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👉 This feature requires Administrative Tool access
Overview
The AdviserLogic Custom Risk Profile allows you to create and tailor your own risk profiling questionnaire, providing flexibility in assessing your clients' investment preferences, risk tolerance, and financial goals. This profile is directly used in Cashflow projections and Digital Advice scenarios, ensuring that investment recommendations align with the unique needs of each client.
Why Use a Custom Risk Profile?
✔ Fully Customisable – Design your own risk questionnaire to reflect your advice approach.
✔ Integrated into Cashflow & Digital Advice – Ensures investment strategies match your client’s risk profile.
✔ Greater Control – Adjust scoring and categories based on client discussions.
✔ Consistency & Compliance – Maintain a structured approach while meeting regulatory requirements.
By setting up a custom risk profile, you ensure that your financial advice and investment recommendations are tailored to your practice’s methodology and client preferences.
📌 Note
To learn how to set up the Morningstar Risk Profiler powered by FinaMetrica, please follow the dedicated instructions for that risk profiling tool.
This guide focuses on creating a custom risk profile questionnaire within AdviserLogic.
📌 Important Note
To use your Custom AdviserLogic Risk Profile, ensure that the Morningstar Risk Profiler - Powered by FinaMetrica is toggled off before applying it to clients.
Create Risk Profile in AdviserLogic
You can create your Risk Profile questionnaire by navigating to Tools > Administrative Tools > Practice Management > Risk Profile Setup.
Select Add from the top right of the window.
Enter a Questionnaire Name (and an optional Description) and Save.
📌Note
If you have already selected a pre-existing questionnaire, select "Add" from the top-right corner of the window. This action will clear the Questionnaire Name and Description fields at the bottom of the page, allowing you to create a new custom risk profile.
A confirmation prompt will show and your risk profile will show under the Existing Questionnaires list.
Select your new entry under the Existing Questionnaires heading to activate it. This will reveal three new links at the bottom of the page, allowing you to proceed with further customisation and configuration.
Add New Questions
Edit Questions
Risk Profiles
Select Risk Profiles to access the risk profile setup screen. Here, you can create multiple new profiles as needed and define the asset allocations for each profile to align with your investment strategy.
Enter the Profile Name in the designated field to create a new risk profile.
The Lower and Upper threshold fields allow you to link your Risk Profiles to the results of your client's questionnaire - these are not mandatory, and can be set up later if required.
Enter the Strategic Asset Allocation, and also the lower and higher ranges of this if applicable, and the TAA if required.
The bottom of the window allows you to link these Risk Profiles to a Model Portfolio, however, this is not required.
Profile Name | Enter the Profile Name to define the custom risk profile. |
Lower Threshold | Define the minimum risk tolerance score required for this profile.
📌 Note This Threshold is used by AdviserLogic to automatically assign a Risk Profile once the questions and scored responses are applied to the client's risk assessment. |
Higher Threshold | Define the maximum risk tolerance score for this profile.
📌 Note This Threshold is used by AdviserLogic to automatically assign a Risk Profile once the questions and scored responses are applied to the client's risk assessment. |
Income Rate (%) | Enter the expected annual income return from the portfolio. |
Growth Rate (%) | Input the expected growth return from capital appreciation. |
Franked Rate (%) | Specify the percentage of franked income expected from dividends. |
Tax-Free (%) | Enter the portion of income that is tax-free. |
Asset Allocation
Strategic Asset Allocation | Define the long-term target allocation for each asset class. |
Lower SAA | Set the minimum allocation range allowed for each asset class. |
Higher SAA | Set the maximum allocation range allowed for each asset class. |
Tactical Asset Allocation | Enter any short-term adjustments to asset allocation. |
Total Allocation (%) | Ensure that the total of all asset classes equals 100%. |
Matching Model Portfolios * Optional
Model Portfolio for Small Balance Wrap | Select a pre-defined model portfolio for small balance wrap accounts. |
Model Portfolio for Large Balance Wrap | Select a pre-defined model portfolio for large balance wrap accounts. |
Model Portfolio for Small Balance Wrap (Super) | Assign a model portfolio specifically for small super wrap accounts. |
Model Portfolio for Large Balance Wrap (Super) | Assign a model portfolio specifically for large super wrap accounts. |
📌 Final Steps
Ensure all required fields are completed.
Check that asset allocations total 100%.
Save the risk profile for use in Cashflow and Digital Advice scenarios.
Once you have added the required risk profile attributes, scroll down to the bottom of the page and Save.
The Risk Profile will now show under the Existing Profiles heading at the top of the window.
To add another Risk Profile, select Add and repeat the previous steps, including entering the Profile Name, Asset Allocation, Risk Profile Rates, and Thresholds, as necessary.
📌 Important Note
Selecting Add will clear the form from the previously selected/created Risk Profile.
✔ Ensure all fields are vacant before adding a new risk profile, or you may accidentally edit an existing one.
The Risk profiles will show at the top of the window under the Existing profiles heading.
👉To Edit a risk profile click on it and change the necessary values - The risk profile selected will show in the Name field.
You can now select these options on client accounts via the Client Record > Fact Find > Financial > Risk Profiles
Select the newly created Questionnaire, then choose the created Risk Profile from the dropdown options to apply it.
Selecting the Set as default tickbox will apply the risk profile to the client's Superannuation Risk profile.
If this risk profile is different click into the client's Superannuation Risk Profile Tab and repeat the instructions.
Custom Risk Profile
If your client's needs don't fit into the created risk profiles you have the option to choose a custom option and manually enter the Asset allocation information.
To add a list of questions to determine the Risk Profile, follow the Create Questionnaire instructions below.
Create Questionnaire to Automatically Assign the Risk Profile
If you want to incorporate a full questionnaire, you can do so by selecting "Add New Questions" from the Risk Profile Setup page.
This allows you to:
Add custom questions to assess risk tolerance.
Create multiple answer options, each with an assigned score.
Set Thresholds to enable AdviserLogic to automatically determine the appropriate Risk Profile based on the total score of a completed questionnaire.
Create a question with scored answer responses that correspond to the threshold ranges set in the previously created Risk Profiles to ensure accurate risk classification.
Questionnaire Fields & Explanations
The table below explains each field in the AdviserLogic Risk Profile Questionnaire Setup, including how they work and their relationship to scores and thresholds.
Field | Description | How It Relates to Risk Profile & Thresholds |
Question | The risk-related question presented to the client. | The client's response will contribute to their total risk score. |
Notes | Additional information or context for the question. | Provides clarity on how the question relates to investment risk. |
Image | Option to upload an image for the question. | Can be used to visually illustrate risk concepts. |
Image Tag | Label or description for the uploaded image. | Helps identify and organize visual elements within the questionnaire. |
Answer Choices | Multiple response options for the client to choose from. | Each answer is assigned a score, which determines the total risk score. |
Score | A numerical value assigned to each answer option. | Higher scores indicate a higher risk tolerance, which will be compared to thresholds. |
Thresholds | Predefined minimum and maximum score ranges for each risk profile. | The client’s total score is matched against these thresholds to determine their risk profile. |
Total Score Calculation | The sum of all selected answer scores. | This final score is compared to the risk profile thresholds to classify the client. |
Add Another Question | Option to include more questions to refine the risk assessment. | More questions improve accuracy by capturing a comprehensive view of the client’s risk tolerance. |
📌 How Scores & Thresholds Work Together:
Each answer has a score that contributes to the client’s total risk score.
The total risk score is then compared against the predefined thresholds for each risk profile.
If the total score falls within a threshold range, the system automatically assigns the corresponding risk profile.
Example
The following question and answer Examples align with the threshold ranges for the previously created risk profiles (Moderate & Aggressive) in AdviserLogic.
Question:
"How comfortable are you with investment risk when seeking higher returns?"
Answer Choices & Scoring (Aligned to Risk Profile Thresholds)
Answer Choice | Score | Aligned Risk Profile |
"I want my investments to be as safe as possible, even if it means lower returns." | 30 | Moderate (Lower Threshold: 30 – 45) |
"I prefer a stable investment with some risk to achieve moderate returns." | 45 | Moderate (Higher Threshold: 55 – 65) |
"I can tolerate short-term losses if it means better long-term growth." | 60 | Aggressive (Lower Threshold: 65 – 75) |
"I am comfortable with market fluctuations and aim for the highest possible returns." | 75 | Aggressive (Higher Threshold: 85 – 100) |
📌 How This Works in AdviserLogic:
Client selects an answer, which is assigned a score.
The total score is calculated after all questions are answered.
AdviserLogic compares the total score to the risk profile thresholds and assigns the appropriate risk profile.
Once you have aligned a question and its scored answer responses, tick the Add another question after saving this one checkbox before selecting Save to create an additional question.
Adjusting Questions & Scoring for Accurate Risk Profile Results
If Risk Profiles do not return results or the outcomes are not as expected, you may need to adjust the questions and scoring.
📌 Troubleshooting & Adjustments:
✔ Check the Score Ranges – Ensure the total score thresholds align with the Risk Profile bands set in AdviserLogic. If the client’s score falls outside the defined range, no profile may be assigned.
✔ Balance Scoring Distribution – Ensure the answer scores are spread evenly across the risk spectrum. If all answers are too closely scored, profiles may not differentiate effectively.
✔ Adjust Answer Options – If most clients are getting a profile that seems too aggressive or conservative, modify answer choices to create a more accurate reflection of risk tolerance.
✔ Increase Question Variety – Ensure the questionnaire covers multiple aspects of risk, such as investment experience, time horizon, and risk-reward trade-offs.
✔ Test Different Client Scenarios – Run the questionnaire using sample clients across different risk tolerances to see if results align with expectations.
✔ Review with a Colleague – Have another adviser review the questions and scoring for consistency and relevance.
📌 Tip
Making incremental adjustments and testing results with real client scenarios can help fine-tune the risk profile accuracy.
Editing the Questionnaire
To edit questions in the questionnaire, select the Edit Question link from the Risk Profile selection page.
The questionnaire will open with the added questions displayed in the top section, where you can make edits if needed. The bottom section will show the corresponding answers and assigned scores, allowing for adjustments.
To edit a question, select the question from the top section, the question will show in the Question field where it can be adjusted. Select Save to save any changes or Delete to delete the question.
To edit an answer or scoring, select the question from the top section that the answer relates to.
Find and select the answer to be adjusted in the bottom section.
The answer will show in the Answer field, and the current score will be displayed in the Score field. Make the necessary adjustments to the answer or score. Select the Save button at the bottom to apply the changes or Delete to delete the answer.
Assigning Risk Profile Questions During a Client Assessment
To complete the Risk Profile Questionnaire with a client during a review meeting or assessment, navigate to Fact Find > Financial from the client’s record.
Choose the Risk Profile Questionnaire from the dropdown menu.
Select Click Here to Evaluate located under the Risk Profile field to begin the assessment.
Benefits of Running the Questionnaire in a Client Meeting:
✔ Engages the client in the risk assessment process for better understanding.
✔ Allows real-time discussion of investment goals and risk tolerance.
✔ Ensures responses reflect the client’s current financial situation and objectives.
✔ Provides instant feedback on their risk profile and potential investment strategy adjustments.
📌 Tip
This process helps clients make more informed decisions, strengthening trust and compliance in financial planning.
If your Risk profile questionnaire returns no risk profile it is recommended you edit the scoring by following the edit Risk profile Questions instructions.
Selecting the Set as default tickbox will apply the risk profile to the client's Superannuation Risk profile.
If this risk profile is different click into the client's Superannuation Risk Profile Tab and repeat the instructions.