RiXtrema and FinaMetrica are collaborating to provide an end-to-end risk management solution for advisors.

The portfolio stress-testing expert, RiXtrema, and risk-profiling specialist, FinaMetrica, have teamed up to provide a risk management solution that will integrate client and portfolio risk profiles.

The joint offering will enable financial advisors to modify portfolio exposures and mitigate risk, using FinaMetrica’s psychometric risk tolerance test and portfolio mapping services, and RiXtrema’s stress testing and portfolio applications.

“A strong advisory practice requires three things: a detailed assessment of the investor’s risk tolerance; a thorough understanding of the investor’s goals and financial plans; and a robust estimation of portfolio risk and construction of suitable portfolios,” said RiXtrema's president Daniel Satchkov.

The new product will enable advisors to “scenario-test” clients’ portfolios against events such as the financial crisis, compare the results against risk tolerance scores and financial capacity for loss, and then make corrections as necessary.

The service will be available to existing subscribers to RiXtrema and FinaMetrica.

FinaMetrica is an Australian-based firm with US operations in Atlanta, GA.