What is Current Portfolio Risk?
Within the Investment > Risk > Summary tab of each client plan, RightCapital will calculate and display a risk score for the client's current portfolio. By default, the current portfolio risk score is calculated based on the standard deviation of that client's current allocation (i.e. all non-annuity investments entered into the Profile > Net Worth section). This standard deviation percentage can be found in the Investment > Asset Allocation tab, beneath the total return for the Current Allocation.
In the example below, the client's current allocation has a standard deviation of 14.1%, which translates to a current portfolio risk score of 80:
Risk Score Overview
For more details on RightCapital's 1-100 risk scoring system, click here.
How to Customize Current Portfolio Risk
Advisors have the flexibility to customize which of the client's assets are factored into the risk score calculation. This can be done via the Action Items, as well as by adjusting specific settings. For a walkthrough of making specific adjustments, please click use hyperlinks below:
