risk-type compass - the tour

Risk-Type Compass™!

THE TOUR

Geoff Trickey Psychological Consultancy Ltd.

The Agenda

•  Measuring risk tolerance – the background

•  The importance of personality

•  The Risk-Type Compass™ model

•  The Risk-Type Compass™ report structure

•  The Risk-Type Compass™ in use


Introduction

•  In March 2010, PCL launched this innovative new assessment of Risk Type.

•  For the first time it is possible to dig deeper than superficial attitudes to risk.

•  Based on globally validated personality assessment technology, the Risk-Type Compass™ assigns each individual to one of eight Risk Types.

4 Geoff Trickey Psychological Consultancy Ltd.

Who are PCL? Business Psychologists specialising in psychometric test design since 1992, we:

–  launched the first UK online testing platform

– design innovative psychometric tools

– offer BPS verified training and qualifications

– deliver evidence based consultancy


The Importance of Personality •  Our innate level of anxiety – our need for

predictability, as well as our impulsivity and need for excitement - is all reflected in our personality

•  These deeply rooted ‘tendencies’ determine our appetite for risk - the foundations for Risk Type

•  However we actually learn to deal with risk, either stress or the intoxication of success can trigger a reversion to our true Risk Type


Attitude + Personality Risk tolerance is based on a combination of

attitudes and personality. •  Attitudes (variable) –  change continuously –  effected by climate, experience & circumstances

•  Personality (stable) –  stable over time – deeply rooted in genes & temperament –  the basis of Risk Type


The Risk-Type Compass™ Model

•  Measure of Risk Type - (Nature)

•  Measure of Risk Attitude – (Nurture)

•  Measure of Tolerance - RTi


Why use the Risk-Type Compass™? •  The Risk-Type Compass™ identifies 8 Risk Types

•  Type characteristics pervade all areas of life

•  It provides a model and the vocabulary required to deal with human risk factors

•  It enables you to achieve an appropriate balance of Risk Types, suited to roles in the organisation


Eight Risk Types •  Spontaneous - Impulsive and excitable, they enjoy the spontaneity of

unplanned decisions.

•  Intense - Anxious, alert to any risk and fearful of any threat to their precarious equilibrium. Passionate and self-critical by nature, they take it personally when things don’t work out.

•  Wary - Self-disciplined and cautious about risk, they are organised but unadventurous and they put security at the top of their agenda.

•  Prudent -Very self-controlled and detailed in their planning, a strong preference for tradition and the familiar.

•  Deliberate - Self-confident, systematic and compliant, they experience little anxiety and tackle risk and uncertainty in a business-like and unemotional way.


Eight Risk Types •  Composed - Cool headed, calm and unemotional, but at the extreme

may seem almost oblivious to risk and unaware of its effect on others.

•  Adventurous - Impulsive and fearless. They combine a deeply constitutional calmness with impulsivity and a willingness to challenge traditional approaches.

•  Carefree - Impulsive and unconventional, not good at careful preparation, they often seem vague about their intentions. Their impatience and impulsiveness can lead to hasty and imprudent decisions.

•  Individuals who show none of the extremes that characterise the risk types are categorised as ‘Typical’ - not exceptionally prudent or unusually reckless, nor particularly emotional or extremely calm.


The Generic Report

•  Assigns individuals to their appropriate Risk Type

•  Considers Risk Attitude across five key domains

•  Calculates the individual’s Risk Tolerance Index (RTi)


Risk Type


•  Eight risk types capture the features of personality concerned with risk

•  The Risk-Type Compass™ presents a continuous spectrum in which neighbouring Risk Types are similar and facing Risk Types are opposites

•  Markers (•) for extreme types are places at the outer edge, moderate types near the centre

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Risk Type Team Profiling


•  Multiple assessments are plotted on the compass

•  The analysis looks for convergence and diversity

•  Different roles/ groups /teams are plotted using different colour markers (• • •)

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Risk Attitudes

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•  The Risk-Type Compass™ recognises the significance of current attitudes in influencing risk tolerance in different situations

•  Risk Attitude is influenced by experience, training, current climate or personal circumstances – and is therefore changeable

•  Focus on the five key domains addressed by Risk Attitude research


Risk Tolerance Index (RTi)


The Risk-‐Type Compass™ generates a Risk Tolerance Index (RTi) based on Risk-‐Type and posi>on on the Risk-‐Type Compass (i.e. strength of Risk-‐Type), adjusted to reflect the variability of Risk AItude across five key domains.

The Report Features


•  Clear introduction, type descriptions and supporting explanations designed for maximum accessibility

•  Graphic of Risk-Type - each individual’s ‘compass’ position in relation to the 8 risk types

•  Graphic showing variability - the individual’s Risk Attitudes across a key sample of different risk domains

•  Graphic showing overall Risk Tolerance (RTi)

Practicalities •  Fully automated reporting system

•  Online administration

•  Price per ‘click’ or annual licence

•  102 easy to answer questions about YOU –  ‘I am willing to try anything once.’

–  ‘I am always careful to stick to the rules.’

•  10-15 minutes to complete

•  Investor and Financial Advisor reports also available


Any Questions? •  Free trial and further information available

from our website:

http://www.psychological-consultancy.com

Call us on +44(0)1892 559 540

THANK YOU FOR YOUR TIME


risk-type compass - the tour

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