CASE STUDIES ON RISK PROFILING OF A CLIENT

1. Mr.Sridhar, aged around 27 years, is a software Engineer for the Past 3 years, working in CISCO an IT
company. His present earnings are around Rs.8 Lacs p.a. He is presently able to save around 33% of his
income, but confident it will increase upto 40% during next 3 years, after meeting all his commitments.
His parents are not dependent on him. He married last year. His wife is a home maker and as they are
planning for their first child, she does not plan to join a job. Mr.Sridhar plans to buy a car in next 2 years,
for which he has to save Rs. 1 Lakh towards margin. He is happy with his present job and expects an
increase in salary of 20% annually in the next 3 years. He has a credit card and has never defaulted or
taken a loan against it. He has an educational loan being repaid over next 3 years carrying an EMI of
Rs.10,000/-. In the medium term, he is confident of reaching all his goals and expects his financial
situation to be reasonably good. He wishes to retire at the age of 55 years.

Assignment: Using the scorecard find out the Risk profile of Mr.Sridhar.

2. Determine the Risk Profile of Mr.Ram, working as a Chief General Manager, in a leading private sector
company and is retiring in next 6 months. He has a highly educated Son, aged about 30 years and
working for a MNC. He has a daughter to be married in next 1 or 2 years. His wife is a home maker. His
present savings are close to Rs.One crore, 60% of which is invested in Equity and his terminal bnefits
will be around Rs.25 lacs.He has only a car loan outstanding of of Rs.5 lacs, to be repaid in next 2
years..After retirement he do not receive any pension from the company.

You may assume where information is missing or vague and then workout the Risk Profile of Mr.Ram.