Finworx is now Lirio Finance!
You might have heard of Finworx or Finworx360, the persona-based risk assessment solution that put behavioral finance into action. Well, guess what … that’s us! Finworx is now Lirio Finance!
We’ve learned a lot through our experience as Finworx, and in our constant effort to do better and increase the efficiency and value of our offering, we have decided to challenge the status quo and adopt a new name that aligns best with our long-term vision—Lirio Finance.
What’s driving your clients’ behavior?
Know how your clients think.
Truly knowing each and every client is imperative to serving their best interests. So, your organization’s credibility hangs on how well you know your clients’ needs. To truly improve outcomes and consistently deliver value, you must go beyond what your clients say, and strengthen your understanding of how they make decisions—what they actually do.
High-Level Assessment of Risk Tolerance
The Behavioral Risk Survey was created based on industry best practices and psychometric principles. Our survey questions were carefully designed to reduce the effect of framing on the investor’s responses, ensure one “wrong” answer does not skew an investor’s results, adjust questions dynamically based on prior responses, and determine the investor’s willingness to take risk with as much accuracy as possible. It uses the client’s answers to previous questions to select the best next question, adapting in real-time to most accurately determine the following details for each of your contacts:
Willingness to Take Risk
Examining their loss tolerance (What would they do if their investments lost money over a specific period?) and reactions to volatility (How would they proceed with certain hypothetical and historical portfolios with varying levels of volatility?).
Attitudes Toward Investment
Includes self-assessment (Which investment scenarios or descriptions most closely describe them?) and looks at how they view tradeoff (Which is more important to them—avoiding loss or earning high returns?), as well as leverage (Is their attitude toward leverage consistent with their risk tolerance?).
Propensities Toward Biases
Behavioral economics outlines two types of biases, emotional and cognitive. Emotional biases come from “impulse” or “intuition,” while cognitive biases come from errors in calculation or faulty reasoning. Identifying specific behavioral biases to expect for each client (e.g. loss aversion, confirmation, status quo, etc.) helps you navigate client relationships more smoothly, explain concepts more clearly, and anticipate certain outcomes. Investor biases can also inform which portfolios or investment opportunities you present to specific clients.
Reach out to learn more.
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