Knowledge Base: Frequently Asked Questions About SmartRisk

Q: What does SmartRiskTM do? 

A: SmartRisk uses a heavy-tailed model to provide more precise portfolio risk measurement, because the actual risk of big losses in client portfolios is much greater than the standard deviation calculation would suggest. SmartRisk doesn’t show what we think will happen; it’s what could happen. This more realistic estimate of risk allows advisors to have a conversation with the client in advance of the next downturn, and set reasonable expectations. In addition,


Posted in SmartRisk, portfolio volatility, portfolio risk, Advisor, FAQ

Forbes Finance Council: The Truth About Portfolio Risk Exposure

Posted on June 22, 2018

In a recent article for Forbes, Covisum President, Joe Elsasser, CFP®, addressed common misconceptions surrounding financial risk and the dangers of relying on an outdated financial risk model. 


Posted in Forbes, Joe Elsasser, In The News, portfolio risk

3 questions that make creating a retirement investment strategy easier

Posted on May 21, 2018

Crafting a retirement investment strategy can be a daunting task for many people, even when they have a great financial advisor. The best way to help your clients get started is to remind them to slow down and answer three questions.


Posted in FinancialPlannng, portfolio risk, Industry Advice, Retirement, Risk, Retirement Age Explain Risk To Clients Now

Covisum President Joe Elsasser, CFP® recently contributed an article to, "Explain Risk To Clients Now," discussing how clients often have unrealistic downside expectations and some of the possible investment mistakes that can be made without properly analyzing their portfolio. He answers questions about effectively estimating a client's risk, what clients need to know about risk, how much a portfolio could lose in a particular period, diversification, and historical


Posted in In The News, Joe Elsasser,, Risk Tolerance, Downside Risk, portfolio risk, Risk

Setting proper downside risk expectations during market volatility 

This just in from FinancialPlanning:

The Dow finished the day down by 1,032.95 points, or 4.15% at 23,849.23 — down 2,767 points, or 10.4%. A drop of 10% from its high of 26,616 on Jan. 26 is considered a correction. The S&P 500 tumbled 2.96%, erasing its gains for the year. Ten-year Treasury yields flirted with four-year highs. 

And on Wednesday, Suleman Din wrote an article for FinancialPlanning titled, "Can another digital demand crush be avoided?" Some of the industry's most well-known


Posted in FinancialPlannng, In The News, Joe Elsasser, SmartRisk, portfolio risk, Risk, Market Volatility, Downside Risk

When clients ask: How do I stress-test my portfolio?

To help you talk risk with clients, Ron Piccinini, Ph.D., answers some common client questions here. Ron, Covisum’s director of product development, is an expert on quantitative risk modeling, heavy-tailed distributions and risk management.


Posted in portfolio risk, portfolio volatility, SmartRisk, Ron Piccinini, PhD

Investors Chronicle article features Ron Piccinini, PhD

Investors Chronicle published an article, "Does fortune favour the bold?" by  on July 27, 2017.


Posted in SmartRisk, Downside Risk, Risk, portfolio risk, Investors Chronicle

WATCH: Don't Be Fooled Into Believing a Portfolio is Diversified

SmartRisk was created for one overarching reason: risk software on the market is based on outdated math, and that math dramatically underestimates risk. Advisors should care about explaining risk to clients because helping them avoid the classic pitfalls that can destroy retirements builds a stronger, more trusting relationship. SmartRisk's massive computing power and sophisticated models properly measure portfolio risk. Join Joe Elsasser, CFP®, President of Covisum and see how SmartRisk can


Posted in SmartRisk, Free Trial, Demo, portfolio risk, Risk, Asset interaction, Drawdown analysis, video

SmartRisk Tutorial  

Designed specifically for financial advisors, SmartRisk helps you set proper downside expectations with your clients. Join Marisa for a quick demonstration of the software. Learn more. 


Posted in SmartRisk, portfolio risk, Software Programs, Asset interaction, Drawdown analysis, Risk, video

Portfolio risk: how much value is in the tails?

Investors know that time in the market is their friend. Stay in the market for a long period of time, and good things will happen, even in times of high volatility.


Posted in portfolio risk, Risk, SmartRisk