The Risk Meter is an online tool developed by the Financial Industry Regulatory Authority (FINRA), a US-based organisation dedicated to safeguarding the integrity of financial markets. The tool is aimed at individuals who want to assess their vulnerability to investment fraud. Its primary target audience includes investors and finance professionals seeking to identify their risk exposure to fraudulent schemes.

The Risk Meter works by asking a series of questions about personal characteristics, investment behaviour, and financial habits. Upon completion, users are given a result indicating their potential susceptibility to fraud. The tool is particularly useful for individuals who have never invested before, as it helps them understand their own risk factors, which may inform investment advice and risk management strategies. It also raises awareness of common tactics used in fraudulent schemes, enabling finance professionals to better protect their clients and themselves.

This tool can benefit finance professionals in several ways. First, it offers an educational aspect, increasing awareness about the types of behaviours and circumstances that might make someone more vulnerable to scams. Second, it helps finance professionals recognise patterns of fraud, which can aid in advising clients more effectively on avoiding risky investments. Finally, the Risk Meter serves as a simple but effective resource for those looking to strengthen their knowledge of fraud prevention and improve their financial decision-making processes.

The Risk Meter is freely accessible and easy to use, making it a practical addition to the toolkit of finance professionals focused on safeguarding both personal and client investments.