New Vistas In Risk Profiling

Risk profiling is fraught with misunderstandings that lead to ill-advised approaches to determining suitable investment solutions for individuals. The author discusses how we should think about the crucial elements of (a) risk tolerance, (b) behavioural risk attitudes, and (c) risk capacity. He uses a simple thought experiment to examine a stripped-down investor situation and define the essential features and exact role of each of the components of an investor's overall risk profile. He examines options for eliciting and measuring risk tolerance and considers some promising avenues for future methods.

The current standard process of risk profiling through questionnaires is highly unreliable and typically explains less than 15% of the variation in risky assets between investors—mostly because the questionnaires focus on socio-economic variables and hypothetical scenarios. The existing research in risk profiling shows, however, that several factors can provide more accurate and reliable insights into the risk profile of investors. Among these factors are the lifetime experiences an investor has had, the financial decisions made in the past, and the influence of family and friends as well as advisers. By using these factors, practitioners can get a better understanding of their clients’ preferences in order to recommend suitable investment strategies and products.

If risk aversion and willingness to take on risk are driven by emotions and we as humans are bad at correctly identifying them, the finance profession has a serious challenge at hand—how to reliably identify the individual risk profile of a retail investor or high-net-worth individual. In this series of CFA Institute Research Foundation briefs, we have asked academics and practitioners to summarize the current state of knowledge about risk profiling in different key areas.

This piece examines risk profiling through a behavioral finance lens. Behavioral finance attempts to understand and explain actual investor behavior, in contrast to theorizing about investor behavior. It differs from traditional (or standard) finance, which is based on assumptions of how investors and markets should behave. Much has been written about the tension that exists between the willingness to take risk and the ability to take risk. Risk appetite is the willingness to take risk and risk capacity is the ability to take risk. In the behavioral context, risk appetite and risk capacity are defined in terms of known risks and unknown risks. Irrational client behavior often occurs when a client experiences unknown risks. To aid in the advisory process, advisors can use Behavioral Investor Types to help make rapid yet insightful assessments of what type of investor they are dealing with before recommending an investment plan. With a better understanding of behavioral finance vis-à-vis risk taking, practitioners can enhance their understanding of client preferences and better inform their recommendations of investment strategies and products.

Based on the author's 20 years of teaching, Risk Analysis in Engineering: Techniques, Tools, and Trends presents an engineering approach to probabilistic risk analysis (PRA). It emphasizes methods for comprehensive PRA studies, including techniques for risk management. The author assumes little or no prior knowledge of risk analysis on the p

This volume contains the lectures held at the International Symposium on Cancer "New Trends in Cancer for the 21st Century". Fundamental researchers, politicians and representatives from patient coalitions share their knowledge and interests as well as their concerns and experiences. Not only do these papers provide state-of-the-art information on cancer, they are also an opportunity to look at the problem from different points of view.

Volume 2 of Portfolio Management for Financial Advisors is a visionary exploration into the evolving landscape of managing client portfolios in financial planning. Being more than a sequel, this book challenges the financial planning profession to aspire for profound impact. Beyond foundational concepts, the author blends professional experience with academic rigour to provide a unique lens on managing client portfolios. Among other topics, the book delves into practical tools for portfolio risk management, retirement portfolio management, and boldly asserts the profession's potential to address global challenges.

Hardbound. This book presents a synthesis of the current knowledge and questions dealing with patient education.Medical efficiency in the treatment of chronic diseases relies not only on the biomedical dimension but also on other knowledge and skills coming from the fields of education, social sciences and medical psychology. Nine diseases and conditions (arterial hypertension, autonomous dialysis, back pain, bronchial asthma, colostomy, diabetes mellitus, epilepsy, laryngectomy, and Parkinson's Disease) have been selected in this attempt to highlight the common objectives as well as the common difficulties and the specific characteristics of each, into the field of patient education.Various topics have been approached: coping, cost efficiency, computer-assisted instruction programmes, cultural and ethnic differences, educating educators, empowerment, health beliefs, interactive learning, interdisciplinary team, lay associations, locus of control, p

Drug Discovery and Development, Third Edition presents up-to-date scientific information for maximizing the ability of a multidisciplinary research team to discover and bring new drugs to the marketplace. It explores many scientific advances in new drug discovery and development for areas such as screening technologies, biotechnology approaches, and evaluation of efficacy and safety of drug candidates through preclinical testing. This book also greatly expands the focus on the clinical pharmacology, regulatory, and business aspects of bringing new drugs to the market and offers coverage of essential topics for companies involved in drug development. Historical perspectives and predicted trends are also provided. Features: Highlights emerging scientific fields relevant to drug discovery such as the microbiome, nanotechnology, and cancer immunotherapy; and novel research tools such as CRISPR and DNA-encoded libraries Case study detailing the discovery of the anti-cancer drug, lorlatinib Venture capitalist commentary on trends and best practices in drug discovery and development Comprehensive review of regulations and their impact on drug development, highlighting special populations, orphan drugs, and pharmaceutical compounding Multidiscipline functioning of an Academic Research Enterprise, plus a chapter on Ethical Concerns in Research Contributions by 70+ experts from industry and academia specialists who developed and are practitioners of the science and business