* Price covers the $3 IAR CE reporting fee.

Course Description

This self-study course gives Investment Adviser Representatives a clear, practical framework for identifying and managing portfolio risks. You’ll distinguish systematic vs. unsystematic risk, translate simple risk measures (volatility, beta, correlation, drawdown) into allocation choices, and apply diversification principles using mutual funds and ETFs. The course emphasizes real-world decision making—how to set and document an appropriate risk posture in the IPS, construct diversified models, avoid hidden concentrations, and maintain discipline through rebalancing and client education. Designed to align with NASAA IAR CE Products & Practices themes, the course focuses on suitability, fiduciary duty, and plain-English client communications about risk and reasonable expectations.

Difficulty Level: Foundational

IAR CE: 1 credit in Products and Practice (Course # C80869)

CFP CE: 1 hour in General CE (Course # 344343)

Year Released: 2026

Course curriculum

    1. Course Instructions

    2. FINRA Reporting

    1. Understanding Portfolio Risk: Systematic vs. Unsystematic

    2. Measuring What Matters in an Introductory Risk Framework

    3. Module 1 Quiz

    1. Asset Allocation Basics for Broad Diversification

    2. Constructing a Diversified Portfolio with Funds

    3. Module 2 Quiz

    1. Rebalancing and Ongoing Risk Control

    2. Fiduciary Considerations and Client Education

    3. Module 3 Quiz

    1. Course Conclusion and Key Takeaways

    2. Course Survey

    1. Final Assessment

About this course

  • $9.95
  • 14 lessons
  • IAR CE 1 Credit in Products and Practice
  • $3 IAR CE reporting fee included

Course Learning Objectives

By the end of this course, the learner will be able to:

Differentiate between systematic (market-wide) and unsystematic (security-specific) risks and identify which risks diversification can—and cannot—address.

Explain the purpose and limitations of basic risk metrics (volatility, beta, correlation, drawdown) in an introductory portfolio context.

Translate a client’s goals, risk tolerance, risk capacity, and time horizon into a documented risk posture consistent with an Investment Policy Statement (IPS).

Construct a diversified allocation using core building blocks (equities, fixed income, cash equivalents, real-asset exposure via funds) and avoid hidden concentrations through look-through analysis of mutual funds and ETFs.

Select appropriate benchmarks and interpret tracking differences at a high level to set realistic performance and risk expectations with clients.

Apply simple, rules-based rebalancing methods (calendar and/or threshold) and basic tax-aware practices to maintain the intended risk profile over time.

Identify common behavioral pitfalls (recency bias, loss aversion) and use client-friendly explanations to reinforce diversification and long-term discipline during market stress.

Document suitability and fiduciary rationale for the chosen allocation— including costs, risks, and review cadence—using clear, plain-language client communications.

According to NASAA guidelines, to successfully complete the course, you must achieve a score of at least 70% on the final assessment. You have up to three attempts to reach this score. If you do not pass after three attempts, you will need to retake the entire course before you can try the assessment again.

Course Instructions

NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are my/our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.

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