Change Implementation Techniques for Creating a Sense of Urgency

Technique 2.76 What is Your Risk Profile?

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Risk can be defined as the effect/impact of uncertainty on objectives, inputs, outputs, outcomes, etc

Need to integrate risk (assumptions, evidence, data, etc) into strategy and decision-making. Risk type of risk can include contract, project, commercial, operational, etc

Need to be willing to challenge assumptions by asking sensible questions, seeking polite clarification, having adult conversations, etc

To understand your risk profile, respond to the following statements with a number from 1 to 5:

1 = strongly disagree

2 = disagree

3 = neither agree nor disagree

4 = agree

5 = strongly agree

Then add your scores to find your risk profile.

Even though the statements are around financial issues, it is still a good indication of your risk profile.





Your organisation is willing to choose high risk investments in order to achieve high returns



Your organisation is not bothered if an investment drops 20 percent over 3 to 6 months



Your organisation enjoys reading about financial markets and researching investments



It's possible to beat the market over the long term through careful investing



Your organisation is prepared to borrow money to invest in risky investments, like shares



Staff members of your organisation don't get stressed easily



Your organisation sees risk as equivalent to opportunity in a financial context



Your organisation is comfortable with high return investments even though I know I could lose money



A good investor is willing to buy/sell as priced by the market



Market conditions do not determine how often the organisation checks its portfolio



Your organisation is willing to accept short-term loss for long-term gain



There's not much your organisation don't know about investing



Your organisation is willing to invest a large amount of money in a risky investment for the excitement of seeing whether it goes up or down



Financial assets are no more inherently risky than non-financial ones, such as residential housing



The higher risk of share investing compared with cash is more than made out up for by higher potential returns


Total Score


What does your score mean? The a lower score shows a preference for "risk aversion", and while a higher score infers suggests more of a "risk taker", ie

Score Risk status Score Risk status

15 ‐ 20 Conservative 52 ‐ 63 Adventurous

27 ‐ 38 Cautious 64 ‐ 75 Speculative

39 ‐ 51 Balanced (source: Bina Brown, 2010)


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