PROCESS, SYSTEM AND FINANCIAL ENGINE FOR DETERMINING A LEVEL OF RISK IN THE MARKET, AND FOR ADJUSTING USER’S MARKET EXPOSURE BASED ON THE LEVEL OF RISK

摘要

A process, system and financial engine which determine portfolio’s sensitivity to market risk based on market conditions are described. In particular, with these process, system and financial engine, first data representative of time horizon information and second data representative of risk tolerance information are first received, and guidelines data based on the first and second data are established. Economic and market data underlying the quantitative indicators and factors determining the qualitative indicators are received. Market risk signals based on the indicator(s) is then established. The portfolio’s sensitivity is determined based on the established guidelines data and the market risk signal. Using these process, system and financial engine, it is possible to determine the current market risk level, and then recommend changes to (or adjust) the user’s portfolio market risk sensitivities based on the user’s time horizon (i.e., need to access their assets within a particular time) and the determined market risk level.