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The Psychometrics Centre

Cambridge Judge Business School Executive Education

Studying at Cambridge

 

Dynamic Risk Profiler for Distribution Technologies Ltd.

During late 2005, Distribution Technologies approached us to develop a new instrument to assess individual's attitude to financial risk. The project was led by Dr Almuth McDowall.

The process for developing the instrument was:

  • focus groups with representatives from Department of Trade and Industry (DTI) and the Financial Services Authority (FSA);
  • debate and agreement on the behavioural characteristics of individuals with varying sensitivity towards financial matters;
  • collection of data from 1023 respondents by the leading market research organisation GfK NOP.
  • Analysis of the data
  • Development of profiles classifying individuals within a range from high risk-taking to highly risk-averse.

The tool had three versions of different lengths (5, 18 and 24 questions). This was the UK's first multi-questionnaire risk profiling tool, and was successfully used at Distribution Technologies Ltd to provide sound investment advice to their clients. 

Contact us for more information on our test development activities