n NISM Certifications
X NISM Series X
Medium

How is Risk Profiling used in the financial advisory process?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Conducted only once

  2. B

    Updated only when adding new products

  3. C

    Applied only if client agrees

  4. Recorded and updated regularly

    Correct answer

Why this is the answer

Risk profiling is an ongoing process that must be documented and periodically updated to reflect changes in the client’s financial situation, goals, and market conditions.

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