Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. It is a consultative process whereby the advisor gleans information about the client's wants and tailors a bespoke strategy utilizing appropriate financial products and services.
A wealth management advisor is a high-level professional who utilizes the spectrum of financial disciplines available, such as financial and investment advice, legal or estate planning, accounting and tax services, and retirement planning, to manage an affluent client's wealth for one set fee.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
- The process should create value for the organization.
- It must take into account human factors, including potential errors.
- It must explicitly address any uncertainty.
- It should be tailored to the project.
- It should be transparent and all-inclusive.
- It should be continuously monitored and improved upon.
Financial risk is a term that can apply to businesses, government entities, the financial market as a whole, and the individual. This risk is the danger or possibility that shareholders, investors, or other financial stakeholders will lose money.
Uncertainty due to changes in market prices.
Uncertainty about whether investors will provide sufficient funds.