Ortec Finance has over 35 years of experience in goal-based wealth and financial planning, based upon our proprietary economic scenario generator and advisor tooling. In the planning process, we enable and guide sound investment decisions, specifically in the risk-return trade-off. A key step in the wealth/financial planning process is therefore the risk profiling of clients, especially in view of regulations in place (e.g. AFM/MiFID II, ESMA), in order to capture the willingness & ability of an individual to take on investment risk.

Risk profiling is traditionally done through standard questionnaires, but with changing regulations and evolvement of this field, numerous alternatives have come up (such as biometric techniques). Still, there is little consensus on the appropriate methodology to assess the risk willingness and capability of clients most accurately.

To this end, the aim of this project is to investigate available methods for risk profiling and evaluate these comparatively, ultimately aimed at coming up with a replacement for the standard questionnaire included in our financial planning offering.

Depending on the student the project could go two ways or a combination of both. The project could focus more on the behavioural economic literature regarding inference from questionnaires. This would fit well with a student with an economic background. Alternatively, the project could focus new technologies for risk profiling such as chatbots.

The aim of the project is therefore to:

  • Obtain an overview, from academic literature, on the various methodologies to capture the risk attitude of individuals (for economic decision-making);
  • Critically evaluate and weigh alternatives to rank the most appropriate methodology, based on sound academic reasoning;
  • Formulate this methodology for practical application in the financial planning process;
  • Validation & assessment of this methodology, academically and in practice (with experienced financial planners).

Requirements for this project are:

  • Interest in the application of quantitative methods in finance
  • Affinity with behavioural economics & psychology
  • Solid background in economics and/or computer science (depending on the chosen direction)
  • A critical mind and strong research capabilities

References:

Klement (2015) - Investor risk profiling, an overview

Falk, Becker, Dohmen, Huffman, Sunde (2016) - The preference survey module

What we need from you

To take your application in to account, we would like to receive several documents from you:

  • An up to date CV
  • Your motivation for Ortec Finance and this assignment
  • Information about the requirements in terms of start date, period etc.
  • List of marks

More information or to apply?

For more information regarding this position please contact Anne van der Ven (HR Advisor) at +31 10 700 50 00.

To apply, please use the application button below to send us your cover letter and CV.

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