CSI Wealth Management Essentials (WME) Practice Exam

In Know Your Client work, you determine suitability by gathering information that reflects the client's preferences and constraints: what they aim to achieve (investment objectives), how long they plan to invest before needing funds (time horizon), and how taxes affect their strategy (tax considerations). Market risk exposure, on the other hand, describes how much risk the investments themselves carry due to market movements. It’s an assessment of the portfolio’s risk rather than a basic client attribute you collect as part of the suitability criteria. The client information categories—objectives, time horizon, and tax considerations—are the essential inputs used to tailor recommendations, while market risk exposure is an outcome you evaluate after outlining a strategy.