Morningstar launches tool to help frame clients’ risk tolerance

By Staff | July 9, 2021 | Last updated on July 9, 2021
1 min read
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Morningstar Inc. has launched a risk measurement tool, the Morningstar Portfolio Risk Score and Risk Comfort Range.

The tool, which launched July 1, is part of the Morningstar Risk Ecosystem, which aims to help advisors offer in-depth risk tolerance reviews based on personalized psychological analysis, the company said in a release.

The new risk tool measures a client’s risk tolerance and then shows how well the client’s risk expectations match up with the risk profiles of their own portfolio as well as those of potential investments.

“Traditional risk profiling is typically inadequate and does not meet the true needs of investors or advisors serving them. The industry has, for too long, focused on measuring only the risk of investments within a portfolio, resulting in a commoditization of investment advice,” said Jeff Schwantz, head of client advisor experience with Morningstar, in a release. staff


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