Managing "macro risk": before you know your client's risk tolerance, you need to know your client.(Investment management)

Research,  January, 2005  by Drucker, David J.

• E-mail
• Print
• Link

Usually, when a financial advisor hears the word "risk," she thinks of uncertainty, whether an investment is going to pay off, how volatile its behavior will be in the market, or the client's ability to tolerate uncertainty and volatility. But how about the bigger risk--the "macro risk," if you will--posed by the client himself?

[ILLUSTRATION OMITTED]

"Macro risk," as we're calling it, is the risk addressed by the USA Patriot Act, otherwise known as the "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept ...

Read the rest of this article with a Free Trial at HighBeam Research.