Financial DNA Provides “All-In-One” Financial Personality Reporting to Include Natural Risk Behavior

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DNA Behavior International, based in Atlanta GA, announced on April 11, 2012 the release of the new condensed Financial DNA Natural Behavior Summary Report which includes a specific new section on “Natural Behavior Investment Portfolio Parameters.” The investment parameters are directly linked to the investor participant’s level of natural behavior risk propensity and risk tolerance. This new summarized reporting makes the Financial DNA reporting far more relevant, quicker and easier for financial advisors and their investor clients to interpret and apply in making key financial and investment decisions.

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Hugh Massie, the President and Founder of DNA Behavior International based in Atlanta GA announces on April 11, 2012 the release of the new condensed Financial DNA Natural Behavior Summary Report which includes a specific new section on “Natural Behavior Investment Portfolio Parameters”. The investment parameters are directly linked to the investor participant’s level of natural behavior risk propensity and risk tolerance which are measured through the Financial DNA Discovery Process.

Massie says, this new summarized reporting makes the Financial DNA reporting far more relevant, quicker and easier for financial advisors and their investor clients to interpret and apply in making key financial and investment decisions.

Over the past 12 years DNA Behavior has become a worldwide leader in providing systems for client centered behavioral discovery. A key area of the DNA Behavior business has been working with leading financial services firms and financial advisors to “know their client” utilizing the independently validated “Financial DNA” assessment methodologies which discover the unique make-up of the client’s unique financial personality.

Massie says that financial advisors have always focused on the risk tolerance of their clients but many have questioned the reliability of the tools available. Further, there is now increasing regulatory pressure around the world to know your client’s risk tolerance and generally who the client is at a more holistic level.

DNA Behavior has always worked from the perspective that a financial advisor should know the complete financial personality of the client and the client should equally know who they are. Risk taking is one of those behaviors. This has been the core belief behind the development of the Financial DNA Discovery Process 12 years ago.

When asked why the Financial DNA Discovery Process is different, Massie makes it clear that it is our capability to objectively discover the natural DNA behavior of the client, or what is called the “hard-wiring”. These are the core repeatable behaviors which are deeply ingrained from early in life. Most other systems only discover the situational behaviors which change with markets, circumstances, experiences and education. They are not reliable predictors of behavior and can lead to flawed decision-making if overly relied upon. Many investors will say they are risk takers when times are good and then suddenly become very conservative when there is a market dip. 2008 is a recent memory of this.

Further, many advisors can have significant blind-spots about who they are and therefore will not have an objectively clear picture of the client. So, the client ends up eating the behavior of the advisor.

The Financial DNA methodology is to discover the natural behavior first when getting to know the client, and Massie recommends the advisor also participates.

What we have learned and validated over the past 12 years is that a person’s natural risk taking behavior can be measured, and is directly relevant to the financial planning process.

Massie reiterates that knowing the natural risk taking behavior is foundational because it is inherently stable over long periods of time and therefore predictable through different market events. The natural behavior will always instinctively reveal itself and take over when a person is under financial and emotional pressure. Therefore, strongly influencing decision-making.

Further, Massie says research shows that understanding a client’s propensity to take risks can be higher or lower than their risk tolerance for living with the consequences of taking those risks. This is very important in understanding the client’s decision-making patterns and communicating with them.

Massie says the DNA Behavior belief has always been that a financial advisor’s role includes serving as the client’s behavioral guide. This means the client must be guided away from making tragic “spur of the moment” decisions when there is any market turbulence. Objectively knowing the client’s natural risk taking behaviors will help advisors build investment portfolios that the client can more likely remain committed to for the long term.

DNA Behavior makes the clear point that its Financial DNA reports do not only include insights on risk taking behaviors but provide an “all-in-one” reporting on all dimensions of the clients financial personality as it relates to financial planning in 5 core areas:

1.    Natural behavior strengths, struggles and communication keys for managing decision-making
2.    Quality Life Behavioral Attitudes for goal setting
3.    Financial Planning Insights for building the financial plan
4.    Natural Behavior Investment Portfolio Parameters based on risk propensity and risk tolerance
5.    Advisor-Client Matching for relationship building

Massie says that when clients see that you are taking the extra trouble to know who they are and then to provide them with a more customized service experience trust goes up dramatically. Further, the financial planning process will be more robust from a compliance perspective, and will provide significant productivity improvement for the advisor as they will know what the client wants from the start and can navigate them through market shifts and life transitions.

For more information, please visit http://www.financialdna.com.

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Hugh Massie
Financial DNA Resources
(770) 274-0311
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