Risk Type Compass
The key to effective decision making is understanding individual differences in your staff, and how they interact with their environment and each other. Understanding different personalities can help us identify and predict how a person might react to unexpected events or outcomes.
What makes each of us unique is also key to defining how we take and manage risks. In the past, risk management was focused heavily on procedures, regulation and legislation rather than on the risk-taking nature of the individuals involved. The Risk Type Compass personality assessment focuses on differences in the way individuals perceive, react to and manage risk, as well as how they make decisions.
Based on extensive psychological research, the Risk Type Compass places individuals into one of eight distinctive Risk Types. By identifying differences in risk appetite, organisations can maximise potential and balance the contributions of risk-takers and more risk-averse individuals. Only once you can measure these differences can you begin to manage it effectively.
The test is easily administered online and takes just 10-20 minutes to complete.
The Risk Type Compass graphic places people within a continuous 360° spectrum in which adjacent Risk Types are similar and merge into each other, while facing Risk Types have opposite characteristics. The strongest Risk Types are positioned towards the outer edge of the Compass. The report also identifies subthemes, and the strengths of preference within each subtheme.
In the general population, these risk types are evenly distributed. It is important to understand the variety and combinations of the different dispositions in a group, and the different contributions each person can make.
The Risk Type Compass can generate individual and group reports. These can help raise awareness about potential risks and benefits of each type, support human resources planning and decision making, and facilitate discussion and coaching conversations.
Though it is applicable to all industry sectors, the Risk Type Compass has particular relevance within banking and finance, auditing, insurance, trading, energy, manufacturing and consulting sectors.
Investors have also found that using this assessment with their clients helps them to better recommend investment portfolios that meet their client’s appetite for financial risk
The range of applications in organisations is wide and far reaching, for example:
- Individual, leadership and team development
- Risk Management
- Identifying Risk Culture
- Understanding how executive boards manage organizational risk
An Example Application of the Risk Type Compass
This qualifying workshop is designed to enable practitioners to use the Risk Type Compass with confidence. Delegates are introduced to a wide range of possible applications at the individual, team and corporate levels. The origins, development, rationale and strategic relevance of the tool and its significance in making sense of the confusion surrounding ‘propensity for risk’ are explained.
It can be completed face-to-face or online, via our on-demand learning platform. Completion of either form of the Workshop will equip you with the tools and knowledge to:
- Appreciate the importance of risk in your organisation
- Understand how Risk Types apply to a variety of industries, professions and roles
- Deliver feedback to Risk Type Compass participants
- Implement enhancements to your organisation’s risk management strategy
- Interpret Risk Type Compass Group Reports and facilitate team workshops
The course fee provides:
- Certification in the Risk Type Compass®
- One complimentary assessment per person to practise feedback after the course
- Comprehensive training materials including presentation slides and extensive Risk Type interpretation supporting handouts
- Access to articles, brochures and research on the topic of risk tolerance