Understanding and Managing Risk Profiles

Learning Team

Some of the functionality described in this article is available as part of our Zinfandel release and will not be available if your Practifi instance is not upgraded to this release.

Overview

The Risk Profile feature within Practifi provides the functionality for Advisors, Client Service, Compliance and Management users to complete a survey to determine the proper asset investment allocation for your Client's portfolio. Users can save multiple Risk Profiles to your Client's Household, Organization or Individual record to track their Risk Profile over several years with your firm.

System Administrators can enable or disable the Risk Profile feature within your Practifi instance. Please consult our Enabling Risk Profile article for enabling or disabling this feature.

Please note: If your firm utilizes the eMoney or MoneyGuidePro integration, you may not need the functionality provided by our Risk Profile feature. Reach out to your CSM with any questions on if this functionality is helpful for your firm.

Creating a Client's Risk Profile
Viewing a Client's Risk Profile
Managing Risk Profile Settings

Creating a Client's Risk Profile

To create a Risk Profile for a Client in your organization:

Navigate to the Client's Key Entity record.
On the record side panel, select the Risk Profile navigation icon.
Select the Create Risk Profile button to begin the Risk Profile creation on the Risk Profile record table.
Selecting this button will open a pop-up menu on your screen with the Risk Profile questionnaire. Enter the information specific to the Client in these questions and select Save to finalize the Risk Profile creation.
- Please note: The Risk Band will automatically generate based on the answers provided. Users can overwrite the Risk Band field information by entering the Risk Band information into the Override Risk Band field.

Viewing a Client's Risk Profile

To view a Client's Risk Profile:

Navigate to the Client's Key Entity record.
On the record side panel, select the Risk Profile navigation icon.
Select the hyperlinked Questionnaire Name to open the completed Risk Profile questionnaire.

Managing Risk Profile Settings

System Administrators can modify Risk Profile questions and Risk Band settings to suit your firm's needs and procedures.

Modifying Question Sets

Your Practifi organization comes pre-loaded with standard Risk Profile questions. You can modify these questions and add new questions to suit your firm's preferences for phrasing. To maintain version control, the system requires you to create a new question set to make changes to your firm's Risk Profile questionnaire.

To create a new question set:

Click the App Launcher located in the upper left-hand corner of Practifi.
Select the Settings app from the drop-down menu of apps available.
- Please note: Depending on the number of apps assigned to your profile, the Settings app may not display by default. If this app is not displaying, use the Search apps and items... search bar within the App Launcher to search for and select the Settings app.
Click the Navigation Menu and select Risk Profiles.
On the Risk Profiles page, click the New button.
On the New Question Set tab, the Name field is not editable. A name will be automatically generated when the question set is saved.
Enter a number in the Version field, or leave it blank to have this automatically populated upon saving.
Check the Active box.
Click Save.
Optionally, click the caret at the top of the Question Set record and select Import Default Questions. This will bring the standard risk profile questions into the question set to use as a template.
A warning message appears. Click Import.

Editing Questions

When creating a new question set, you can change the wording of a question and add or remove answers. To edit a question within a question set:

Click the hyperlinked Question Name in the Questions list view.
Selecting the Question Name will open a details page for the specific question. To edit the question, click the Edit button.
In the edit window, update the Description field, then click Save.
To edit a question's answer, click the hyperlinked Answer Name in the Answers list view.
On the Answer's details page, click the Edit button.
In the edit window, update the Name field, then click Save.
To add an answer to the question, click the New button in the Answers list view.
Enter the following information for the answer:
- Name - Enter the answer as you would like it to display within the questionnaire.
- Code - Give a unique value to the answer, e.g. ANSWER001.
- Order - Set the order in which you want the answer to appear within the answer drop-down menu, e.g., 1.00.
- Active - Check this box to have this answer active and available for selection within your organization.
- Score - Enter the value you want this answer to add to the client's Risk Profile, e.g. 3.00.
To delete an answer, click the caret in the answer's row, then select Delete.

Adding Questions

In addition to editing existing questions, you can add questions to your firm's questionnaire. Question sets support a maximum of 15 questions. To add a question to a question set:

On the Question Set record, click the New button in the Questions list view.
On the New Question tab, enter the following:
- Description - Enter the question as you would like it to be displayed in the questionnaire.
- Code - Give a unique value to the question, e.g. QUESTION001.
- Active - Check this checkbox to have this question enabled in your organization.
- Order - Set the order in which you want the question to appear within the questionnaire, e.g. 1.00.
Click Save.
Pressing Save will take you to the question's details page, where answers to the question can be added. To add an answer, select the New button in the Answers section.
Enter the following information for each answer:
- Name - Enter the answer as you would like it to display within the questionnaire.
- Code - Give a unique value to the answer, e.g. ANSWER001.
- Order - Set the order in which you want the answer to appear within the answer drop-down menu, e.g. 1.00.
- Active - Check this box to have this answer active and available for selection within your organization.
- Score - Enter the value that you would like this answer to add to the client's Risk Profile, e.g. 3.00.
Click Save to finalize the answer's creation, or click Save & New to save the current answer and begin the creation process again to create multiple answers at once.

Deleting Questions

To remove a question from a question set:

On the Question Set record page, click the caret on the question's row in the Questions list view, then select Delete.
A warning message appears. Click Delete to confirm you want to delete the question.

Editing Risk Bands

Your Practifi organization comes pre-loaded with set Risk Bands. These Risk Bands can be modified to suit your firm's procedures and needs. To edit existing Risk Band settings:

If not already within the Settings app, click the App Launcher located in the upper left-hand corner of Practifi.
Select the Settings app from the drop-down menu of apps available.
- Please note: Depending on the number of apps assigned to your profile, the Settings app may not display by default. If this app is not displaying, use the Search apps and items... search bar within the App Launcher to search for and select the Settings app.
Select the caret icon beside the Navigation Menu to open the drop-down menu of settings pages.
From the drop-down menu, select Risk Bands.
Select the caret icon located beside Recently Viewed to change the list view to All.
To edit an already existing Risk Band, select the hyperlinked Risk Band Name.
Select the Edit button located on the right-hand side.
Make any adjustments needed to the Risk Band and select Save to finalize any changes.

Adding Risk Bands

Risk Bands can be added to your organization in addition to the pre-loaded Risk Bands. It is important to note that the existing Risk Bands will need their Lowerband and Upperband fields modified to include the new Risk Band without overlap.

If not already on the Risk Band page within the Settings app, click the App Launcher located in the upper left-hand corner of Practifi.
Select the Settings app from the drop-down menu of apps available.
- Please note: Depending on the number of apps assigned to your profile, the Settings app may not display by default. If this app is not displaying, use the Search apps and items... search bar within the App Launcher to search for and select the Settings app.
Select the caret icon beside the Navigation Menu to open the drop-down menu of settings pages.
From the drop-down menu, select Risk Bands.
Select the caret icon located beside Recently Viewed to change the list view to All.
On the Risk Bands list view, select the New button located on the right-hand side to begin the creation process.
Enter the following:
- Risk Band Name - Enter the Risk Band how you would like it to display within Practifi.
- Code - Give a unique value to the answer. For example, "RBGROWTH".
- Lowerband - Enter the lowest value a Client would have from their questionnaire to qualify for this Risk Band.
- Active - Check this box to have this Risk Band active and available for selection within your organization.
- Upperband - Enter the highest value a Client would have from their questionnaire to qualify for this Risk Band.
Once this information is entered, select Save to finalize the Risk Bands creation. Select Save & New to save the current Risk Band and begin the creation process again to create multiple Risk Bands at once.