It's Season 2! In this first episode of the season, host Julie Mochan talks to Jeff Olsen, President of RiskPro® about:
About Jeff Olsen, President, RiskPro: With over a quarter century of experience in the financial services industry, Jeff has broad, dynamic experience in a variety of roles helping professional advisors deliver best practices solutions to their clients.
One of the original founders of RiskPro, Jeff, and his business partner Nick Scalzo, were driven by the real-world experiences of clients who struggled to align their perception of investment risk with the traditional definitions used by our industry. Realizing that the system was flawed, they developed RiskPro using a mathematically superior protocol and algorithm to analyze asset volatility and translate that into language that clients could understand and advisors could use to manage expectations.
About RiskPro: RiskPro® is a revolutionary technology platform that provides risk profiling, portfolio construction, and automated account surveillance. Serving as the World’s First Virtual Portfolio Strategist, RiskPro evaluates and communicates risk for investors, advisors, and home offices, utilizing a common language that is simple to understand. RiskPro was developed by ProTools, LLC., a RegTech innovator headquartered in Newport Beach, CA.
To learn more about how RiskPro enables financial institutions to achieve Perpetual Suitability, visit them at www.riskproadvisor.com Follow RiskPro on LinkedIn
Reach out to Solutions@RiskProAdvisor.com to find out how we can easily help you mitigate liability for your firm while keeping advisors and compliance teams happy and healthy!
Important Disclosures: This recording has been prepared and made available by RiskPro® to be used for information purposes only. RiskPro® is an investment risk profiling and portfolio construction software as a service platform developed by ProTools, LLC (“ProTools”). The information contained herein, including any expressions of opinion, has been obtained from or is based on sources believed to be reliable but its accuracy or completeness is not guaranteed and is subject to change without notice. Any expressions of opinions reflect the views of the speakers and are not necessarily those of ProTools or its affiliates. ProTools does not provide investment, tax or legal advice. Investors should consult their financial, tax or legal professionals before investing. Any third parties mentioned in the podcast have no affiliation with The Pacific Financial Group, Inc. or ProTools, LLC.
Podcast Music By: Araelia Lopatic
The Translator Season II
Episode 1: Guest Jeff Olsen
Did RiskPro’s Math Pass the Test?
August 25, 2022
NOTE: Transcript from artificial intelligence (accuracy may be affected).
[00:00:00] Julie Mochan: Hello everyone. And welcome back to season two episode 1 of The Translator, brought to you by RiskPro where wealth tech and reg tech converge. Today we have, the most special guest ever. Jeff Olson, president of RiskPro who did the original. Episode one of season one with me and we thought it was time to, um, get him back in the hot seat and ask him some questions because there's been many updates.
[00:00:27] And obviously I think like two years have passed possibly I've had long seat. RiskPro has a long season anyway for the podcast. So, um, right off the bat. Hey there, Jeff, how are you?
[00:00:40] Jeff Olsen: I'm doing great. How are you?
[00:00:43] Julie Mochan: I'm great. Thank you. what I'd like to be able to do is just quickly get out to all of our listeners.
[00:00:50] Um, number one, anyone who doesn't know what RiskPro does, why did you create it? Right. And what does it do quickly? And then, Follow that up with, uh, how does it help the end investor? And then let's go into some new things that we just, talked about, figured out with, uh, because of the volatility that we're experiencing.
[00:01:10] So if you could just let everybody know a refresher of why you created RiskPro with her co-founders and, uh, what it does.
[00:01:20] Jeff Olsen: Absolutely. Julie. So, I started in the securities industry back in 1993, and for my entire career, I had been concerned that we weren't really conveying risk in a way that people understand.
[00:01:35] And if you say your risk profile is balanced, that's ambiguous. And if I ask 10 people what it means, they probably have 10 different answers and that's a problem. And then when you go period, through periods of volatility, like we're in today, people don't typically know what to expect, which makes them feel very uncomfortable.
[00:01:53] Oftentimes, they end up selling out of the market and we want to avoid that, but we also want 'em to know what happens during more normal periods and help 'em have realistic expectations across the board. And so, you know, back in 2014, um, it was kind of like a Reese's peanut butter cup where we had. Nick Scalzo as an advisor who was struggling managing client expectations.
[00:02:18] And we had, uh, our chief investment officer who had created this algorithm that helped everybody understand risk better. And when we saw this, it really is intended to just translate risk across the board to everybody. So it's crystal clear and it's simple. What is the estimated. Maximum gain or loss, we would expect over a 12 month period of time with a 98% confidence level.
[00:02:46] because if an investor is able to understand that, , that's powerful.
[00:02:51] And it gives 'em a feeling of control because they can determine how much risk that they want to take in a way that they totally understand. And it gives 'em confidence. So when you go through a period like we're in today, as long as you're within those guardrails, which is the real key. Right. But as long as you're within that range, where the investor.
[00:03:11] Own what we call personal risk budget. It helps the investor feel like they can stay the course. And, uh, you know, it's all about outcomes and helping investors achieve their goals, but also helping advisors and investors communicate better and just improving the overall experience. So that that's really why we created it.
[00:03:30] Julie Mochan: I think, um, I think everybody realizes setting expectations is so important after we've gone through this pandemic thing where no one knew what to expect. Like every day you just, there was so much fear because no one knew what to expect. We didn't know what this virus was. Right. We didn't know how it was gonna affect the economy or the markets. And I think that maybe, um, helped people understand how important it is to set expectations.
[00:04:00] In any business, right? Or, a government for whomever your client is or whomever, you know, your, your customer is. And, anyone whose expectations are off, there's gonna be problems. Um, tell us about, yeah. What Julie,
[00:04:16] Jeff Olsen: I think you just, what you just said is really important because you look at the pandemic.
[00:04:22] We've never experienced in our lifetimes. Anything like this, the world was literally shutting down and throughout history. We've had all these different events that seem like they're very different than anything we've ever lived through. And in this case, you know, in, uh, 2020, we saw markets decline about 30% in a very short period.
[00:04:45] It's hard not to feel uncertain. And it's hard not to feel doubt and start thinking about getting out of your investments. But those investors that got out the market ended up recovering very, very quickly. And what they did is they realized. Their losses and they missed out on the upside in many cases.
[00:05:04] And that's the kind of thing we wanna avoid. We don't know what history is gonna or what the future is gonna throw at us, but we know that we can estimate how much risk we have and the extreme market events and how that would impact a portfolio. And if we can do that and help people better know what to expect, that's where we talk about confidence leading to the ability to stay the course.
[00:05:26] Julie Mochan: I always get a family member calling me in, in the middle of like something crazy saying, Hey, what should I do with my 401k or something? Like, I don't know how you're invested. Number one, you could be all in cash for all I know, but
[00:05:39] Jeff Olsen: no, that's exactly right.
[00:05:42] What should I do? What you need to do is you need to have a trusted advisor that helps you determine what your goals are and helps make sure that you have the right investments and helps you feel confident and stay in the course. And that's, that's who we wanna work with those trusted advisors. We want to help, 'em have a revolutionary tool that really allows you to understand risk set, realistic expectations.
[00:06:07] And then we need to make sure that we're able to meet those expectations.
[00:06:12] Julie Mochan: Yeah. You want someone to be able to get to their goal. Right. But you don't want them to be uncomfortable or not know what to expect in a time. That is like what we're living through right now, unprecedented. So, um, and, and, and, and you mentioned something that's obviously very important RiskPro is for.
[00:06:35] Enterprises with advisors, um, or registered representatives, um, because of the data feeds that you're able to get, um, who want to monitor portfolios and build portfolios that match a risk tolerance of their, a true risk tolerance of their client. okay. I wanna talk to you about the volatility recently and what you guys found because, um, And because I, I know that, that you sort of based this off of a 2008 market condition, which was really interesting, obviously with.
[00:07:10] Um, you know, the muni bond, insurers and housing market back then, and sort of everything was just crumbling, very similar to, um, instead of the equity market and bond market, uh, being uncorrelated currently, they, they were moving together for a while or at least it seemed like it. So, um, I don't, I, I wouldn't wanna be a bond manager right now.
[00:07:38] but, can you tell me, can you go through, and I know we have some charts and, I'll add these to the back links, so , that someone could check 'em out. Sure. Can you tell us what RiskPro did? Um, from June 30, what of 2021 to up, up until present or, uh, July of 2020. You know, what did it show the users?
[00:08:01] Jeff Olsen: Absolutely. So let me point out a couple things. So you mentioned calendar year, 2008. Okay. That's a year when the S and P is down about 37%. And on top of that fixed income, Especially high yield mortgage backed securities are down significantly and become correlated with equities. And that was one of the scariest times I've ever lived through.
[00:08:24] For sure. Uh, we wanted to make sure that we could create an algorithm that's intended to protect against that kind of calendar year environment or the S and P was down about 37%. And it's not necessarily. Let's protect against 2008 it's it's, let's protect against an event that is of that magnitude, where the S and P is down that much and fixed income is down that much.
[00:08:48] And we also wanna make sure that we don't just set estimates of risk and look at it a year later or three years later and base it all on long term data. We wanna make sure that we're looking at changes in risk of individual securities on an ongoing basis. I don't wanna get long-winded about this. I'm not gonna go into the actual, uh, math and algorithm right now, but what I'll say is we wanna make sure we put ourselves to the test constantly because we need to make sure that the algorithm is providing realistic, accurate estimates of the max drawdown that we expect.
[00:09:29] And so we start by looking. Like you just said, go back a year because RiskPro is designed to estimate the estimated maximum gainer loss over a 12 month period of time. And so we wanna see, let's start with the benchmarks, like the S and P 500 or EFFA or, um, the emerging markets index. When we look at those benchmarks and we look at the estimated tolerance, meaning the max gain or loss we'd expect over 12 months.
[00:09:57] The equity markets performed right in line with what we would expect and are well below the estimated max, uh, loss during that period. So it's exactly what we expected in, in equities on the fixed income side. That's where we saw a very significant magnitude event, meaning it's not necessarily as a percentage gain or loss greater than the equity markets, but the magnitude.
[00:10:25] Of the loss that we've seen in fixed income is very significant. It's actually, you know, we see this 40 year, um, bear mark, I'm sorry. 40 year run. Yeah. Market in bonds suddenly end. And the magnitude has been so extreme. That's where we would see going back to our original estimates of risk tolerance back in.
[00:10:48] June 30th, 20, 21 versus a year later. That's where we saw fixed. Exceed the estimated max, uh, downside. And it took that kind of an extreme event to exceed, which is actually what RiskPro is intended to expect as well. So we're not trying to protect against the historic downturn in bond markets that we've seen.
[00:11:11] We're trying to help you understand what's gonna happen 98% of the time, but I'll also share with you, it it's critical that you don't. Estimated risk and not continue to reevaluate it. So along this period of time, where you look at our estimates for risk on the equity side, and you start at, uh, June 30th, 2021, and you continue to look month by month on the equity side, the estimated risk stays approximately the same changing, very little.
[00:11:45] On the fixed income side. What you see is that the estimated risk starts bumping up. And the reason for that is RiskPro is designed to not set and forget your risk measurements, but to do on an ongoing basis and evaluation of the volatility and markets to allow advisors and home office compliance, to have visibility when risk changes.
[00:12:10] All the way down to the individual security level, as well as at the overall portfolio level. And when that happens and you start seeing risk, jump up, you start identifying portfolios that now have more risk than you expected. And. You may decide that you want to take action over that period of time. You may decide that, um, the client is comfortable with the risk and they want to continue to maintain this higher level of risk.
[00:12:34] But knowing that that's taking place receiving alerts, having visibility, and that's again at the portfolio level, but the ability to drill down to the individual security, that's extremely important. So you constantly understand and are able to evaluate risk and know when it's changing.
[00:12:51] Julie Mochan: again, I'm gonna have these charts in the back links, but I want everybody, when you look at the charts to understand, that two, that the, two benchmarks that sort of broke through what, uh, the estimates were for the max draw down, not by much, but they broke through it. And then that RiskPro kept updating those max draw downs and upside. But that, that I think, um, Again, setting your client's expectations.
[00:13:18] Number one, if they're thinking that a 60, 40 portfolio is, well, that's a thing of the past . I mean, you know, if you have two markets, that at one point were non-correlated and are, are moving together now, it just, you know, it doesn't make sense, right? It it, a 60, 40, uh, split is. Is just not gonna do it anymore.
[00:13:43] but having said that the fact that RiskPro kept picking up on, on new information when it came to the volatility of the bond markets, um, was really, uh, it was like a wow moment. Wow. Hey Julie, no one else is
[00:14:00] Jeff Olsen: doing this. Yeah, no one else is doing this. and translating it into the terms that we do. So everybody knows what's happening.
[00:14:09] And I'll also mention, you know, we talked about the equity markets being within, well, within range, I'm talking about benchmarks, but we also pick up the increase in volatility in individual securities. So like you look at Tesla, it doesn't have to be down. Volatility. I mean, if you have a security that's gone up significantly, you now also see that increased risk and a security that goes up significantly also could go down significantly.
[00:14:36] So we're providing the visibility, regardless of what security is being used. We're providing the visibility all the way down to the individual security level. So you can see this portfolio is. Let's say higher risk than I, I originally, um, had planned and I can see this is the security that's contributing the risk, and I can see how much risk it is contributing to the overall portfolio.
[00:14:59] So it gives me the ability to communicate with clients. It gives me the ability to know when risk changes and it gives me the ability to make changes in my portfolios. Should I decide to.
[00:15:10] Julie Mochan: I, um, I love it because I, and I, and I mentioned this in the first season that I ran a portfolio one time that had like a lot of blue chip stocks and just, just like, you know, boring stuff.
[00:15:23] And it had Nordstrom in there. Right. And I, um, was like blown away. That that was the biggest, uh, portion of the portfolio. It, it contributed the most risk to the entire portfolio and it was just crazy. And today, and I took a screenshot of this because I looked at it today. There's a thing on CNBC. I had CBC on my computer.
[00:15:49] And, and across the, like at the top, in this red headline, it said breaking news, Nordstrom shares drop as retailer cuts full year forecast sites, inventory Glu . And I was just like, there were all these variables, obviously that can, , Uh, add to why something is volatile, but RiskPro gives an advisor and a firm, the ability to have a special sort of secret, you know, thoughts in the mix also to, to measure and project ahead of time with, you know, Julie,
[00:16:24] Jeff Olsen: it does.
[00:16:25] You're exactly right. And it's not to say that there's not sophisticated metrics out there that are being used to assess risk. The challenge is that they're usually behind the scenes, financial advisors often don't know exactly what that means and clients certainly don't. And so what we wanted to do is not just look at risk on an ongoing basis and being able to identify when risk is changing.
[00:16:50] But we also wanted to make sure that it's translated into terms. Everybody understands because that's the real key, you know, how does an advisor communicate risk to a client? How does an advisor identify when there's additional risk in a portfolio? How does a compliance officer at an enterprise have a conversation with an advisor and help them see what is contributing additional risk to a portfolio, or even know that a portfolio risk has increased beyond, let's say the enterprises, uh, estimated maximum limits.
[00:17:20] We need to be able to communicate in a way that everybody understands. And that's the most important thing that RiskPro really does.
[00:17:26] Julie Mochan: let's talk before we wrap up here, Jeff, about, um, integrations and, uh, I want someone, you know, if someone from an enterprise is listening, I want them to understand, Hey, this sounds great.
[00:17:39] Now what like, are we integrated? Uh, blah, blah, blah. So if, yeah, if you could just give us the quick and dirty on that, that'd be great. Yeah,
[00:17:47] Jeff Olsen: let me give you a couple integration points that are important to us, and, and there are more, but let me start with, you know, we have actually created a very deep integration within the Investnet workflows where not only do you have your entire business at the enterprise level. Within RiskPro to view and have your risk rules set very similar to Investnet, but you also have this established, so every advisor can log into RiskPro and they can see their entire book.
[00:18:17] And they can see if there are accounts that are outside of the appropriate risk levels, but they also then can start talking to their clients about risk and RiskPro speak. They can go through RiskPro profiling, they can create proposals. And when you create a proposal, It could be a new proposal. It could be a goal or strategy modification proposal.
[00:18:35] It sinks directly into the in Investnet workflow where you complete the proposal and have the ability to. Set up the account. we understand those workflows really well. So the same thing applies with building a model. You can build a model in RiskPro, including a U a and sync it directly into Investnet.
[00:18:53] We can include the enterprise's entire product shelf. There are a lot of things we can do, but that integration is a very deep integration. However, We also through our sister firm, the Pacific financial group have a great relationship with Orion technology. Where we can do many of the same things.
[00:19:13] And in fact, Julie, before we wrap up, I want to share that with Orion specifically, and the fact that the pursuit financial. Operates their platform using Orion, but is also our sister firm and an enterprise client allowed us to not just look at benchmark risk. We were actually able to look at 105 portfolios that.
[00:19:39] The Pacific financial group, or I'm gonna use the acronym. TPFG either manages or outside strategists like American funds, fidelity, JP Morgan, PECO firms, like that are providing allocations for across their platform solutions. So we look at 105 different model portfolios, and we start by what was the estimated risk?
[00:20:02] In, uh, June 30th, 2021, versus the actual performance that, uh, was experienced in those portfolios through the, uh, June 30th of, of 2022. So through that 12 month period of 105 portfolios, 15 breached, uh, Or surpassed the estimated risk level, all of which were conservative exactly what we would've expected.
[00:20:27] Bonds. Yeah. It's, it's the fixed income side of things that had such an extreme downturn. Exactly. But the average was about three and a half percent beyond the expected, uh, risk level, going back to a projection that was made a year earlier and yeah, that's
[00:20:45] Julie Mochan: not. Too shabby
[00:20:47] Jeff Olsen: no. And so it, it's not too shabby.
[00:20:50] I mean, we're very happy with those results, but keep in mind, we also were able to pick up increases in risk in the bond market throughout that period and provide TPFG and all advisors using, uh, their platforms, visibility of that. And in the real world, you have a hundred, five model portfolios. At an enterprise level, the Pacific financial group sets risk rules and monitors those risk rules.
[00:21:18] And instead of just saying you're balanced, it says, let, we're gonna use the conservative example. The estimated minimum risk, if you're conservative would be no risk. And the estimated max risk that they've set as an enterprise is 12% of those hundred and five model portfolios. Three exceeded the risk rules set by the enterprise , by the average of about 30 basis points. So, all right. Yeah. That is exactly what. TPF G was looking for and expected, and it's exactly what we're able to deliver. And those are the kind of results that, uh, I think can instill a lot of confidence in enterprises, financial advisors, and ultimately the end investor, which is our goal is to help improve outcomes.
[00:22:07] And that are overall experience first and foremost, and we're doing. So
[00:22:12] Julie Mochan: here's what I heard. If you, if I'm an enterprise, meaning, you know, broker, dealer RIA, and I want to utilize RiskPro I can set my own risk parameters for what I feel. A breach would be over, you know, layered on top of RiskPro or, or you customize it for the firm.
[00:22:39] Jeff Olsen: We customize it for the firm. And so let's go back to Investnet for our example. Yeah. With Investnet most enterprises have already set risk rules. What we do is we go in with RiskPro and replicate their risk rules as closely as. So, um, oftentimes they'll have risk rules, like the one up one down rule, meaning you can invest in the client's risk profile, one profile above or one profile below.
[00:23:09] So the problem is even though there's sophisticated methodology in the background, assessing risk. What does that really mean? RiskPro translates that into the max gain or loss based on those risk rules. And so now all of a sudden we've translated risk into terms they understand, but it's consistent with the investment risk rules.
[00:23:31] So it's not changing their world in any way. The one thing that is different. Is that we are gonna pick up when there is changes in risk of individual securities and overall portfolios. And that's where you may see a difference between our RiskPro estimates of risk versus Investnet or anybody else, because we're using different methodology.
[00:23:52] And as we've talked about that methodology that we're using allows you to see one risk is changing quickly, and that's exactly what it's intended to do. And
[00:24:01] Julie Mochan: then that alerts. The advisor back office, and you can decide as a firm or an advisor, what to do from there. Right. Like reach out to this client and talk to them or whatever the situation.
[00:24:14] All right. Um, yeah, be, and let me just, let me just say something that one up, one down thing you just said. If I'm, if I'm an advisor using a regular form risk tolerance form, that's, you know, that goes from aggressive to conservative, a moderate. Moderate aggressive and a moderate conservative are three entirely different things.
[00:24:40] And they mean three entirely different things to everyone. that's absolutely right. So one of one down really does it, like it's not granular enough to be, you know, what you said RiskPro does is, Hey, how much can you make or lose in any 12 month given period,
[00:24:59] Jeff Olsen: right. With a 98% confidence level that you'll stay within those per.
[00:25:03] And keep in mind, we're talking about a short period of time. 12 months is a very short period. It's impossible to predict exactly what return you'll see. And that's why, you know, we know the longer you invest higher probability that you end up having positive returns, but in the short term, if we can help people know what to expect on the extremes, as well as in more normalized type markets.
[00:25:24] It gives 'em that sense of confidence and that's how they end up getting the long term returns that they see mm-hmm to reach their financial goals. So, you know, it's really critical to be able to provide that visibility. And if I'm an advisor, The huge benefit to me is that I'm now able to set these expectations with clients in a way they understand and communicate in a way they understand which dramatically improves the overall investment experience and likely improves outcomes.
[00:25:52] If I'm an enterprise, I've set these rules up and I know that they're broad and I know they're ambiguous. Quite frankly, when you go through a period like we're in right now that presents significant liability to an enterprise, because you could have a balanced portfolio from one advisor that has significantly more risk than a balanced portfolio managed by another advisor.
[00:26:15] Sure. This is a huge risk that we have in our industry. RiskPro can help manage that risk. And again, you know, most importantly, what we want to do is we want to improve the investor experience and have a positive impact on people's lives. And, uh, that's what we're here for.
[00:26:34] Julie Mochan: Hey, um, the next, , thank you, Jeff. Olson president of RiskPro. , it's, it's, uh, been, been a pleasure.
[00:26:42] I want to just, , give a shout out to your whole team. They're incredible. Um, they've been working their rear ends off for a long time to make all of this happen and, um, You know, none of us are any, anything with, without whom we have behind the scenes. Right?
[00:27:02] Jeff Olsen: No question about that. And we have a phenomenal team.
[00:27:06] That really understands the financial services industry really understands the different platforms that are available and all the intricacies that make an integration really challenging. And that has brought us so much further ahead. We're we're not a firm that's led by technologists, but we've added great technologists to the firm that are able to really make all of the things and the vision that we have of what RiskPro can do, uh, bring 'em to fruit.
[00:27:36] We love
[00:27:37] Julie Mochan: data geeks um, and then I also wanted say that, um, my next episode coming out, so it'd be, uh, season two, episode two is featuring mark SF Mahaney, uh, who just came out with a book called nothing but net he's the longest running tech analyst on wall street. And so, you know, we just, we just talked about how you can have, you know, all the fundamentals.
[00:28:05] Technicals of, uh, an individual stock. You can have all of that information and still there's blood on the streets. but that, but to have RiskPro on top of it is, um, wow. It's it's, uh, you know, be able to measure that volatility forward looking 12 months, 98% accuracy. It's silly not to do it. Wouldn't you agree?
[00:28:34] Jeff Olsen: I would say that, um, it it's something that every enterprise should be using without a doubt. And. I, I I mean, really this is a system that can provide massive value across the board and improve the overall communication across an entire organization.
[00:28:53] So, yeah, I I'm, I'm a little biased, but I know that we have something that is really special and we are out to. You know, change the industry and provide this visibility because it helps everybody.
[00:29:05] Julie Mochan: And you take data feeds. I mean, it's not you, you don't mention the resident, but you can take data feeds from.
[00:29:12] Okay. We
[00:29:13] Jeff Olsen: can data feed from yeah. Investment, all board direct investments, Brian. Yeah. We can take all that data and we have it in RiskPro and I guess I should have said this before, but what an enterprise solution really means. Is that we've created a technology that allows us to take not just the account data, but what the risk profile is, who the rep is.
[00:29:36] Is there, are there shared rep IDs? What investments should be available to use everything that the enterprise has established? In their platform that exists today, or one that they want to create, we sync all that up directly with whatever other technologies that they're using. Cause we do not do performance reporting.
[00:29:52] We do not do, uh, trading of portfolios. You know, there's a variety of things that we, we're not trying to compete and, and be able to do. We're doing what we're really, really, really good at, which is. Translating risk, but then we can tie that in and make it very easy for an enterprise to adopt it and make, you know, if I'm an enterprise, I guarantee you one of the big questions is what kind of commitment is this going to require on our part?
[00:30:19] Because we have limited resources. And the commitment on the part of the enterprise is minimal because we have designed the system to be able to take all that data and all the rules and everything else. And then in literally 30 days, we can come back and say, here's what it looks like in RiskPro. Do you see anything that, that doesn't look right?
[00:30:41] And it's really cool because at that point, the enterprise can see their book and they see it through the eyes of RiskPro, but it's all there. And, um, I know that their
[00:30:51] Julie Mochan: entire book of business, the, the entire book of business, you can run it through RiskPro is what you're saying. And then give them back.
[00:30:58] Hey, this all right.
[00:31:01] Jeff Olsen: Yep. Here it is. And then from there it's
[00:31:05] Julie Mochan: really unsee it from there.
[00:31:07] Jeff Olsen: no, you can't unsee it and, and compliance. Always has em in their mind. Hey, I think these advisors are doing a good job. I think these advisors I'm a little concerned about and it gives 'em the visibility to know right away and say, Hey, let's look at these advisors first.
[00:31:22] Or, Hey, I know that this security has been highly volatile. Do we have this? And in the, of our accounts and what's the impact, it really just allows 'em to start looking at their business in a whole new way. That is clear and that's exciting. Um, and Hey, I conclude.
[00:31:38] Julie Mochan: I'm sorry, what was that? Does it pick up on, um, what, what if there are accounts that have a, a large holding of cash?
[00:31:46] Jeff Olsen: So number one, it reflects the. Impact of the cash from a risk standpoint on the investment. So the first thing it's gonna do is tell me, Hey, this investment is, has, you know, ma especially if it's all cash, it has no risk. So I'm, I'm able to see the risk impact. I'm also able to set. Rules so I can understand concentration.
[00:32:12] So I might have a certain amount of cash that's acceptable. Mm-hmm or I might have rules for any security that are acceptable, and I can, I can track that and pick that up as. So like
[00:32:22] Julie Mochan: up to 20 per or two, 3% cash or up to 20% cash. And then it'll start dinging. Hey there's there might be an issue. All right, that's right.
[00:32:32] That's super cool. All right, I'm gonna let you go. We'll have you back, um, before the season is over, because I'm sure you'll have a lot more updates for us,
[00:32:41] Jeff Olsen: we sure will. And I'm excited about, uh, podcast number two for this season. I'll be, uh, definitely listening to that and, uh, appreciate the opportunity to be here.
[00:32:51] Julie Mochan: right. Thanks Jeff. And take care. Thanks Julie.