Questionnaire

Kwanti’s Risk Profiling tool allows advisors to create and assign risk questionnaires for prospects and clients to complete. The Prospect/Client Risk Score is derived from a comprehensive Risk Questionnaire, which assesses both Risk Tolerance and Risk Capacity.

Key Components of the Risk Questionnaire

• Risk Tolerance: Measures a client's comfort level with the volatility (fluctuations) in the value of their investments. It essentially evaluates how much uncertainty a client is willing to endure to achieve their financial goals.
• Risk Capacity: Evaluates a client’s financial ability to absorb losses, considering their long-term financial objectives, time horizon, and immediate financial needs.

Creating a Questionnaire

To create and send a questionnaire to a prospect or client, you first need to create a Client profile in Kwanti (see Creating a Client for details).

Once the Client profile is set up, go to the Risk tab and click New Questionnaire.

• If you are sending the questionnaire to a single person, simply choose the questionnaire template and click Create.

• If you are sending the questionnaire to more than one person in the same client record (for example, a couple), follow the steps in the next section.

Sending to Multiple Recipients in a Household

To send questionnaires to two individuals in the same client record:

1. Click New Questionnaire.

2. Click Set Multiple Recipients.

3. Enter each individual’s first and last name and click Save.

4. Choose the questionnaire template and click Create. A single link is generated for the household.

5. When recipients open the link, they’ll be asked to select their name so their responses are tied to the correct person.

6. After both individuals complete the questionnaire, return to the client’s Risk tab and click Assign Score.

• The default household score is the average of both individual scores.
• Advisors can keep this default or enter their own combined score.

7. Click OK to save the household score.

Use this feature when you need to capture separate risk profiles for each household member while assigning one combined household-level risk score.

Understanding the Risk Score

Upon completion of a questionnaire, the risk score is displayed within the client interface. The questionnaire generates both a Risk Tolerance Score and a Risk Capacity Score. Kwanti uses the lower of these two scores as the client's final Risk Score. The scores are calculated on a scale of 1-100, ensuring consistency regardless of the original scale used during the questionnaire's creation. The highest possible score of 100 represents maximum risk tolerance or capacity, with other scores scaled relative to this maximum.

Using and Customizing Questionnaires'

Kwanti’s platform simplifies the task of assessing a client's willingness and ability to endure market uncertainty by offering multiple questionnaire options:

• Default Questionnaire: Every Kwanti user has access to a 'Default Questionnaire' that is available for immediate use.
• Custom Questionnaires: Custom questionnaires can be added and managed in the Global Settings. To create a Custom Questionnaire:

1. 1. 1. Click Settings
      2. Selects 'Risk Questionnaire' from the left side menu
      3. Under 'Templates' select 'Add'
      4. Enter the Title of your custom questionnaire. 
      5. Add questions and Answers
         • For each question select if it is a tolerance or capacity based question. In addition, users can designate a question as a "Fact Finding" question which will not impact the score of the questionnaire. 
         • For each answer, assign the points (weight) it will receive when selected to calculate the score. Higher values represent greater risk tolerance or capacity, while lower values indicate a more conservative approach. To ensure accuracy, responses that indicate a higher tolerance or capacity for risk should be assigned higher points.
      6. Click Create

Editing Opening and Closing Message on Questionnaires

The opening message is displayed on the first page of the questionnaire, and the closing message appears after the questionnaire is submitted. These fields are universal to any questionnaire, whether it is Kwanti's default or a custom questionnaire created by the advisor. To edit these fields:

1. Click Settings
2. Selects 'Risk Questionnaire' from the left side menu
3. Edit the Opening Message and Closing Message Fields

View Questionnaires

Advisors can view sent questionnaires in two places:

1. Client Risk Profile: Accessible within each client’s profile, this section shows all questionnaires specific to that client and their statuses.
2. Settings > Risk Questionnaire > View Questionnaires: This section displays all questionnaires created by the advisor.

By utilizing these tools, advisors can accurately assess and manage their clients' risk profiles, ensuring that investment strategies align with both their comfort levels and financial capabilities.