Take the tour 2014

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® practicalities Geoff Trickey Psychological Consultancy Ltd.

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.

Geoff Trickey Psychological Consultancy Ltd.

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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

Geoff Trickey Psychological Consultancy Ltd.

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 Geoff Trickey Psychological Consultancy Ltd.

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 Geoff Trickey Psychological Consultancy Ltd.

The Risk Type

® Compass Model

• Measure of Risk Type - (Nature) • Measure of Risk Attitude – (Nurture) • Measure of Tolerance - RTi

Geoff Trickey Psychological Consultancy Ltd.

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 managers to balance teams and to select the appropriate Risk Type for any role

Geoff Trickey Psychological Consultancy Ltd.

Risk Type

Geoff Trickey Psychological Consultancy Ltd.

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Eight risk types capture the features of personality concerned with risk

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

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

Eight Risk Types • Excitable - Impulsive and unpredictable, 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.

Geoff Trickey Psychological Consultancy Ltd.

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 ‘Axial’ - not exceptionally prudent or unusually reckless, nor particularly emotional or extremely calm.

Geoff Trickey Psychological Consultancy Ltd.

Risk Attitudes

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

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

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Focus on the five key domains addressed by Risk Attitude research

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Risk Tolerance Index (RTi)

The Risk Type Compass® generates a Risk Tolerance Index (RTi) based on Risk Type and position on the Risk Type Compass® (i.e. strength of Risk Type), adjusted to reflect the variability of Risk Attitude across five key domains.

Geoff Trickey Psychological Consultancy Ltd.

Report Options • Personal Report • Risk Type Report (Risk Type only)

• Investor and Financial Adviser Reports • Team Report Package

Geoff Trickey Psychological Consultancy Ltd.

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)

Geoff Trickey Psychological Consultancy Ltd.

The Personal Report • Assigns individuals to their appropriate Risk Type • Considers Risk Attitude across five key domains • Calculates the individual’s Risk Tolerance Index (RTi)

Geoff Trickey Psychological Consultancy Ltd.

Risk Type Report • Focuses on Risk Type only • Assigns individuals into one of the eight Risk Types • Calculates the individual’s Risk Tolerance Index (RTi)

Geoff Trickey Psychological Consultancy Ltd.

The Investor Report • Follows same format as Personal Report • Identifies an investment recommendation for the individual based on their RTi • Can be used alongside the Financial Advisers Report

Geoff Trickey Psychological Consultancy Ltd.

The Financial Adviser Report • One page summary of the individual’s Risk Type, Risk Attitude and Risk Tolerance • Includes implications for client Management • Can be used alongside the Investors Report

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Risk Type Team Package • Multiple assessments are plotted on the compass • The analysis looks for convergence and diversity • Group dynamic is considered in relation to Risk Type influence across the group • Receive Team and Individual workbooks Geoff Trickey Psychological Consultancy Ltd.

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

*there are fewer items in the Risk Type Report assessment Geoff Trickey Psychological Consultancy Ltd.

Any Questions?

• Further information available from our website: http://www.psychological-consultancy.com

Call us on +44(0)1892 559 540

THANK YOU FOR YOUR TIME Geoff Trickey Psychological Consultancy Ltd.