The Risk Type Compass personality assessment that aims to capture the distinguishing ways employees behave in risk-orientated situations, focusing on differences in the way individuals perceive, react to, and manage risk, as well as how they make decisions. Based on extensive global psychological research, it places individuals into one of eight distinctive Risk Types, providing insights that have important implications for individuals, teams and the organisation. Risk Type allocation is non-judgmental, and every risk type has its advantages and benefits, disadvantages and challenges.The assessment also recognises that individuals’ approach to risk is influenced by both their natural temperament as well as their experiences, risk exposure and personal circumstances. While risk management has previously focused on procedures, regulation and legislation, the Risk Type Compass uniquely assesses the risk-taking nature of individuals. By identifying critical individual differences in risk appetite, organisations can maximise potential and balance the contributions of risk-takers and more risk-averse individuals.

ASSESSMENT SCALES

The Risk Type Compass is built on two key factors which determine a person’s risk tolerance:

• Risk Type: Aspectof a person’s natural temperament proven to establish their general reaction to any kind of risk and uncertainty. The eight Risk Types are Spontaneous, Intense, Wary, Prudent, Deliberate, Composed, Adventurous and Carefree. About 12% who are placed close to the mean on both axes ofthe compassare described as ‘Typical’.

• Risk Attitude: Said to be characterised by the variations that arise from day to day events, experiences and personal circumstances are likely to influence his/her attitude towards different types of risk.

AREAS OF APPLICATION

The Risk Type Compass can be utilised throughout an organisation, from an individual to team level, and at the wider organisational level. Relevant across all industry sectors, it is particularly used in the banking/finance, coaching, consulting, manufacturing, insurance and energy sectors for:

• Selection/Development

• Team Building

• Risk Management (Human Factors)

• Surveying Risk Culture

• Investor Risk Profiling

REPORT OPTIONS

The Risk Type Compass has the following software reports available:

• Personal Report: Most useful for selection and development purposes, an overview of an individual’s Risk Type, Risk Attitude and Risk Tolerance, along with easy-to-understand interpretations of the individual’s risk-taking tendenciesis provided.

• Risk Type Report: Provides a summarised overview of individual’s Risk Type and Risk Tolerance.

• Investor Report: Designed to assist investors in discussing portfolio decisions; the risk exposure and investment options that are most suitable.

• Financial Adviser Report: A one-page summary, provides implications for client management and Risk Tolerance Index.

• Team Reportand Workbook: Designed to explore group’s predisposition to risk and its’capacity to manage risks and decision making required in their roles. It supports team developmentand effectiveness events, exploration of group dynamics and considers team member selection to achieve the desired balance of Risk Types, highlighting areas for development.

SOUTH AFRICAN RESEARCH

Although South African research is not currently available for the Risk Type Compass, JvR Psychometrics welcomes the opportunity to partner with clients in conducting research studies.