Risk

Type Assessment

The Risk Type Compass: Key to Good Decision-Making

The key to effective risk management is understanding the risk behavior and appetite of your employees or clients.

To understand the implications of decision-making in uncertain times, we must focus on individual differences in how we perceive risks and react to them: the people side of risk.

One person’s risk is another person’s opportunity. Therefore, the risk personalities of individuals impact performance improvement and team development. Besides that, risk personalities act as a catalyst in building an effective organizational culture.

The Risk Type Compass is used to improve team and group development and executive boards. By assessing each member’s risk type and attitude, imbalances or potential conflicts can be identified and mitigated to ensure a balance of behavior across the organization.

Approach

General introduction and understanding of the team: practical cases, strategic goals, relevant stakeholders;
Online self-assessment;
Individual risk analysis: strengths and pitfalls;
Team risk analysis: team dynamics and risk diversity of the team;
Workshop: insight, discussion, solutions, and actions;
Action plan: what should be done differently and can this change be implemented;
Follow-up actions/monitoring progress/coaching.

Approach

General introduction and understanding of the team: practical cases, strategic goals, relevant stakeholders;
Online self-assessment;
Individual risk analysis: strengths and pitfalls;
Team risk analysis: team dynamics and risk diversity of the team;
Workshop: insight, discussion, solutions, and actions;
Action plan: what should be done differently and how are we going to implement this change.
Follow-up actions include: monitoring progress & coaching, amongst others.

The importance of insight into risk behavior

Improve risk management and decision-making;
Gain insight into individual risk behavior;
Gain insight into group dynamics;
Create productive conflict;
Maximize potential and balance different risk types;
Create awareness of groupthink and blind spots;
Increase effective stakeholder management.

GRAPHIC A: GROUP SCATTERGRAM

GRAPHIC B: RISK TYPE INFLUENCE

GRAPHIC C: CENTRE OF GRAVITY

The importance of insight into risk behavior

Improve risk management and decision-making;
Gain insight into individual risk behavior;
Gain insight into group dynamics;
Create productive conflict;
Maximize potential and balance different risk types;
Create awareness of groupthink and blind spots;
Increase effective stakeholder management.

GRAPHIC A: GROUP SCATTERGRAM

GRAPHIC B: RISK TYPE INFLUENCE

GRAPHIC C: CENTRE OF GRAVITY

Key elements

The risk type assessment is an accessible and effective tool for different teams. Assessing the team’s risk profile increases risk awareness, teamwork, and stakeholder management. Analyzing the different risk types within a group allows you to change communicational aspects from friction to productive conflict. Furthermore, risk awareness results in solid and sustainable decision-making, as it enables teams to recognize weak spots and strengths of team dynamics and collective risk behavior.

GRAPHIC D: GROUP RISK TOLERANCE INDEX

Key elements

GRAPHIC D: GROUP RISK TOLERANCE INDEX

Why Probability?

Experience with management teams and executive training;
Combining knowledge of behavior and experience around risk management and decision-making;
Practical insights and proven successful solutions;
Experience with different types of organizations and teams (insurers, pension funds, audit, actuarial, and board teams);
Operating at all levels in the organization.