Riskalyze was primarily based on the premise that an investor’s risk tolerance may very well be quantified proper right into a single amount, which is then used to create a portfolio that matches this tolerance. It was primarily based by Aaron Klein, Michael McDaniel and Matt Pistone, who shared a typical imaginative and prescient regarding the making use of of risk analysis. Headquartered in Auburn, California, it gained popularity with advisors who’ve found the one amount system and easy and environment friendly approach to market merchandise and craft shopper profiles. have thus far struggled to quantify risk as a method to market companies or merchandise.

(For further, see: Riskalyze Will get $20M Funding to Improve Advisor Tech.)

How Riskalyze Works

The service that it provides permits advisors to ask their purchasers an inventory of questions related to financial risk after which assigns a amount based on these options. Patented Risk Amount experience harnesses a computational platform that obtained the Nobel Prize for Economics in 2002. Advisors can use the numbers generated by this program to craft portfolios that embrace exactly the right amount of risk. They are going to moreover use it to level out purchasers that they is perhaps taking further risk of their current portfolios than they discover.

Riskalyze offers a risk questionnaire. As quickly because it’s submitted, the advisor will enter their shopper’s funding choices immediately into this technique. Advisors uncover this technique exceptionally useful when compiling sophisticated information, as a single amount is simpler to advertise than theoretical risk profiling. It’s due to this that the company found notable success inside the funding advisor space.

Riskalyze markets its merchandise to Registered Funding Advisors (RIAs), neutral broker-dealers, hybrid advisors, RIA networks, plan and account custodians, clearing firms and asset managers along with native banks. The company’s merchandise helped advisors to assemble higher than $2 billion in portfolios in 2012. There are presently no explicit plans at this stage to begin promoting merchandise exterior the U.S., or ship the private agency public. (For further, be taught Managing Shopper Risk: A Check out Riskalyze.)

On the market Devices

The company moreover offers an computerized investing program known as AutoPilot, which may be utilized to deal with every retail and retirement accounts and plans. Completely different merchandise embrace Compliance Cloud, a whole compliance program that mechanically screens an advisor’s information of enterprise and sends an alert every time a regulation has been breached. This module permits advisors to look by way of their information of enterprise and shortly uncover mismatched targets and over-concentrated positions and totally different potential factors sooner than they alter into points. It would in all probability moreover help advisors to automate their workflow and intelligently prioritize their accounts in step with diverse requirements.

Together with quantifying risk proper right into a single amount, the Riskalyze program moreover permits advisors to hold out stress assessments on a portfolio using quite a lot of conditions, equal to a market crash or leap in charges of curiosity.The stress testing software program permits purchasers to see the place they’re weak of their portfolios and the way in which they’re going to mitigate these risks. This method’s portfolio mapping module presents advisors a method to enterprise with 95% accuracy whether or not or not a given shopper’s portfolio will receive the returns that the consumer wishes. These distinctive devices launched vital funding curiosity into the company from exterior sources, which portions steadily rising from their launch to their most recent funding spherical in late 2016. (For further, see: Riskalyze Will get $20M Funding to Improve Advisor Tech.)

MoneyGuidePro Integration

In November of 2016, PIEtech launched that it is integrating its MoneyGuidePro financial planning software program program with Riskalyze. The blending permits clients of each program to launch one system from the alternative. “By coupling the Riskalyze near-term time horizon risk profiling devices with MoneyGuidePro’s holistic long-term risk profiling technique, advisors will possible be greater able to think about a client’s current risk publicity and true risk functionality,” Kevin Knull, president of PIEtech, talked about in a press launch. (For further, see: How Experience Is Altering Financial Advice.)