The joint offering will include FinaMetrica’s psychometric risk tolerance test and portfolio mappings services, along with RiXtrema’s instantaneous stress testing and portfolio applications to modify portfolio exposures and mitigate risk.
Monitoring differences between risk tolerance and portfolio risk scores will enable advisors and registered reps to provide portfolios to clients and have conversations about expectations. Advisors will be able to scenario-test their clients’ portfolios against traumatic events such as the Financial Crisis, compare the results against clients’ risk tolerance scores and financial capacity for loss, and immediately make necessary corrections, such as generating appropriate buy/sell instructions.
RiXtrema, founded in 2010, is a portfolio crash-testing company that helps advisors discuss risk with clients. FinaMetrica is an Australia-based company, with US operations, that specializes in risk tolerance and risk-related matters.
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