Product Risk Indicator

Product Risk Indicator

Going Beyond Regulation

Easy Risk Assessment with a Unique Indicator for All Asset Classes

In an increasingly regulated financial environment, managing risk across diverse financial instruments is essential for financial institutions. To support this, SIX offers two complementary risk indicators designed for different needs:

Product Risk Indicator (PRI)
With a methodology based on recognized PRIIPs/MiFID II standards, the PRI enables banks, asset managers, and insurance companies to assess market and credit risk with confidence for any financial instrument not in scope of PRIIPs. This ensures not only comparability with the Summary Risk Indicator (SRI), provided by manufacturers themselves, but full transparency for all clients across the instruments universe.

Product Risk Classification (PRC)
For all types of financial instruments, the PRC evaluates market, credit and liquidity risk, regardless of jurisdictions or regulatory frameworks. This enables retail banks and wealth managers to apply one consistent risk metric across the entire portfolio, including instruments governed by different regulations.

Benefits

Maximize Compliance for Your Specific Needs

Comprehensive Asset Class Coverage

Enabling risk comparison across different instrument classes, both SIX Risk Indicators, the PRI in conjunction with the SRI, and the standalone PRC, apply robust methodologies to complement your individual use cases and regulatory needs.

Cost Efficiency

One indicator, one fixed fee – fit to your product risk approach. Optimize costs with a single risk evaluation service, regardless of portfolio composition.

Easy and Direct Access

Data integrated into your established channels. Request and access PRI and PRC through channels used for other SIX regulatory services.

About This Product

Understand & Compare Risk Like Never Before

Navigating investment risks can be complex, but the classification solutions by SIX provide clear, standardized, and comparable approaches to evaluating financial instruments, fitting the different frameworks and regulatory environments. Designed for both professional advisors and retails investors, our methodologies enable seamless risk assessment across all asset classes, ensuring better decision-making and regulatory alignment within PRIIPs/MiFID II requirements or outside.

"SRI" for All Instruments

PRI Risk Data Scope – Based on the SRI methodology, our framework extends to non-PRIIPs assets, allowing cross-comparison of risks across UCITS funds and beyond. See how different instruments compare at a glance.

Table illustrating the Product Risk Indicator (PRI) data scope, based on the SRI methodology, enabling risk comparison across UCITS funds and other non-PRIIP assets.
Team discussing financial risk analysis, representing the Product Risk Classification (PRC) by SIX, which integrates market, credit, and liquidity risks for all financial instruments.

PRC: the Ultimate Risk Indicator

Product Risk Classification (PRC) by SIX – A proprietary, market-standard risk indicator covering all financial instruments, including PRIIPs and non-PRIIPs assets. With a scale from 1 (low risk) to 5 (high risk), PRC integrates:

  • Market Risk: VaR, Expected Shortfall, or Volatility

  • Credit Risk: Expected Loss 1Y (EL1Y)

  • Liquidity Risk: Synthetic Liquidity Indicator (ISL)

Access the Detailed Factsheets

Learn more about the Product Risk Indicator, the Product Risk Classification and their different applications in financial risk management.

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Product Risk Indicators: Your Questions Answered

  • Do You Have Any Questions about Product Risk Indicator (PRI)?

    Enhance risk management with SIX. Learn more about integrating the PRI into your daily operations.

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