In financial markets, the ability to take risk while investing indicates risk profile. This is an important variable considered by a financial planner before advancing a product to an investor. Risk profile classifies the individuals in conservative, moderate or aggressive. Wealth management services suppliers use psychometric surveys to estimates the risk profile of a customer. Generally, the individual taking the test is asked to choose that option that best describes his response to the position out of the many options provided. The responses help the financial planners and wealth managers to insight how the person will react in a given situation. That is the basis of the individual's capacity to take risks. The survey minimizes the probability of wealth managers from being biased in the financial-planning process. An individual taking the test should be honest enough to select that option which best explains him.Read more about this aspect at: 

http://articles.economictimes.indiatimes.com/2011-04-21/news/29459327_1_wealth-managers-risk-profile-financial-planner