Amplify Launches QuantumRisk™: AI-Powered Risk Assessment for Advisors

Amplify Platform, a company specializing in AI-native data solutions for financial advisors and their clients, has announced the launch of QuantumRisk™. This new proprietary analysis tool aims to fundamentally transform how financial advisors assess, communicate, and manage investment risk, particularly in the face of extreme market events.

For decades, the financial industry has largely relied on backward-looking risk models, often rooted in traditional statistical assumptions like bell curves and standard deviation. These models, critics argue, frequently underestimate real-world volatility and fail to account for “fat tail risk”—the likelihood of rare, high-impact events that fall outside typical market fluctuations. Such limitations were starkly exposed during periods like the 2008 global financial crisis and the market shock of early 2020.

QuantumRisk™ seeks to rectify these shortcomings. Built upon the pioneering research of Dr. Ron Piccinini, Amplify’s Director of Investment Research and a leading expert in fat tail risk modeling, the system moves beyond outdated methodologies. It leverages advancements in high-performance computing and graphics processing units, enabling real-time precision in its analysis. The new risk engine models millions of real-world outcomes and market stress scenarios in less than a second, providing a clearer picture of both the likelihood and severity of potential portfolio impacts far beyond routine market movements.

“Legacy risk tools were built for a market that no longer exists,” stated Dr. Ron Piccinini. “We designed our risk engine to reflect how markets actually behave, not how textbooks say they should. This is about giving advisors a competitive edge by making complex risk dynamics immediately visible and actionable.”

Integrated within the Amplify platform, QuantumRisk assigns portfolios and individual securities a standardized score between zero and 1,000. This metric is anchored to the historical tail risk of the S&P 500, with higher values indicating greater exposure to volatility and risk. This straightforward metric offers advisors a realistic, actionable, and easily comprehensible view of portfolio risk.

The system is engineered to provide greater transparency across the entire investment spectrum, from conservative allocations to highly leveraged strategies. This allows for more informed portfolio construction, facilitates clearer communication between advisors and clients, and supports diligent compliance oversight. Its visual, client-ready outputs are designed to integrate seamlessly into the advisor workflow, fostering more productive discussions about risk tolerance and investment expectations.

“QuantumRisk is more than simply an upgrade to risk analytics; it’s a transformative tool for enhancing client trust,” commented Vickie Lewin, Amplify’s Chief Growth Officer. She added that by embedding a modern risk score across the full client journey, the platform empowers firms to build more resilient portfolios, set clearer expectations, and cultivate more confident relationships, ultimately helping advisors better manage client expectations during market swings. The introduction of QuantumRisk represents a significant step forward in providing advisors with the tools to navigate an increasingly complex financial landscape.