The ATRQ System is a set of risk profiling questionnaires designed to assess investor attitude to risk.
It is a series of short statements that capture key aspects of the investor’s attitude to risk and provides an attitude to risk score and category that summarises the individual’s attitude to risk.
This provides a structured means of matching an investor to an appropriate investment portfolio in a robo-advice solution or a live dialogue between an adviser and client.
A2Risk’s ATRQ System is designed according to the established principles of psychometrics – the science of measuring individuals’ attitudes. The questions have been designed to be easy to use by a wide range of investors.
The ATRQ System contains clear and straightforward statements to which investors can respond. It avoids questions that the UK population would be potentially be uncomfortable with – complex investment scenarios; calculations or working with mathematical concepts such as percentages; or detailed financial knowledge.
The ATRQ System has a long and successful track record. It was first developed by Dr Alistair Byrne and Professor David Blake in 2006, and the business was transferred into A2Risk in 2013. It is used in a wide range of financial software and fund rating system’s and is the central risk profiling tool in the Barrie & Hibbert system marketed by Moody’s.
Tailored to differing risk profiles
Investor circumstances and risk profile may change as investors move from a period of saving and accumulating assets to drawing down and decumulation. Uniquely among risk profilers, the ATRQ System recognises that decumulation is a different context for investors and requires its own tools. Wealthier investors too, tend to have more tolerance for risk than the average population of UK investors which should be accounted for when risk profiling.