In recent times it has become increasingly important to understand an individual and organisation’s risk tolerance and preferences. We are seeing the rise in understanding that behavioural risk plays a vital role in risk management.
The Risk-Type Compass provides a unique perspective on the human risk factor. Identifying individuals as one of eight ‘Risk Types’, it offers a typology and vocabulary that facilitates risk planning, research and discussion about risk tolerance. It addresses the suitability of different Risk Types for risk related roles and, within the investment domain, allows portfolio management to achieve higher levels of risk suitability for clients. It also offers insight into the individual’s attitude towards risk in five different domains, including Financial, Social and Reputational.
- Though applicable to all industry sectors, Risk Type Compass has particular relevance within the banking and finance, insurance, energy, manufacturing and consulting sectors.
- Within the financial services industry, the RTC is used to ensure a common understanding between advisor and client of their relative risk preferences
- With leadership teams and Boards to ensure a diversity of risk preferences and types
- With individuals to ensure a job fit with regard to risk types
- Risk Type Compass provides a combination of insight into risk tolerance and where comfort with risk applies to individuals and teams
- A range of reports are available including Personal Report, Investor Report, Financial Advisors Report and Team Report