At PrimeSolve, we believe advisers can add significant value by showing clients how lifestyle decisions and other uncertain variables such as investment returns impact the probability of meeting their stated objectives. 

We have built sophisticated risk analysis techniques to ensure you can effortlessly provide probability analysis and give your clients a deeper understanding of their financial position. 

Our risk analysis tool offers the following features:

• Monte Carlo simulation – We run thousands of trials to help you better understand the impact of uncertainty of investment returns. 

• Sensitivity analysis – Have a deeper understanding of how sensitive your model is to objectives. This may help clients better evaluate objective priorities. 

• Simulation optimisation – Optimisation helps make better choices when data is known, whilst simulation helps you understand the possible outcomes when data is uncertain. We combine these methodologies to ensure you are able to make better decisions on what you can control, taking into account the range of potential factors you can’t control such as investment returns. 

Our simulation optimisation analysis allows you to solve problems such as:

• Solve for the highest probability of meeting stated objectives; or

• Solve for highest net equity for a given confidence interval of 75%

This often leads to a more satisfactory outcome than a simple linear optimisation, which may have a higher base case outcome but introduce unnecessary risk.