What action should be taken to assess a client's risk profile?

The most appropriate action to assess a client's risk profile is to have them sign a waiver to the Customer Suitability Assessment Risk Profile. This step is essential because it ensures that the assessment is formally acknowledged and that the client understands the implications of their risk tolerance. The Customer Suitability Assessment is designed to gather comprehensive information about the client's financial situation, investment objectives, and risk tolerance.

When clients sign the waiver, they are agreeing to participate in the necessary evaluations that help financial advisors create a tailored investment strategy aligned with their financial goals. This formal agreement can also provide a legal safeguard for advisors by documenting that the client has been made aware of the risk associated with their investment choices.

Other options, while they may provide some insights into a client's risk tolerance, do not have the same rigor or formal acknowledgment as the waiver process. For instance, reviewing past investment choices can give some context to a client's risk behavior but lacks a structured approach to evaluating current risk tolerance. Conducting a phone interview can also provide qualitative insights but may not be comprehensive and require documentation. Finally, providing a general risk questionnaire may yield useful information but may not capture the full nuance of an individual's financial circumstances as effectively as the formal assessment process.