Understanding the risk activity

Your clients will complete a gamified digital experience that quickly and accurately reveals their unique risk preferences, as defined by their Attitude to Risk, Sensitivity to Loss, and Risk Comfort scores. The activity also identifies if the client has low Decision Consistency. This article walks through and explains the stages of the client experience.

Below is first screen the client sees after clicking the link you’ve sent them. The purpose of this screen is to frame the activity. Clients typically spend 5-10 seconds on this screen before clicking on Agree.

Next, the client will input approximately how much wealth they have to invest. If you’ve entered their investment amount for them in the portal, then this page will be pre-populated with that figure. We use this amount to calibrate the activity, so that the gain and loss amounts they see across the six scenarios are meaningful to them.

Next, the client is presented with some brief instructions on the activity they are about to complete. 

Then, the activity begins. The client is presented with a slider, which they will use to decide how much of their investment they are willing to risk losing in return for a potential investment gain.

If the client moves the slider all the way to the right, it means they are willing to risk their total investment amount in return for the highest possible investment gain in this scenario. Alternatively, if the client moves the slider all the way to the left, it means they are not willing to risk any of their money in this scenario. 

Typically, clients will place the slider somewhere in the middle of the continuum.

After completing the first scenario, the client will be shown the following graphic:

This is a call-out to the client that the potential gain – represented by the green triangle – is going to change size across each of the subsequent scenarios. This is done to stress-test how a client makes risk vs. reward decisions when there is more or less investment return on the table.

After this screen, the client will perform the same task with the slider on rounds 2-6 of the activity.

Upon completing the sixth round of the activity, the client’s results are calculated, and the activity concludes. The client is shown a screen with the following text “Thank you for completing the risk activity. Your adviser has received your results and will be in touch.”

You will then receive an email that your client has completed the Risk Activity, and their results can now be viewed. To learn about how to discuss the results with your client, see our article on Presenting the Client's Results from the Risk Activity.

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If not, please feel free to reach out to us at customer-support@capitalpreferences.com