Goal 3: Mitigating Risk (Financial Advice)
Updated
Risk Score is the Goal Metric of Elevation Goal 3: Safeguarding clients’ best interests, mitigating risk
Calculation of the risk score
Each review is assigned a binary risk score (i.e. the review is either risky, or it isn’t), based on the client’s responses to questions in the review. The score for each review “rolls-up” to provide a score by client, adviser, business segment, firm and industry.
Within a review, responses can either be (a) not indicative of risk (b) medium risk (c) high risk. A review qualifies as risky if it has either 2 or more medium risk responses, or 1 or more high risk responses (or both). The dashboards show the proportion of reviews that don't meet that risk threshold. Responses by risk level are listed below.
We welcome all feedback from advisers and firms on this calculation. We are particularly keen to structure the risk score such that it helps risk & compliance teams, training teams and advisers identify potential issues and prioritise their activities. As such, the risk score calculation may be subject to change.
Risk Levels
