Reviews the evolution of financial risk tolerance through normative changes introduced by MiFID 1 & MiFID 2 Directives
Provides a comprehensive and updated repository of academic research on risk tolerance determinants
Offers a practitioner’s view of the complexities of real-life financial risk tolerance
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Table of contents (5 chapters)
About this book
This book revolves around the concept of financial risk tolerance and its role in financial markets. Bridging different literatures and reviewing in detail the impact of European regulation on the evolution of risk tolerance assessment, this book discusses the intersection of scholarly research, practitioner experience and current and likely normative developments.
In particular, the book focuses on the evolution of the debate on the suitability questionnaire – a key tool introduced with the Markets in Financial Instruments Directive (MiFID) and further developed with MiFID’s successor - comparing it with empirical evidence on financial risk tolerance determinants, spanning from sociodemographic to behavioral components and life events.
The book also looks at the future evolution of the normative framework post MiFID2 addressing in detail two key trends that are already affecting the way in which risk tolerance is dealt with in European financial markets – sustainable development and fintech and roboadvisory.The book includes an original survey run with financial market experts to assess the perceptions regarding these two trends and includes commentaries by a professional financial advisor on the key topics discussed.
- Financial risk tolerance
- risk profiling
- normative changes
- regulatory requirements
- Financial risk management
- Markets in Financial Instrument Directive
Authors and Affiliations
Department of Management, Ca' Foscari University of Venice, Venice, Italy
Caterina Cruciani, Gloria Gardenal
WieldMore Investment Management, London, UK
About the authors
Caterina Cruciani is an Assistant Professor in Financial Markets and Institutions at the Department of Management, Ca’ Foscari University of Venice, where she also received a PhD in Economics. She is the Operating Director of the Center for Experimental Research in Management and Economics (CERME) and a member of the Risk-Lab at Ca’ Foscari University of Venice.
Gloria Gardenal is Assistant Professor of Corporate Finance and a member of the Risk-Lab and the Center for Experimental Research in Management and Economics (CERME) at Ca’ Foscari University of Venice, where she also received a PhD in Business.
Giuseppe Amitrano is the Founder and CEO of WieldMore Investment Management. After over 25 years of experience as managing director in rates, credits and derivatives in leading financial institutions in Europe, Giuseppe has founded and leads as CEO Wieldmore Investment Management
Book Title: Understanding Financial Risk Tolerance
Book Subtitle: Institutional, Behavioral and Normative Dimensions
Authors: Caterina Cruciani, Gloria Gardenal, Giuseppe Amitrano
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Author(s), under exclusive license to Springer Nature Switzerland AG 2022
Hardcover ISBN: 978-3-031-13130-1Published: 28 September 2022
eBook ISBN: 978-3-031-13131-8Published: 27 September 2022
Edition Number: 1
Number of Pages: XIX, 180
Number of Illustrations: 4 b/w illustrations, 34 illustrations in colour
Topics: Risk Management, Behavioral Finance