Quant-created SmartRisk with risk assessment and portfolio analytics that are simple for clients to understand - but are far from simplistic
Omaha, NE, October 11, 2017 (Newswire.com) - Advisors seeking to provide their clients with a comprehensive view of their retirement have access now to three robust, web-based planning tools to evaluate portfolio risk, Social Security timing and tax strategy. Today, Covisum, LLC announced the rollout of SmartRiskTM, an advanced risk management platform for financial services professionals that was acquired by Covisum in early 2017. It is one of the most robust analytics platforms available in the industry. SmartRisk joins Covisum’s existing set of tools: Social Security Timing® and Tax ClarityTM.
Developed by a team of quantitative technology professionals led by Ron Piccinini, PhD, SmartRisk software allows advisors to analyze portfolio risk, review positions and make easy recommendations and comparison with model portfolios. Dr. Piccinini, who is now director of product development for Covisum, brings extensive experience in building world-class risk systems, supporting tens of billions of dollars in assets to Covisum. Prior to joining the Covisum team, Dr. Piccinini co-founded PrairieSmarts, a software business for professional risk managers at sophisticated financial institutions. Dr. Piccinini wrote his dissertation on what are now known as “Black Swan Events,” and how classic risk models underestimate true risk. He is an expert on quantitative risk modeling, heavy-tailed distributions and risk management, and is passionate about helping advisors and their clients avoid the classic pitfalls that can destroy retirements.
“Much like Social Security and tax, investment risk is an essential part of the discussion as people are saving for and preparing to retire,” said Joe Elsasser, CFP®, president of Covisum. “SmartRisk takes into account what an advisor needs to communicate; it reveals the real risks that the client is taking in their portfolio, in simple terms the client can understand.”
Much like Social Security and tax, investment risk is an essential part of the discussion as people are saving for and preparing to retire. SmartRisk takes into account what an advisor needs to communicate; it reveals the real risks that the client is taking in their portfolio, in simple terms the client can understand.
FACILITATING BETTER CONVERSATIONS WITH CLIENTS
Advisors can now efficiently link a client’s risk tolerance to portfolio risk, and establish proper downside expectations to avoid potential behavioral mistakes that can sink a portfolio when markets fluctuate. With SmartRisk, advisors can import a client’s current portfolio holdings either from spreadsheets, or from other industry leading CRM systems. Once client information is generated, advisors can develop multiple model portfolios for each client to demonstrate a wide-variety of risk estimation.
“Clients don’t always react well to negative news – behavior plays a huge role in estimating risk. In 2008 and 2009 it became obvious that the way we have been evaluating risk is not sufficient,” continued Elsasser. “Our goal is to get sophisticated tools into the hands of every advisor before it's too late.”
SmartRisk calculates downside expectation and determine if the risk the client is taking aligned with the risk they have the capacity to take on. The output also provides an “asset interaction” score that defines how diversified the portfolio is – or, in some cases, is not. Advisors can also provide examples of how a client’s portfolio would have performed had they held from the peak of the markets prior to the 2008-2009. Each report is customized for the client as an individual and as a household, and includes the advisory firm’s branding and disclosures.
Advisors or enterprises interested in a demonstration of SmartRisk, Social Security Timing or Tax Clarity, can email firstname.lastname@example.org.
Covisum provides financial advisors with software, training and support to deliver retirement income plans that improve the lives of clients by facilitating better retirement decisions. As the name represents — “co” means joint or shared, and “visum” means vision — Covisum helps advisors and their clients create a shared vision of the future. For more information, visit www.covisum.com.
Jessica Taylor Shores