Understanding the Risk Attitude

In this podcast, Ricardo talks about people's different attitudes and profiles against the risks. He explains these attitudes and profiles by analyzing a chart in the book "Understanding And Managing Risk Attitude", by David Hillson. See Ricardo's brief review of the book here: https://www.ricardo-vargas.com/books/recommendations/75/ View the chart discussed in the podcast: https://www.pmi.org/learning/library/managing-risk-attitude-using-emotional-literacy-8156

Download (6 MB)

Episode transcript

The transcript is generated automatically by Podscribe, Sonix, Otter and other electronic transcription services.

Hello, everyone. Welcome to the five minutes BM podcast today. I like to share with you when graphic and one concept that I like very much, its from a David Hillson book called Understanding And Managing Risk Attitude and this graphic it's all about understanding the human behavior behind the risk management process and this graphic, of course just a Nario it's hard to explain, but I will give you the link and also you can Google Understanding the Risk Attitude David Hillson and you will see this graphic, but basically in the acts you will have in one side or the level of risk in the order's heart in the vertical axis, you have tolerance level on the apart and discomfort level on the bottom part.

So its like an inverted T. Okay. And Dan, we have an S shape as a graph and the ass shape show. First on the extremes of the ax, you see the two extremes profiles on their risk. Attitude the first extreme profile is know with a minimum level of Risk. They feel an extreme discomfort, very, very strong discomfort. This is what we call Risk Barra night.

Those are with not a normal reaction. Every single Risk is perceived by them as in a huge, huge, very, very, a strong risk in the order side, on the top part of the ES, we have exactly the opposite dose with an extremely high level of risk fill in an extremely comfort on that this we call Risk addicted. So those who need the risk close to this two areas, close to the paranoid and close to the addicted.

We have a less intense profile, but this still a very strong, close to the Risk paranoid. We have the risk averse. What does the risk averse is that the group or the people or their organization that feel a very high discomfort, not like the paranoid with a quite low level of risks. And in the other side, very close to the Risk addicted. We have the Risk sicker or add like very much to say the game player and the game player is a group that, that feels quite relevant.

Comfort. We have a very high level of risk. All the store are not extreme as a party annoyed and the Risk addicted, but the are very strong in, in the middle. We have the normal profile. So we have paranoid. We have averse, we have normal, we have a game players or risk seekers and we have addicted. And it's very important. If you do not understand where your organization, where your group on or where you stance in this graphic, you will meet, use the process of identify a fine qualifying in responding to Risk.

Because if you had an extreme behaviour, you will shake a set of risks that may be are extremely detailed and your capturing very erratic risks in the case of paranoia, the risk averse or, or you are missing or extremely high risks because you are a game player or because you are a risk of death, understand this, you will shape much better the way can you do risk management because of that, the risk management is all about understanding. People's per say, what about the threats and the opportunities that they have if we do not Understanding this is pointless to have a very great tool, a very great process.

If you do not understanding how people behave when they identify, qualify and respond to these risks. So it's very, very important. I think a David Hillson did a great job on Understanding this framework. So I'm putting on this post, the link bought for those without access directly to the site that is subscribed in this on iTunes. I'd suggest you to Google David Hillson with H they've Hillson Understanding And Managing Risk Attitude. You will find this graphic there and it's a very relevant and valuable graphic for us to understand risk management.

I hope you enjoyed this podcast. Then see you next week with another five minutes to be on podcasts.

Menu

Resources & Insights

Products & Services

More Resources & Insights

Ricardo Vargas

Podcasts

Understanding the Risk Attitude

Search in Podcasts

Latest podcast episodes

Book recommendations