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  • © 2022

Understanding Financial Risk Tolerance

Institutional, Behavioral and Normative Dimensions

Palgrave Macmillan
  • 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

Buying options

eBook USD 39.99
Price excludes VAT (USA)
  • ISBN: 978-3-031-13131-8
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book USD 49.99
Price excludes VAT (USA)

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Table of contents (5 chapters)

  1. Front Matter

    Pages i-xix
  2. Financial Risk Tolerance: Where Does It All Start From?

    • Caterina Cruciani, Gloria Gardenal, Giuseppe Amitrano
    Pages 1-38
  3. Risk Tolerance Tools: From Academia to Regulation and Back

    • Caterina Cruciani, Gloria Gardenal, Giuseppe Amitrano
    Pages 39-78
  4. The Digital Challenge: How Are New Technologies Shaping the Financial Industry?

    • Caterina Cruciani, Gloria Gardenal, Giuseppe Amitrano
    Pages 119-151
  5. Challenges and Opportunities for the Future Investor: A Practitioner’s Guide

    • Caterina Cruciani, Gloria Gardenal, Giuseppe Amitrano
    Pages 153-178
  6. Back Matter

    Pages 179-180

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.

Keywords

  • Financial risk tolerance
  • risk profiling
  • normative changes
  • regulatory requirements
  • Financial risk management
  • Markets in Financial Instrument Directive
  • MiFID

Authors and Affiliations

  • Department of Management, Ca' Foscari University of Venice, Venice, Italy

    Caterina Cruciani, Gloria Gardenal

  • WieldMore Investment Management, London, UK

    Giuseppe Amitrano

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

Bibliographic Information

  • Book Title: Understanding Financial Risk Tolerance

  • Book Subtitle: Institutional, Behavioral and Normative Dimensions

  • Authors: Caterina Cruciani, Gloria Gardenal, Giuseppe Amitrano

  • DOI: https://doi.org/10.1007/978-3-031-13131-8

  • 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

Buying options

eBook USD 39.99
Price excludes VAT (USA)
  • ISBN: 978-3-031-13131-8
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book USD 49.99
Price excludes VAT (USA)