Investment risk profiling is a cornerstone of the suitability assessment process, yet the current model is fragmented. Each financial institution designs its own questionnaire, applies its own scoring logic, and retains the resulting profile. The investor has little visibility into how their profile was constructed, and no ability to carry it with them when they move to a new provider.

The absence of standardization means that two investors with identical characteristics may receive different risk classifications depending on which institution they approach. This inconsistency undermines the protective intent of suitability regulation and creates opportunities for institutional bias in product recommendations.

The research introduces the Portable Investment Risk Profile (PIRP) — a framework in which risk profiles are created independently of any financial institution, owned by the investor, and portable across providers. By separating the profiling process from the product distribution channel, PIRP aims to reduce conflicts of interest and improve the accuracy and consistency of suitability assessments.

The paper explores the regulatory context, identifies the structural limitations of current approaches, and proposes a practical ecosystem model in which investors, advisors, and regulators can all benefit from a more transparent and standardized risk profiling infrastructure.