Managers using the Investment Adviser module can customize the risk profiling with two key functionalities:
1. Customizing the risk profile questionnaire
This allows managers to include questions of their choice in the risk profiling section and map the responses to risk profile categories (Low/Medium/High) for their users during the subscription flow.
It’s important to note that the current set of risk profiling questions have been drafted based on a comprehensive understanding of the specific guidelines issued by SEBI. Please refer to clause 16 of the SEBI IA regulations here.
2. Allowing subscriptions only when user risk profile matches with smallcase
This allows managers to ensure that only users whose risk profiles match with the volatility of the smallcase are able to subscribe to the smallcase. In case there is a mismatch in the user’s risk profile and the volatility of the smallcase, the user wouldn’t be able to move forward in the subscription journey. They would see the following screen:
It's important to note that enabling this feature will block new subscriptions if the user's risk profile doesn’t match with the volatility of the smallcase, while renewals can continue as usual. To enable this feature please drop an email to publisher.help@smallcase.com .
Customize Risk Profiling Questions
Managers need to provide us with two CSV files that include the information as specified in the provided sample sheet.
Risk Profiling Questions
Managers need to update the customized risk profiling questions, including the available options that users can select. The following needs to be kept in mind while preparing this section:
- A maximum of 7 questions can be added to the risk profiling section.
- A maximum of 3 options can be added to each question in the risk profiling section.
- The number of characters in any question and each option cannot exceed 90 characters
Riskmap
The manager needs to define risk labels for every possible permutation and combination of answers that a user might choose.
The following needs to be kept in mind while preparing this section:
- If the risk profiling questions have n questions, there will be n columns, one for each question, as shown here.
- The columns will be arranged in ascending order only, as Q1, Q2, Q3, etc
- Risk Profile column will be added afterward that indicates the risk profile for any user who selects the combination of the given options
- All possible options would need to be covered in the Riskmap csv
- Risk Profile can have the values Low/Medium/High only
Submission of Customized Questions
- The email subject line to raise this request should be "Update Risk Profiling Questions | <Brand Name>"
- Mail containing the CSV file that includes the information as specified in the sample sheet needs to be shared with us at publisher.help@smallcase.com
Implementation and Updation
- Upon receipt of the customized questions, our team will proceed to update the Risk Profiling questions from our end
- Once updated, all new subscribers will be directed through the new Risk Profiling questions and the specified logic in the subscription flow as defined by the manager