“Totum Risk is constantly researching opportunities to reverse engineer the right risk tool for the right environment,” said Larry Shumbres, CEO.
September 10, 2019
Totum Risk (Totum), the only multi-scoring risk tolerance tool that helps advisors understand how much risk their clients can take based on their life situation, is proud to announce our newest enhancement. Risk Trend Score will now be available to individual and enterprise users of Totum Risk on all subscription plans.
Totum’s Risk Trend Score is designed to evaluate portfolio performance over multiple market cycles and periods of volatility. The new feature, automatically visible on the Totum dashboard, gives financial advisors the ability to see and track a portfolio’s risk score daily and compare it to a client’s or household Risk Band—the area between Risk Preference and Risk Capacity.
“Totum Risk is constantly researching opportunities to reverse engineer the right risk tool for the right environment,” said Larry Shumbres, CEO. “We like to audaciously challenge ourselves, and our advisors, to be bold in the ways in which we deliver a modern risk client experience in this era of transformative change.”
Unique to this integration is the use of population analytics, machine learning, and various database engines, which updates a client’s risk capacity number based on a trackable life event.
Risk Score Trend combines in an easy-to-use interactive graph visualization that allows financial advisors to understand their client’s data in real-time. The module combines three trend lines: Risk Capacity, Risk Preference, and Portfolio Risk Score across the x-axis and a vertical y-axis, from 0 to 100 in 25-point increments. Risk Score Trend can be surfaced in its own window.
The new addition of Risk Trend Score has important implications for both financial advisors and their clients.
When a portfolio scores within the Risk Band, risk is appropriately allocated. When a portfolio scores outside of the Risk Band, advisors receive an automatic alert, indicating the need for a potential change in asset allocation, diversification, and realignment of portfolio sector weightings.
About Totum Risk
Totum is the only multi-scoring risk tolerance tool that helps advisors understand how much risk their clients can take based on their life situation. Totum is based in Atlanta, GA and the company was founded in 2015 by FinTech industry veterans including managing partner Mark Cone. With Totum, advisors can easily customize how they engage with their clients and have in-depth discussions about their Risk Preferences, Risk Capacity and Portfolio Risk. For more information on Totum Risk, please visit https://www.totumrisk.com/ and follow us on Twitter, LinkedIn, Facebook, and Instagram.
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Published at Tue, 10 Sep 2019 00:00:00 +0000