Investment professionals are responsible to help investors continually determine what level and kind of risk they are willing to take with their investments.

In order to determine a client’s risk appetite, investment professionals often ask a client to complete a risk profile questionnaire. It’s a standard financial planning form and each firm typically develops their own or uses someone else’s. These questionnaires are typically 7 to 10 questions that attempt to measure the investor’s thoughts on the risks in the marketplace and how it might affect them inside their portfolio.