It aims to help advisers provide suitable investment planning for their clients by assessing risk accurately.
Risk Explorer combines data from several sources and then ‘visualises’ investment outcome projections, demonstrating the relationship between investment and risk, Synaptic says.
The new tool also supports compliance with the Markets in Financial Instruments Directive (MiFID II) regulations.
Risk Explorer provides probability-based forecasts of investment outcomes that are aimed at supporting clients’ goal-based Financial Planning.
The solution calculates a client’s attitude to risk ranging from ‘cautious’ to ‘adventurous’ and analyses portfolio risk to assess potential investment losses on a case-by-case basis.
Synaptic says financial advisers can also use Risk Explorer to calculate the impact of variables such as financial advice costs and inflation to calculate expected growth values.
Risk Explorer is integrated with Moody’s Analytics Economic Scenario Generator, a financial intelligence and analytics tool which provides a model giving objective measures for investment risk.
Stephen Ferry, managing director of Capita’s Synaptic Software, said: “Risk Explorer was developed by combining our software capability with our digital expertise in the financial services sector. Our intuitive solution will help financial advisers deliver quicker and better services to their customers.”