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