Wealth management technology company Advisor Software launched a behavioral finance profiling solution, Behavioral IQ. The new tool helps advisors uncover their clients’ behavioral characteristics that influence their risk and financial decision-making.

Dr. Andrew Rudd, Chairman and CEO of Advisor Software, described current risk assessment tools for wealth management as “broken,” pointing out that their “flawed results” may lead to “disastrous outcomes.” Rudd added, “Behavioral IQ’s measure of deep behavioral factors influencing risk and decision making enables financial advisors to truly understand clients’ personalities and risk tolerance to make smarter, more informed financial decisions.”

The Behavioral IQ assessment takes a Myers-Briggs approach to determine a client’s decision-making process and risk preference. The six modules of risk analysis assess financial decision-making preferences, risk tolerance, financial knowledge, comfort levels in gain and loss scenarios, confidence, and financial loss tolerance. Combined, they produce a multi-dimensional evaluation that offers advisors the information they need to make better-aligned investment selections for their clients.

Advisor Software was recently named to our list of Top Business-to-Business Wealth Players. The company showcased its Wealth Management apps for Salesforce Financial Services Cloud at FinovateSpring 2016. In 2015, Advisor Software presented the suite of more than 100 APIs that comprise its developer solution at FinDEVr. The company was founded in 1995.