Beyond Transaction Banking Product Risk Classification

Product Risk Classification

Credit Suisse offers comprehensive support for the investment suitability process in private banking. With over 150,000 investment instruments already classified, Product Risk Classification (PRC) enables clients to improve the quality of their advice.

Our offer 

Regulatory pressures affect the advisory process of banks. PRC can be used in a client-friendly and transparent suitability assessment from product to portfolio. Our methodology is adapted to private banking clients, resulting in a comprehensible risk indicator enabling a consistent comparison between different asset classes. Enhance your core advisory competencies with PRC, a service developed with Credit Suisse expertise.

Enjoy the following benefits:

  • Improve the quality of your advice with the right decision about Investment Strategy.
  • Receive valuable support for the fulfillment of regulatory requirements in a cost efficient way.
  • Get access to the PRCs of your required financial instruments.
  • Choose between two support models according to your needs.

About Product Risk Classification

PRC is used to evaluate the financial risks of individual investment products and assigns each investment product a specific risk category. It can be used to examine whether the client can bear the financial risks associated with the investment product and to identify suitable products from a large product universe.

The method of risk assessment developed by Credit Suisse takes into account the three key aspects of the financial risk of an investment product – the market risk, the credit risk and the liquidity risk. All three aspects are examined monthly based on the historical data, before being combined to give a PRC value on a scale of 1 (very low) to 5 (very high). Using a sound, independently validated procedure, this enables us to derive a straightforward risk classification.