:

Jeff Schwantz is head of Morningstar’s advisor and wealth management solutions for North America. He leads strategic vision and execution of Morningstar’s solutions in support of broker dealers, registered investment advisors (RIAs), wealth management organizations, and online brokerage clients, collaborating closely with sales, marketing, product development, and client service to deliver Morningstar’s data, research, tools, analytics, and investment management services.

Aaron Klein’s career has largely been at the intersection of finance and technology. As co-founder and CEO at Riskalyze, he led the company to twice being named one of the world’s top 10 most innovative companies in finance by Fast Company Magazine. Aaron has served as a Sierra College Trustee, and in his spare time, he co-founded a school project for orphans and vulnerable children in Ethiopia. Investment News has honored him as one of the industry’s top 40 Under 40 executives.

As Orion’s Chief Behavioral Officer, Dr. Daniel Crosby is responsible for bringing behavioral tools, training, and technology to financial advisors to allow for the practical application of behavioral science. Crosby is a psychologist and behavioral finance expert who applies his study of market psychology to everything from financial production design to advisor-client engagement. He has more than 10 years of experience in the financial services industry and has published a number of bestselling books that serve as guides to building stronger advisor-client engagement with a focus on achieving better outcomes.