CDD On Demand

The European Union has announced restrictive measures in response to the crisis in Ukraine. Our partner Acuris Risk Intelligence has issued new statements regarding the current sanctions environment against Russia. This statement means that Acuris Risk Intelligence will make every effort to incorporate any changes into the database within 24 hours. Since the link between SCOPE CDD On Demand and Acuris Risk Intelligence is real-time, this means that the results are also visible in the compliance check within 24 hours. Sanction lists list individuals and entities that are subject to financial restrictions to prohibit counterterrorism regimes and money laundering around the world. When doing business, you naturally want to be sure you are building relationships with the right people. Therefore, it is important to properly screen the business partner before entering into a business relationship. With CDD On Demand Solution you can monitor your customers on a daily basis. If during the daily monitoring a possible match is found for one of the persons or companies on the monitoring list, you will receive a notification. If you receive a notification, you can take immediate action. The monitor function on CDD On Demand is valid for one year. As a user, you have the option of extending this automatically.  Together with our partners, we provide an up-to-date software platform that you can rely on.

Unique formula for risk tolerance

What risk is your client willing to take? It can be a difficult task for you and your client to properly assess this, as not all risks are visually understood. By integrating AMCET's EPI engine and FinaMetrica's psychometric risk tolerance test, a unique risk profile is created. 

No more complicated questionnaires with vague concepts

In practice, incorrectly formulated questions and scenario analyzes are often used to determine risk tolerance. These scenario analyzes are difficult to understand, creating the risk that clients will guess answers. A consequence of guessing is that people do not think about what the question actually means regarding financial risk to their assets. This can make the client's risk tolerance appear (much) higher than it is. 

By integration the "EPI Engine" that gives an overview of the development of the capital per stock exchange climate and per investment strategy the (downside) risk is visually presented to the client. At a glance, the client sees what risk he/she can risk with his/her assets.

In addition to the EPI engine, FinaMetrica's psychometric risk tolerance test is also integrated into the software. Based on twelve questions it is determined with which risk the client can live. In other words: which risk is the client willing to take. 

Based on the psychometric risk tolerance test and the Monte Carlos simulations of the EPI engine, the software gives a advice about the most suitable risk profile. The choice of the actual risk profile always remains that of the client in consultation with the asset manager / advisor.

An example of a Monte Carlo Simulation in the SCOPE KYC Cloud Portal

The EPI Engine

The EPI Engine makes the risk capacity and the required risk transparent for the client. 

The EPI engine performs a Monte Carlo simulation where the returns of the investments can be calculated for different stock market scenarios. Clear visualisations show the client whether the capital target can be achieved and what the most positive and negative scenario is per stock market climate. 

The Monte Carlos simulations are created based on parameters entered by the asset manager himself. The EPI engine can calculate "what" the value of a parameter should be in order to achieve an objective with a certain degree of certainty. This makes it possible to answer complex questions from the client, such as the examples next.

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How long and how much should I invest to reach my objectives, if I choose to invest in stead of saving?

How does the feasibility of my objective change if I put €100 every month in an investment account instead of a savings account?

If I opt for offensive investing (with a lot of risk), what will happen to my assets in the worst case scenario? And at best? How does this differ from savings or defensive investing?

How much do I have to put in extra per month to increase the feasibility of my goal to 80%?

The EPI Engine

The EPI Engine makes the risk capacity and the required risk transparent for the client. 

The EPI engine performs a Monte Carlo simulation where the returns of the investments can be calculated for different stock market scenarios. Clear visualisations show the client whether the capital target can be achieved and what the most positive and negative scenario is per stock market climate. 

The Monte Carlos simulations are created based on parameters entered by the asset manager himself. The EPI engine can calculate "what" the value of a parameter should be in order to achieve an objective with a certain degree of certainty. This makes it possible to answer complex questions from the client, such as the examples next.

1.

How long and how much should I invest to reach my objectives, if I choose to invest in stead of saving?

2.

How does the feasibility of my objective change if I put €100 every month in an investment account instead of a savings account?

3.

If I opt for offensive investing (with a lot of risk), what will happen to my assets in the worst case scenario? And at best? How does this differ from savings or defensive investing?

4.

How much do I have to put in extra per month to increase the feasibility of my goal to 80%?

Golden combination

The combination of both objective and subjective risk assessment creates a best practice risk profile. Based on this risk profile you and your client can determine which investment strategy suits your client the most.

Watch our demo video about the risk tolerance questionary

Watch our demo video about the risk tolerance questionary